ISLAMABAD: The World Bank stated in a report that Pakistan is facing a severe human capital crisis, according to a local news channel.
In a report on Pakistan’s human capital, the bank encouraged efforts and increased major investment in human development. The World Bank research emphasized the importance of expanding investment in Pakistan’s human capital. It recommends massive investments in the education and health sectors to address challenges.
According to the report, the country’s human capital is low and has only barely improved over the last several decades. According to the research, despite a substantially rising population, Pakistan has made enormous progress in poverty alleviation over the last 30 years.
Pakistan’s Human Capital Index
According to a recent World Bank report, Pakistan’s Human Capital Index (HCI) of 0.41 is poor in both absolute and relative terms, implying that a newborn born today in Pakistan will be only 41% as productive as they could be if they received a complete education and full health care.
As per the World Bank report, Pakistan ranks lowest among South Asian countries in terms of human capital. Pakistan’s human capital outcomes, according to the survey, are more comparable to those of Sub-Saharan Africa, which has an average HCI of 0.40. Human capital in Pakistan is similarly underutilized, owing in part to low female labour market participation.
According to the report, the country’s 20 million children have been absent from school. Malnutrition affects children on a large scale throughout the country. The report emphasized the importance of long-term human capital investment. It claimed that Pakistan has frequently proved its ability to provide excellent services on a large scale.
The report emphasizes that investing in human capital is a significant opportunity for Pakistan, as well as a very safe alternative. Beginning with a low baseline allows Pakistan to focus on the fundamentals of great health and education governance.
