Need to invest in people

Pakistan has registered another poor showing in the World Bank's Human Capital Index Plus (HCI+), ranking 130 out of 174 nations and well behind the average for lower-middle-income countries. The index, an expanded measure that reflects not just childhood survival and schooling but also adult health, nutritional status and learning quality, now pegs Pakistan's productivity potential at a mere 0.35 on a scale where 1 represents full health and complete education. This poor showing reveals the extent of the disastrous state of classrooms, clinics and kitchens across the country.

Many of these wounds are self-inflicted, with plenty of blame to go around for the government and the private sector. The high rate of stunting among children is a major example. Stunting refers to stunted growth and development in children caused by malnutrition and chronic diseases. Both of these conditions can be eliminated through government investment in health and social services, namely free and accessible neonatal and pediatric healthcare services, and free school meals. Free meals also have the added benefit of being a proven way to increase enrolment and reduce healthcare costs by improving public health, provided the food is hygienic and nutritious. It is unsurprising that education is also the indicator on which Pakistan performed worst, relative to world averages.

At the same time, we are stuck in a dangerous 'skill trap', as 95% of self-employed workers are in low-skill occupations with no potential for promotion or improvement. Coupled with a large, illiterate population, this means millions of people will never move up the income ladder, and are more likely to slide down as they get older and younger workers take their jobs. But even in the private sector, job training is almost nonexistent, with workers expected to learn on the job. This leads to workers who know nothing beyond their own daily tasks, making them qualified for their roles, but skill-poor in an evolving job market. They can't grow themselves or their companies, unfortunately turning into a roadblock to growth, rather than a bridge.