Ayesha Saba

Pakistan is working to develop its social sector to manage the mounting risks to its economic growth from both internal and external factors, says a senior official. Muhammad Mugheez Farooq, Energy Auditor at National Productivity Organisation (NPO), said while talking to WealthPK that social infrastructure provision is crucial for achieving economic development and growth.

“The most important social indices are education, health, employment and gender equality. Human development and human welfare are at the centre of the social sector’s approach to growth policy,” he mentioned. He said rural and urban low-income communities in Pakistan live in poorly serviced settlements where lack of basic infrastructure services and poor environmental conditions result in serious impacts on health, education, security and productivity. “Where public sector service delivery has failed, the rich are often able to access services privately, while the poor suffer. Over the years, little institutional reforms had been witnessed in the state’s service delivery mechanism,” he noted.

The NPO, which comes under the Ministry of Industries and Production, through its “Social Sector Development Programme”, has adopted a strategy of targeting selected rural communities to empower and promote productivity-related measures, and empowerment of women entrepreneurs through skill development, and also facilitating resource-based income generating training projects for low-income people in some selected villages in all the provinces of Pakistan including Azad Jammu and Kashmir.

“Pakistan, the second largest country in South Asia and the fifth largest in the world in terms of population, is still in its infancy stage of development. Pakistan should focus on developing the basic determinants, namely institutions, infrastructure, macroeconomic environment, and education,” he emphasised.

“To achieve that end, Pakistan will have to impart skills to its labour force (human resource) and switch from low-productive to high-productive economic activities,” he said, adding that focus on human resources must be the key strategy for Pakistan by investing in education and health.

However, he said, Pakistan has not yet developed a level of social infrastructure that can boost the country’s economy. Farooq said Pakistan’s healthcare system is under-resourced and unable to meet the needs of the population adequately. He said social protection programs are still limited in coverage and effectiveness, leaving many vulnerable individuals and households without adequate support.

According to a report of the United Nations Development Programme (UNDP), Pakistan has dropped seven places in the Human Development Index (HDI), ranking 161 out of 192 countries in 2021-2022. Farooq said unequal distribution of resources on public services across Pakistan was the main reason behind this low ranking. “It is, therefore, suggested that the government and policymakers make a feasible and non-discriminating policy to enhance the physical and social infrastructure stock in the country in order to achieve the desired goals of economic growth,” he emphasised.

“Efforts are being made by the government to implement social sector development effectively. Several steps have been taken towards reducing poverty and improving living standards by providing subsidised services in the sectors of health and education. For effective implementation, all policies must be monitored effectively,” he suggested.

According to WealthPK research, Pakistan is also exploring partnerships with international organisations and donor agencies to finance its social sector development. The World Bank, Asian Development Bank, and other international organisations are providing assistance to Pakistan to strengthen its social sector infrastructure, improve the quality of services, and increase access to basic services.

Credit: Independent News Pakistan-WealthPk