PAKISTAN’S ranking at 168 out of 193 countries in the latest Human Development Index (HDI) report should serve as a wake-up call for policymakers.
While public debate often revolves around GDP growth, foreign exchange reserves, fiscal deficits and IMF programmes, the HDI reminds us that the ultimate purpose of economic policy is not merely to increase national income but to improve the quality of human life. Pakistan’s frustrating position reflects a deeper reality: economic growth has been too slow, too inconsistent and too disconnected from human development.
The Human Development Index, developed by the United Nations Development Programme, measures progress through life expectancy, education and per capita income, offering a broader picture of development than GDP alone. Pakistan’s HDI value has gradually improved over the past two decades, yet its global ranking has fallen from around 147th in the early 2000s to 168th today, reflecting not a decline in absolute terms but the faster progress achieved by many other countries.
One major reason for Pakistan’s low HDI ranking is its inconsistent economic growth. Although GDP growth exceeded six percent between 2003 and 2007 and reached eight percent in one year, it proved unsustainable. Since then, repeated cycles of boom and bust, driven by energy shortages, political instability, security challenges, debt pressures, floods and policy discontinuity, have limited growth. As a result, per capita income remains among the lowest in the region and rapid population growth has diluted gains in national income, making it difficult to improve individual welfare and living standards.
The comparison with neighbouring countries is instructive. Bangladesh, once considered economically weaker than Pakistan, now enjoys a significantly better HDI ranking. Nepal, despite its geographical and economic constraints, has also made substantial progress. These countries invested consistently in education, healthcare, women’s empowerment and population management. Their experiences demonstrate that human development is not determined solely by economic size but by policy priorities.
Education remains one of Pakistan’s most persistent weaknesses. Public expenditure on education has hovered around two percent of GDP for many years, among the lowest rates in the developing world. Millions of children remain out of school, while learning outcomes for those enrolled often remain poor. Without a skilled and educated workforce, economic productivity suffers, creating a vicious cycle of low growth and low human development.
The health sector presents a similar picture. Public health spending remains inadequate to meet the needs of a rapidly growing population. Many citizens lack access to quality healthcare facilities, particularly in rural areas. High rates of child malnutrition, maternal mortality and preventable diseases continue to affect human development indicators. A nation cannot achieve meaningful progress when a large segment of its population remains unhealthy.
Another important factor is the low participation of women in the workforce. Pakistan has one of the lowest female labour force participation rates in the region. This not only limits household incomes but also constrains overall economic growth. Countries that have improved their HDI rankings most rapidly have generally succeeded in integrating women into education, employment and decision-making processes.
Economic inequality further complicates the situation. While certain sectors and regions have benefited from growth, many citizens continue to struggle with poverty and unemployment. Human development requires that economic gains be broadly shared rather than concentrated among a small segment of society.
The recent economic crisis has intensified these challenges. High inflation has eroded purchasing power, reducing the real incomes of millions of households. Rising costs of food, energy, healthcare and education have made it increasingly difficult for ordinary citizens to improve their living standards. As a result, gains in human development have slowed significantly.
Improving Pakistan’s HDI ranking will require more than temporary economic stabilization. It demands a long-term national commitment to human capital development. Sustained GDP growth of six to seven percent annually is essential, but growth alone will not suffice. Increased investment in education, healthcare, skills development and social protection must accompany economic expansion. Population growth must be managed through effective family planning and awareness programmes. Female education and employment should become central pillars of development policy.
Tax reforms can also play an important role. A broader and fairer tax base would generate resources for investment in social sectors. At present, Pakistan spends substantial amounts on debt servicing while education and health continue to receive insufficient funding. Rebalancing these priorities is critical.
Ultimately, the HDI ranking is not merely a statistical measure; it is a reflection of the everyday realities faced by millions of Pakistanis. It tells us whether people are living longer, learning more and earning enough to lead dignified life. Pakistan’s position at 168 should not be viewed as a national embarrassment but as a call for serious reflection.
The path to higher human development is neither mysterious nor unattainable. Many countries have demonstrated that consistent policies, investment in people and inclusive growth can transform societies within a generation. Pakistan possesses the human and natural resources needed for such a transformation. The challenge lies in shifting the focus from short-term economic management to long-term human development. Only then will economic growth translate into genuine progress and only then will Pakistan begin to climb the HDI rankings in a meaningful and sustainable manner.
—The writer is senior Retd Bureaucrat.
