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Pakistan’s human capital crisis Why education is failing the economy

58 1
tuesday

Pakistan presents a persistent paradox. It occupies a strategically important location, possesses abundant natural resources and has one of the youngest populations in the region.

Yet these advantages have not translated into sustained economic growth. Instead, weak skills and low productivity continue to constrain national progress. This contradiction is clearly reflected in Pakistan’s Human Capital Index of 0.41, indicating that a child born today will realise only 41 per cent of their potential productivity, even with complete education and good health. Among South Asian countries, this places Pakistan near the bottom, raising serious concerns about the effectiveness of its human capital strategy.

Human capital development has historically been a decisive factor in economic transformation. Countries that have achieved long-term growth have done so by investing in their people. A functional education system equips individuals with the skills, adaptability and innovative capacity necessary to enable economies to respond to changing technological and market conditions. In productivity terms, education converts demographic potential into economic output. Pakistan’s education system, however, has struggled to fulfil this role. A growing mismatch between educational outcomes and labour-market requirements has weakened productivity and limited economic competitiveness. While global economies are restructuring education to align with technological change, Pakistan’s system remains largely static. Curricula, teaching methods and institutional priorities have not evolved in line with modern economic demands.

One of the most visible shortcomings is an outdated curriculum. Pakistan’s education content offers limited exposure to digital........

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