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Economic gains of health

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27.09.2026

PAKISTAN’S economic debate revolves around familiar topics like increasing GDP, attracting investment, boosting exports and creating jobs. However, a vital question often overlooked is: how much economic potential are we forfeiting due to inadequate investment in our people? This is arguably one of the most pressing issues Pakistan must address. Health, nutrition, population and human development are still largely considered social sector concerns – certainly important but competing with the “real” economic priorities of energy, infrastructure, industry and finance. This distinction is becoming increasingly untenable.

A child suffering from malnutrition, a young person lacking essential skills, a worker disabled by preventable disease or a productive adult dying prematurely isn’t just a human tragedy; it’s also a loss of human capital, productivity and national income. Pakistan’s Human Capital Index stands at a mere 0.41, compared to 0.48 for South Asia. This means a child born in Pakistan today is expected to achieve only about 41% of the productivity potential achievable with complete education and optimal health. This isn’t just a social statistic; it’s an economic loss.

The economic impact of human underinvestment is not theoretical. World Bank analysis reveals that undernutrition costs Pakistan approximately 3% of GDP growth annually due to productivity losses. Another study estimates that inadequate sanitation costs Pakistan 3.9% of GDP, with most of these losses stemming from health-related consequences. At a GDP of roughly US$407 billion, 1% equates to approximately US$4.1 billion. Consequently, the estimated productivity loss attributed........

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