This paper analyses Pakistan's competitiveness in the light of the World Economic Forum's Global Competitiveness Index, which measures the level of competitiveness of the country. There are 12 pillars and 5 stages of development level on the basis of which every country is ranked for competitiveness level and placed within different five stages of development. This study restricts its analyses to south Asian countries, which fall in the 1st stage of development. The study found the majority of the variables of GCI comes through opinion polls for calculating the index. The study found a moderate relationship between export diversification and GCI for the selected countries.