International experts emphasise that while economic growth is crucial for development, it alone is not enough to improve prosperity or alleviate poverty. In recent years, social protection has gained significance as a vital tool in poverty reduction, with increased investments in low- and middle-income countries.
Pakistan stands out among developing nations by enshrining social security as a fundamental right in its Constitution. Article 38 mandates the state to ensure social security, housing, food, healthcare, clothing, and education for all citizens, without discrimination based on caste, race, creed, or gender.
| Human Development Index With Components | ||||||||
|---|---|---|---|---|---|---|---|---|
| Country/ Region |
HDI Rank |
Human Development Index (HDI) Value (2022) |
Average Annual HDI Growth (%) [1990-2022] |
Life Expectancy at Birth (years) |
Expected Years of Schooling (years) |
Mean Years of Schooling (years) |
Gross National Income (GNI) per capita (2017 PPP $) |
Inequality-adjusted Human Development Index (2010-2022) |
| SDG-3 | SDG-4.3 | SDG-4.4 | SDG-8.5 | Gini-coefficient | ||||
| World | – | 0.739 | 0.65 | 72.0 | 13.0 | 8.7 | 17,254 | – |
| South Asia | – | 0.641 | 1.15 | 68.4 | 11.9 | 6.6 | 6,972 | – |
| Sri Lanka | 78 | 0.780 | 0.62 | 76.6 | 13.6 | 11.2 | 11,899 | 37.7 |
| Iran | 78 | 0.780 | 0.76 | 74.6 | 14.1 | 10.7 | 14,770 | 40.9 |
| China | 75 | 0.788 | 1.55 | 78.6 | 15.2 | 8.1 | 18,025 | 37.1 |
| Maldives | 87 | 0.762 | – | 80.8 | 12.2 | 7.8 | 18,847 | 29.3 |
| Bhutan | 125 | 0.681 | – | 72.2 | 13.1 | 5.8 | 10,625 | 28.5 |
| Bangladesh | 129 | 0.670 | 1.63 | 73.7 | 11.9 | 7.4 | 6,511 | 31.8 |
| India | 134 | 0.644 | 1.24 | 67.7 | 12.6 | 6.6 | 6,951 | 34.2 |
| Nepal | 146 | 0.601 | 1.32 | 70.5 | 12.6 | 4.5 | 4,026 | 32.8 |
| Pakistan | 164 | 0.540 | 0.99 | 66.4 | 7.9 | 4.4 | 5,374 | 29.6 |
| Afghanistan | 182 | 0.462 | 1.53 | 62.9 | 10.7 | 2.5 | 1,335 | – |
| Source: UNDP Human Development Report-2023/2024 | ||||||||
A Government of Pakistan report highlights social protection as a key factor in creating a fairer, more prosperous society. It serves as a buffer against poverty, unemployment, and illness, while fostering inclusivity and sustainable development. Social protection strengthens social cohesion, reduces inequality, and empowers individuals, contributing to economic stability and resilience. It is a cornerstone for achieving equity and promoting a brighter, more inclusive future.
Our country faces various economic and human development problems, like inflation, rising electricity and gas prices, severe climate disruptions, and inadequate public funds to address development and climate adaptation needs.
These problems hinder economic growth, innovation, and investment opportunities. Children from low-income families often have to choose between education and employment, leading to illiteracy and limited prospects. Statistics showed that the expenditures within the Poverty Reduction Strategy Paper (PRSP) have continued to rise across 14 sectors, showing a strong commitment to prioritizing public spending aimed at helping the underprivileged.
According to the statistics, the expenditures reached at 7.1 per cent of GDP in 2018-19, 7.9 per cent in 2019-20, 7.6 per cent in 2020-21, and 8.4 per cent in 2021-22. In 2022-23, the total expenditures in these sectors reached Rs 6,199.7 billion, which was 7.4 per cent of GDP. These statistics demonstrate the government’s unwavering dedication to implementing a sustainable plan to alleviate poverty. Furthermore, the repeated IMF programmes structural adjustment measures aimed at stabilising the economy, counting significant reductions in fiscal and current account deficits, have resulted in increased taxes, mainly on consumption, reduced public spending, especially on social services and development projects, and the gradual elimination of subsidies. These measures limit economic opportunities, increase the cost of living, and further lower the living standards of the impoverished population. It is recorded that the UNDP’s World Economic Situation and Prospects 2024 report states that despite policy uncertainties and monetary tightening, the global economy explained unexpected resilience in 2023, thanks to strong labor markets and easing inflation. However, conflicts and climate-related shocks persist, hindering sustainable development progress.
The report also highlights some problems that affect the debt-laden global economy, such as elevated borrowing costs and tightened credit conditions, which necessitate increased investment and comprehensive social protection measures to mitigate the impacts on vulnerable populations.
In 2022, Pakistan’s Human Development Index (HDI) value was 0.54, ranking 161 out of 192 countries worldwide. By 2023, Pakistan has dropped three places to 164 due to persistent social, economic, and political pressures, counting macroeconomic problems and the effects of the 2022 floods. The report also recorded that a widening human development gap, reversing the two decade trend of diminishing inequalities between wealthy and poorer nations. This gridlock hinders human development, amplifies polarization, and reduces trust in people and institutions worldwide, particularly regarding collective action on climate change, digitalization, poverty, and inequality. The report also recorded that Switzerland is qaranked first in human development, with Norway and Iceland following closely in second and third place. However, within the South Asian region, Pakistan’s HDI ranking is lower than that of India (134th), Sri Lanka (78th), Bangladesh (129th), Maldives (87th), Nepal (146th), and Bhutan (125th). Afghanistan trails behind at 182nd place. Pakistan has a life expectancy at birth of 66.4 years, with expected years of schooling at 7.9 and a gross per capita national income (2017 PPP) of $5,374.