World Bank says that Pakistan makes inadequate investment in human capital

World Bank has said that Pakistan's goal of becoming an upper-middle-income country by 2047 may be hindered by its inadequate investment in human capital. The Pakistan Human Capital Review warns that if the country continues on its current path of human capital development, its GDP per capita is projected to grow by only 18 percent by the 100th anniversary of its founding in 2047. This is despite human capital accounting for 61 percent of Pakistan's wealth.

The report also highlights that before the Covid-19 pandemic and the 2022 floods, an alarming 75 percent of Pakistani children were living in learning poverty, unable to read and comprehend a basic story appropriate for their age by the age of ten. These findings were reported by Dawn. 

Pakistan does not invest in human capital

The new report by the World Bank suggests that Pakistan's GDP per capita could increase by up to 32 percent if it invests in human capital and raises its HCI value to that of its peers. However, if the country were to improve the quality of its workforce and expand job opportunities beyond farming, GDP per capita could surge by 144 per cent or eight times more than under the status quo. Despite the potential benefits of investing in human capital, the report also notes that Pakistan's levels of human capital remain low and have only seen minimal improvement over the past three decades. This disparity is particularly evident between different socioeconomic groups and geographic regions within the country. 

Early childhood development outcomes in Pakistan are lagging behind those of middle-income countries, with only 40 to 59 percent of young children considered developmentally on track, according to their parents. In comparison, the average in peer countries is 75 percent, depending on the province. Shockingly, nearly 40 percent of children under the age of five in Pakistan are stunted, and 18 percent are wasted. Furthermore, less than 20 percent of children in Pakistan enroll in early childhood education programs, highlighting a major challenge for the country.