Amir Khan

The Human Development Index (HDI), a composite measure comprising gross national income per capita, life expectancy at birth, and expected and average years of schooling, serves as a vital yardstick for gauging a country's progress. Pakistan's HDI significantly trails behind neighbouring countries such as Bangladesh and India, primarily due to ineffective policy-making. Talking to WealthPK, Dr Muhammad Afzal, an economic adviser at the Ministry of Planning, Development and Special Initiative, said that the root cause behind Pakistan's lower level of HDI was the low allocation of public expenditure on education and healthcare. Pakistan finds itself at a distressing juncture, ranked a disheartening 164th out of 193 countries, with an HDI of 0.540, placing it squarely in the low human development category, according to the HDI data released by UNDP. This decline marks a significant regression for Pakistan, which once occupied a place in the medium human development bracket.

Contrastingly, in 2020, Pakistan stood at 154th place with an HDI of 0.557, only to witness a downward spiral, slipping to 161st position in the 2021-22 ranking. Bangladesh boasted an HDI of 0.670, a staggering 24% higher than Pakistan's, securing a place in the medium development tier at 129th position. India, too, maintains its foothold in the medium development category, standing at 134th place with an HDI of 0.644. Despite its faltering HDI, Pakistan demonstrates a lower poverty rate, with only 4.9% of its population living below the international poverty line, compared to 10.9% in India and 13.5% in Bangladesh. The data shows even more alarming discrepancies, particularly in the education indicators. Pakistan trails significantly in average years of schooling, with a mere 4.5 years, compared to 7.4 years in Bangladesh and 6.6 years in India. Similarly, while life expectancy at birth in Pakistan stands at 66.4 years, it reaches 73.7 years in Bangladesh, reflecting stark disparities.

Recent data from the Federal Ministry of Finance reveals a concerning decline in spending on education, plummeting from 2.1% of GDP in 2017-18 to a mere 1.3% in 2021-22. Consequently, the education sector grapples with a severe crisis, evident in the decline of public schools and teachers. While provincial governments shoulder the bulk of education expenditure, dwindling federal transfers coupled with inadequate fiscal efforts exacerbate the situation. Comparisons with regional counterparts like India, where education spending stands at 2% of GDP, highlight Pakistan's urgent need for strategic investment in human capital. As Pakistan navigates these challenges, the imperative lies not just in reversing the downward trajectory but also in charting a transformative course towards inclusive growth and prosperity.

Credit: INP-WealthPk