According to the latest Human Development Index (HDI), Pakistan has fallen into the low development category, having dropped 4 places in the ranking to 168 out of 193 countries. HDI shows the socio-economic development of a nation with its three major indicators: health, education, and living standards. The lower ranking of HDI means that all the mentioned indicators are in bad condition. Overall, the low HDI means poor economic growth in the future.
The 2025 Human Development Report (HDR) entitled “A matter of choice: People and possibilities in the age of Artificial Intelligence” says: “For decades, we have been on track to reach a very high human development world by 2030, but this deceleration signals a very real threat to global progress. Amidst this global turmoil, we must urgently explore new ways to drive development. As Artificial Intelligence continues its rapid advance across so many aspects of our lives, we should consider its potential for development.”
According to the report, the global HDI value is projected to reach a record high, but the increase would be the lowest since records began 35 years ago. The gap between very high and low HDI countries, which for decades had been shrinking, has widened over the past four years. The report also finds widening inequalities between rich and poor countries. For the fourth consecutive year inequality between Low HDI and Very High HDI countries continued to increase, according to the report. This reverses a long-term trend that saw a reduction in inequalities between wealthy and poor nations. The HDR recommends a human-centered approach to AI, which has the potential to fundamentally redesign approaches to development. It also outlines three critical areas for action: building an economy where people collaborate with AI rather than compete against it; embedding human agency across the full AI lifecycle, from design to deployment.
Pakistan has been given a Human Development Index (HDI) value of 0.544, but if adjusted for inequality, Pakistan’s HDI decreases by 33.1 percent to 0.364, while its Multidimensional Poverty Index (MPI) remains unchanged from 2023/2024 levels at 0.198. Pakistan’s new ranking marks a significant fall of 19 positions from its previous standing—one of the steepest declines globally—highlighting a sharp reversal in developmental momentum.
The core indicators show a dismal picture: life expectancy is 67.6 years; expected years of schooling are just 7.9; mean years of schooling are a mere 4.3; Gross National Income per capita stands at $5,501; the inequality-adjusted HDI drops further to 0.392; and the Gender Inequality Index is at a concerning 0.536. These statistics point to long-standing patterns of underinvestment in key sectors such as education and health, persistent income inequality and structural economic fragilities.
Pakistan fares poorly in the South Asian region. Among its peers—India, Bangladesh, and Sri Lanka—Pakistan consistently ranks lowest in every human development metric, from income and life expectancy to gender equity and educational attainment. Pakistan has one-third of its children out of school — one of the highest in the world, i.e., 26 million, and the number is growing. The country only spends 0.8 percent of its GDP on education, which is lowest in the region.
The second main pillar of HDI is health. But the health sector of the country paints a bleak picture. The expenditure on health is only 0.9 percent of GDP. With such low spending, the country is facing the problem of widespread child malnourishment and stunting — 40 percent of its children are stunted. According to UNICEF, 8 out of 10 children in the country do not receive the right quantity and type of food. Basic medical supplies are often unavailable even in emergency wards. Since the combined expenditure on health and education is only 1.7 percent of GDP, it is no surprise that we score very low in living standard, which is the third pillar of the HDI?
The 2025 Human Development Report once again highlights the point that socio-economic development progress is driven by right policy choices. Countries that have advanced on the HDI ladder have done so through massive investment in human capital. For instance, Sri Lanka, despite economic difficulties, has ensured near-universal access to education and healthcare.
Pakistan’s low HDI performance is much below its potential, a result of bad policy choices in the past. The global experience shows that when people—not just productivity or profit—are at the centre of policy, development follows and people lead a happy life. As the 2025 Human Development Report makes clear, for Pakistan to move forward meaningfully on the HDI scale, it must put human development at the top of its national agenda.
Other nations such as Vietnam have used digital tools to extend public services, empowered marginalized populations, and built inclusive welfare systems to achieve HDI growth. Pakistan needs to learn from the global and regional success stories in the domain of human development.
There is an urgent need to reorient our national development strategy towards enhancing socio-economic welfare rather than GDP growth alone. To this end we should substantially increase investments in education and healthcare, particularly in rural areas.