INP-WealthPk

Pakistan Developing Its Social Sector for Sustained Economic Growth

April 21, 2022

By Samia Khalid ISLAMABAD, April 21 (INP-WealthPK): Pakistan is trying to reach the required level of social sector development to overcome risks to its economic growth mounting from both domestic and external factors, reports WealthPK. Every country in the world is working to boost its social sectors in order to achieve quick economic growth. The most important social indices are education, health, employment and gender equality. However, economic growth can be slowed by social issues such as poverty and income inequality. It is widely recognised that developed social infrastructure is the key to reaching a high level of sustainable growth, but the sector has often not been accorded the right priority or it suffers from faulty programme design, ineffective implementation, or, in some cases, a combination of all of these factors. The social sector approach to growth policy hinges on human development and human welfare. According to the Labor Force Survey of Pakistan 2020–21, the number of employed people in the country rose from 64.03 million in 2018 to 67.25 million in 2020–21, with an increase of 1.6 million people in the labour force per year. Employment in the agriculture sector is recorded at 37.4%. Similarly, the services sector was recorded at 37.2% and industry at 25.4%. In the health sector, the government has introduced the Sehat Sahulat Program by issuing health cards for free medical care. It is a game-changer in social welfare reform, guaranteeing that designated poor residents across the country receive their legally mandated medical health care in a timely and dignified way, free of charge. The goal is to invest in low-income communities, offering better health care and assisting them in improving their living conditions. The government has approved the Ramadan Relief Package-2022, involving a subsidy of Rs8.2 billion. Under the Kamyab Pakistan Programme, the government has announced Rs407 billion in subsidised loans that would be given to the youth, farmers, and low-cost housing in the next two years. Under the Ehsaas Kifalat programme, the government has increased the six-monthly stipend from Rs12,000 to Rs14,000 for eight million poor women across the country. Under the Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-YES), the government has disbursed Rs33,860 million till January 2022 to the youth for businesses. The government announced a graduate internship stipend of Rs30,000 per month and allocated Rs2.6 million in scholarships worth Rs38 billion. The Bureau of Emigration and Overseas Employment has registered 66,011 emigrants during February 2022 for overseas employment in different countries. The government is trying to reach the required level of social sector and physical infrastructure development to overcome the risks to economic growth mounting from both domestic and external factors. As a result, development expenditures (PSDP) increased by 37.1% to Rs362 billion in July-January FY2022, up from Rs 264 billion in the same period the previous year (Source: Ministry of Finance) The government has launched a National Gender Policy Framework, which is the linchpin of the 12th Five Year Plan (2018–23) to eliminate poverty and ensure sustainable development by providing equal opportunities to women in all spheres of life. The government shows a firm commitment to effective implementation of social sector development. Several effective steps have been taken towards reducing poverty and improving living standards by providing subsidised services in the sectors of health and education. Moreover, these public sector development programmes are growth strategy-oriented and target employment-enhancing opportunities. There is a need to expand the community base with strong community participation, social mobilisation through advocacy and reinforcement of information and communication to promote awareness. For effective implementation, all policies must be effectively monitored.