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Publication: Pakistan’s Human Capital: Opportunities Amid Crises
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Date
2023-04-04
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2023-04-04
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Pakistan faces a human capital crisis. Its population, three-quarters of which is under the age of 35, has very recent memories of failures in the schooling system and in health services. Federal and provincial governments, as well as Pakistan’s policymakers, often cite high stunting rates, high childhood mortality, high out of school populations, and low learning levels. Gender inequality is particularly stark in education and the labor market, and all outcomes remain unequal across wealth quintiles and geographic regions. Pakistani leaders are also keenly aware of public opinion polls showing voter concerns about the lack of jobs, reflecting the low utilization of human capital. Given that better education and health translate into improved productivity, and that human capital is often the only asset for the poor, sustainable poverty reduction is unlikely to materialize without substantial investments in human capital. Improving human capital takes a long-term commitment. As a first order of business, Pakistan needs to bring population growth under control, to ensure that it can invest more in its existing population and reap a demographic dividend, rather than continue to provide low quality services to the ever-growing population. It needs to invest more in the supply of health and education services. Pakistan’s population challenge can be turned into a demographic opportunity only by improving the quality of basic services and improving human capital. And Pakistan needs to enhance female labor force participation, to ensure that families and the country can benefit from the talent available. The surest ways to reduce the population burden are to keep girls in school longer, improve health services for young women, and bring women into the labor force. With the right policies and investments, the growing working-age population can become healthier, more educated, more skilled, and more productive, and can earn more if the economy generates more and better jobs.
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“World Bank. 2023. Pakistan’s Human Capital: Opportunities Amid Crises. © World Bank. http://hdl.handle.net/10986/39628”
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