INP-WealthPk

Human development should be prioritised for economic growth: experts

April 24, 2023

Ayesha Mudassar

Pakistan needs to focus on human development to accelerate economic growth and improve the quality of life for the public, experts said. Dr Mahmood Khalid, Research Economist at Pakistan Institute of Development Economics (PIDE), said while talking to WealthPK that continuous and efficient spending on human resource development helps build a skilled workforce, increase productivity, and raise living standards. 

To determine the level of human development, three main components -- per capita income, education level, and level of health -- need to be computed. Unfortunately, Pakistan has been performing quite poorly in these social indicators. Years of inconsistent economic policies have resulted in the deteriorating quality of education, weak health infrastructure, and declining per-capita income.

Sustainable Development Policy Institute (SDPI) Research Fellow Dr Zainab Naeem told WealthPK that investment in human resource development has boosted employment, encouraged technological adaptations, and improved life quality in the developed world. However, he said, the human development process is not encouraging in Pakistan.

According to United Nations Human Development Index (HDI) 2021, Pakistan slipped to 161st position from 154th in 2020. Switzerland tops the latest HDI, while Norway enjoys the second position. Bangladesh, Bhutan, and India are in the medium human development category. As per the HDI report, an average Pakistani receives only eight years of schooling. Life expectancy at birth is 66.1 years, and gross per capita national income is just $4,624.

Education has remained one of the highly neglected sectors in Pakistan. The allocated expenditure is insufficient, and its utilisation also needs improvement. Teacher absenteeism, inadequate school infrastructure, and inability to impart satisfactory technical and vocational education are the major problems.

Along with the declining quality of education, the country’s health system is also witnessing several challenges, including the highest infant mortality rate in South Asia with the lowest life expectancy, massively unequipped infrastructure, only six hospital beds per 10,000 people, while the doctor to patient ratio is 1:1,300.

Pakistan can learn from Singapore, a small island located in Southeast Asia, which has transformed itself into an economic powerhouse. The secret behind Singapore’s economic success is heavy investment in education and human capital development. Implementing a comprehensive social protection system and creating a business-friendly environment proved significant factors in developing the country.

Credit: Independent News Pakistan-WealthPk