Among the many formidable challenges facing Pakistan, a serious one is the human capital crisis. For decades Pakistan has neglected to develop its immense human resource with the result that its youth bulge is becoming more of a liability than an asset.

A recent World Bank report shed ample light on this aspect of Pakistan’s existential crisis. The report titled ‘Pakistan Human Capital Review (HCR)’ underlines the need for Pakistan to take immediate steps to increase investments in human capital improvement to address the large gaps in education and health outcomes. Human capital investments are low across the entire economic cycle, with even the most economically advantaged groups in Pakistan having lower human capital outcomes as compared to less economically advantaged groups in peer countries.

Presenting a wealth of time-lined data, the report spotlights Pakistan’s human capital crisis in its multifarious dimensions. Pakistan’s Human Capital Index (HCI) score of 0.41 means that a baby born in Pakistan is only 41% as productive as he/she could be if they enjoyed complete education and full health. It should be a matter of concern for us that Pakistan’s HCI is lower than the South Asian average of 0.48, with Bangladesh at 0.46 and Nepal at 0.49. Indeed, Pakistan’s human capital score is closer to Sub-Saharan Africas, which has an average HCI of 0.40.

Compared to its peers, Pakistan fares badly in terms of educations, health and gender parity. Given a low female labour force participation rate, over 20 million school-age children out of school and high levels of child malnutrition, Pakistan’s human capital challenges are among the most formidable in the world.

The human capital crisis not only retards the pace of current economic progress but it also casts a shadow over the prospects of future growth. According to the report, if Pakistan continues on “its current trajectory in human capital development, its GDP per capita would grow overall by a mere 18 per cent through 2047, the 100th anniversary of its founding.

Human capital constitutes over 61pc of Pakistan’s wealth, yet its levels of human capital are among the world’s lowest. Before the Covid-19 pandemic and the 2022 floods, an estimated 75pc of Pakistani children were in educational poverty, unable to read and understand a simple age-appropriate story by age 10.

The report emphasizes that if Pakistan can boost human capital investments and its HCI value to the level of its peers, per capita outcome could grow by 32pc. But if Pakistan improves both its human capital and its use of human capital, bringing adults into employment outside farming, GDP per capita could rise by 144pc, eight times more than at present.

According to the World Bank report, Pakistan can achieve its economic goals in a short time by bringing its population growth rate under control, pumping more funds especially in the health and education sectors and empowering women through self-employment and other means. The report says that while the country has reached middle-income status, low human capital development stands in the way of further progress. Strong human capital is essential for sustainable economic growth, to prepare the workforce for the more highly skilled jobs of the future, and to compete effectively in the global market.

The sad fact is that Pakistan’s human capital has improved only marginally over the past three decades, because successive governments have neglected this aspect of national policy. If human capital development needs are given adequate attention, not only will the economy get a boost but it will be put on the path of all-round and inclusive growth. Over time, there will also be reduction in poverty and inequality which sap the strength of the national economy.

The way forward for Pakistan to boost its human capital is to formulate a long-term plan for multi-sectoral action. A priority sector is family planning which should encompass all human development initiatives. Another urgent need is skill development so that labour can become more productive both in industry and agriculture. A concomitant need is to invest more in education and training of workers, fight child malnutrition and reduce the number of out-of-school children. For, without a healthy, skilled, and resilient population Pakistan cannot achieve high and sustainable economic growth. With the right policies and investments, we can make our growing working-age population healthier, more educated, more skilled, and thus more productive.