Isn’t the fault actually in our stars?

In the previous article, the current situation of Pakistan’s declining HDI ranking was discussed through facts and figures. However, it was felt that some concrete solutions should also be provided in detail, as these are at the very heart of policy writings.

Although it was tried to cover as much as in the previous piece, but due to the paucity of space, it was not done in detail. Before prescribing any solutions, understand the problems is a prerequisite – and that begins with presenting the facts. No viable solutions can be offered without diagnosing the problems accurately. That is why mention of facts provides us with the way it ought to be. What practical solutions should be taken to address the exacerbating human development crisis in Pakistan?

Since the precarious situation of HDI in Pakistan has already been discussed, here more focus will be on the solutions. Firstly, there’s urgent need for rebalancing of national priorities. Pakistan spends around one per cent of its GDP on education (0.8 percent from July to March FY2024-25) and only 0.9 percent on health, while defence expenditure consistently exceeds both combined.

The latest Economic Survey shows that education expenditure has halved to 0.8 percent (July to March) and consistently falling from the 2 percent of 2018. Although 60 percent of the country’s population is youth and 26 million children are out of school and 40 percent of children are stunted, reducing education or health budget is sheer negligence.

Where can be the resources for education and health found? Simply by turning attention toward Pakistan’s “white elephants” – the State-Owned Enterprises (SOEs) – and elite privileges, both of which place a massive burden on the economy. Restructuring or privatising these entities would create fiscal space for investment in people. Apart from it, the government can curtail the elite capture, which is draining a substantial share of GDP. According to a UNDP report, elite privilege costs Pakistan approximately USD 17.4 billion a year, roughly 6 percent of GDP.

Interestingly, If a quarter of the wasted resources in SOEs and elite privileges is invested in human capital, Pakistan’s economy will witness unprecedented growth. Our immediate neighbour, India’s IT exports are of USD 224.4bn, while our cumulative exports are USD 36bn, showing investment priorities of both countries. Similarly, many ASEAN economies have invested in their human capital, and their success is visible to the whole world. In a nutshell, diverting resources from SOEs and elite privilege will do the trick.

How will it be done? Legislation can help in this regard. It can be achieved by following the example of South Africa, Brazil and Kenya, which have set a minimum spending on health and education. Pakistan can also set a minimum floor for human development indicators. Besides, the government has to make the social welfare programmes like BISP more effective and result-oriented; such programmes worked well in Brazil (Bolsa Família) and Mexico (Progresa).

Additionally, the government should allocate some transfers on the basis of key HDI indicators to the Provinces, such as literacy, maternal mortality, and school retention rate. The process of monitoring and accountability will also improve the situation, as the current allocated budget is misspent and is going into the pockets of a few people. In short, taking these basic steps can bring substantial enhancement in the HDI.

The question is who will bell the cat? The answer is: certainly those who make the decisions and control the purse. With Pakistan drowning in debt and facing severe fiscal constraints, there is no room for the misusing of scarce resources.

Urgent reforms are no longer optional – they are necessary. Besides, youth are the real stakeholders; they should raise their voices for better health and education because they are the ones who will bear the real brunt of inaction. Also, social activists and pressure groups can work to obtain the desired results.

Of course, facts are known but repeating them reminds us of the grave situation that the citizens of the country are going through. Behind every worst statistical number there is a mother without healthcare, a child without school and nutrition and a young graduate without opportunity.

The country urgently needs to reframe its policies; otherwise, its future will be chained to its gloomy past. Again, the fault is not in our stars. It lies in misguided policies, political inertia, and an unwillingness to invest in our people. What the country needs now is proper governance and the courage to change its course.

Copyright Business Recorder, 2025