Pakistan sacrificing education, healthcare for fiscal targets: Report
New Delhi, June 16
Pakistan is spending just 1.6 per cent of its GDP on education and healthcare combined, raising concerns over the country's long-term human development and economic competitiveness, according to a report.
A report published in The News Pakistan -- citing data from Pakistan's Economic Survey 2025-26 -- showed that public spending on education stood at 0.8 per cent of GDP, while expenditure on health was limited to 0.8 per cent, bringing the combined allocation for the two critical sectors to just 1.6 per cent of national income.
It pointed out that education spending has declined in recent years, while health expenditure has largely stagnated.
The trend could worsen under Pakistan's FY26-27 budget, which requires provinces to generate around Rs 1.9 trillion in fiscal surpluses while contributing nearly Rs 1 trillion towards federal fiscal objectives.
Since education, healthcare, water, sanitation, local infrastructure and much of social protection fall under provincial responsibilities, the arrangement is expected to leave less fiscal space for human development spending.
The country continues to struggle with weak productivity, rising poverty and deteriorating human development outcomes, according to the report.
It noted that Pakistan has entered more than two dozen IMF programmes since 1958, repeatedly achieving macroeconomic stability without delivering structural transformation.
National poverty levels have risen in recent years, while nearly four out of every 10 Pakistani children under the age of five suffer from stunting, which can result in irreversible physical and cognitive damage.
Pakistan continues to rank near the bottom of global human development indicators, with weak learning outcomes and public health metrics lagging regional peers.
Underinvestment in education, healthcare and skills development poses a serious threat to productivity growth, exports and long-term economic prosperity, the report said.
In addition, it questioned Pakistan's emphasis on artificial intelligence, startups and digitisation, arguing that innovation-driven economies require sustained investment in education, research, universities, skills and entrepreneurship.
— IANS
Reader Comments
As an Indian, I feel a mix of concern and empathy. The stunting numbers - 40% of children under five - are heartbreaking. This is not just a Pakistani problem, it's a human tragedy. South Asia needs to collectively prioritize human development over defense and fiscal targets. We in India must also look at our own education quality, not just expenditure numbers.
IMF programmes ke chakkar mein pura desh bekar ho gaya! (The entire country has been ruined in the cycle of IMF programs!) 24 IMF programmes since 1958 and still no structural change - what a tragedy. They need to learn from India's approach of balancing fiscal discipline with social spending. 😐
The report questions their AI and digitization focus - and rightly so! How can you build a silicon valley when your basic education system is crumbling? It's like building a skyscraper without a foundation. India has the advantage of our IITs and AIIMS, but even we must ensure basic education reaches every village first.
Yaar, this is genuinely concerning for the entire region. A destabilized Pakistan with poor human development affects everyone - terrorism, refugees, economic instability. Instead of "India vs Pakistan" mindset, we should hope they improve their education and health systems. A prosperous neighborhood benefits us all. 🤝
Respectfully, I think we should use this as a learning opportunity for India too. Our education spending as % of GDP has been stagnant around 3-3.5%, and health spending is barely 1
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.