PAKISTAN’S journey toward achieving the Sustainable Development Goals (SDGs) has been marked by slow progress, with only 20% of targets on track, 42% showing moderate advancement and 38% regressing.
The nation’s ranking—137th out of 167 countries—lags behind regional peers, reflecting systemic socio-economic and governance challenges.
As the FY26 budget unfolds, critical interventions are needed to address gaps in poverty reduction, healthcare, education, environmental sustainability and economic growth.
Pakistan’s SDG Performance in Regional Context: Pakistan’s SDG Index score of 57.0 is significantly lower than the regional average of 66.5.
Countries such as Bhutan (72.5), Indonesia (69.4), Sri Lanka (67.4), Nepal (67.1) and Bangladesh (64.3) have outperformed Pakistan in key development indicators.
Afghanistan, ranking 162nd, is the only country in the region with a lower score.
Social Sector Investments: Pakistan’s fight against poverty (SDG 1) remains sluggish, as economic disparities widen.
The percentage of the population living below the $2.15 per day poverty threshold remains higher than in Bangladesh, which has successfully reduced poverty through sustained economic growth and social safety nets.
With the FY26 budget emphasizing social protection, targeted fiscal allocations toward employment generation, food security and inclusive financial services could help uplift vulnerable communities.
Key health indicators (SDG 3) also underscore the need for greater healthcare spending.
Despite recent improvements in maternal health, neonatal mortality and malnutrition rates remain alarmingly high.
Pakistan’s life expectancy at 66 years is significantly lower than Sri Lanka (76 years) and Bangladesh (72 years).
Malnutrition affects 18.5% of Pakistan’s population, compared to 5.9% in Indonesia and 11.2% in Bangladesh while obesity surged to nearly one-fourth of adults in 2024, the highest in the region.
Additionally, Pakistan’s education system (SDG 4) suffers from low literacy rates and weak enrollment figures.
Literacy rate at 73% is the lowest in the region after Afghanistan.
In contrast, Indonesia and Bangladesh boast literacy rates above 95%.
Pakistan’s ongoing challenges in health and education stem largely from consistently low public investment in these essential sectors.
With spending at under 3% of GDP – far below the targeted 15% – the country falls behind regional counterparts like India, Indonesia, Bhutan and Nepal, which allocate over 5%.
Prioritizing budgetary allocations for primary healthcare expansion, nutrition programs and enhanced early childhood education and skill development in the FY26 budget could yield significant long-term economic gains.
Women’s Economic Empowerment: Gender equality (SDG 5) remains a pressing issue, as challenges such as restricted access to contraception and declining female workforce participation persist.
Pakistan’s female-to-male labour force participation rate stands at 30%, trailing behind Indonesia (65%) and Bangladesh (46%).
The gender gap in educational attainment remains significant, influenced by socio-cultural norms, limited access to educational resources for women and systemic barriers that hinder women’s educational opportunities.
While Bangladesh and Indonesia have successfully integrated gender-responsive policies into their economic frameworks, Pakistan must follow suit.
Increased funding for women’s vocational training, entrepreneurship and workplace inclusivity could drive meaningful progress – making economic participation more equitable while simultaneously tackling gender-based disparities in education and healthcare.
Climate Resilience and Energy Transition: As Pakistan grapples with escalating climate-related disasters, a more robust fiscal commitment to disaster risk reduction, renewable energy expansion and sustainable urban development (SDGs 7 & 13) is crucial. 56% of Pakistan’s urban population lives in slums, facing heightened climate vulnerabilitydue to poor housing durability and limited access to healthcare, clean water and sanitation.
Access to clean cooking fuels (SDG 7) remains low, at just 50%, falling behind regional counterparts such as India, Bhutan and Indonesia.
Prioritizing these areas through strategic investment could significantly enhance resilience and improve living conditions across the country.
Moreover, Pakistan must expedite the transition from coal-based energy projects to cleaner alternatives, taking cues from regional leaders like Sri Lanka and Bangladesh.
Strengthening urban sustainability (SDG 11) demands a renewed policy push – enhancing slum conditions, expanding sanitation services and investing in resilient infrastructure, a longstanding focus under the China-Pakistan Economic Corridor (CPEC).
Exploring fiscal strategies such as broadening the tax base, minimizing exemptions and introducing climate-related levies could create additional financial space to support essential development initiatives.
Strengthening Governance and Economic Stability: Governance challenges persist, as public sector transparency (SDG 16) continues to decline.
Strengthening institutional reforms and implementing anti-corruption measures must be at the forefront of fiscal planning to ensure accountability and effective resource distribution.
Economic growth (SDG 8) also needs revitalization, with unemployment standing at 6% – a higher rate than in Indonesia and Bangladesh.
Encouraging innovation, infrastructure development and stronger labour rights enforcement should thus be central to budget discussions going forward.
Comparing Pakistan’s progress with its regional peers highlights the pressing need for bold and timely interventions.
The FY26 budget presents a crucial opportunity for the country to recalibrate its approach toward achieving the SDGs.
By prioritizing social welfare, gender inclusivity, climate resilience and governance reforms, Pakistan can fast-track its progress and close the gaps with neighbouring nations.
—The writer is Research Associate at Social Policy and Development Centre (SPDC).
