For 2007 it made some sense when there were marches going on for CJ, suicide bombings more frequently, Lal Masjid saga, May 12 mayhem etc. I believe this "ranking" will get better for this year Inshallah.
If you would look at the indicators that they compile the data from, Pakistan can not get better in its ratings for some years. It involves indicators like external intervention, local secure environment, political status, displacement of refugees, Flight from the country to other countries, country being ruled by a handful of elites, division among communal lines etc. I don't see any improvement in these during this year or anywhere in the near future.