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Pakistan's Development Crisis: Why Rankings Plunge Amid Investment Gaps

Pakistan has experienced a sharp decline in its global development rankings. The country now sits at 168th out of 193 nations on the UNDP's Human Development Index. This drop is attributed to lower investments in critical sectors like health and education, alongside eroding public trust. Regional neighbors such as India and Bangladesh continue to perform better due to stronger commitments in these areas.

Key Points: Pakistan Development Rankings Fall Sharply on UNDP Index

  • Pakistan's HDI rank fell from 161 to 168, one of the steepest global declines
  • Gender Inequality Index of 0.536 shows poor female participation in key areas
  • Ranked 137th on SDG Index, signalling slow progress on global commitments
  • Global Innovation Index decline points to weak R&D investment and infrastructure
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Pakistan's development rankings drop sharply amid weak investment, governance gaps

Pakistan's HDI rank falls to 168th globally amid weak investment in health, education, and governance, lagging behind regional peers like India and Bangladesh.

"The rankings dipped sharply due to lower investments and eroding public trust. - European Times Report"

New Delhi, Dec 13

Pakistan has fallen sharply in global development and innovation rankings due to persistent weaknesses in health, education, governance and economic resilience, a new report has said.

The rankings in these fronts dipped sharply due to primarily lower investments in these sectors and eroding public trust, according to the report from European Times.

The country fell to 168th rank out of 193 nations on the UNDP Human Development Index in 2025 with a score of 0.544, and its inequality‑adjusted HDI drops to 0.392, the report said.

The Gender Inequality Index, at 0.536, reflects poor female participation in education, the labour force, and politics. Pakistan's HDI ranking has declined from 161 in 2020-21 to 168 in 2025, one of the steepest falls globally, the report added.

Regional peers such as India, Bangladesh, and Sri Lanka continue to perform better, largely due to stronger investments in education, health, and governance, the report from European media house said.

On the Sustainable Development Goals Index 2024, Pakistan ranked 137th out of 166 countries with a score of 57.02, signalling slow progress on global developmental commitments.

All these factors collectively impose harsher constraints on the economy, raising the cost of public service delivery, and eroding Pakistan's credibility among foreign creditors and investors, according to the report.

Further, the decline in Global Innovation Index (GII) 2025, proved the country suffered from limited investment in research and development (R&D), weak infrastructure, and policy inconsistencies.

Analysts said that Pakistan must prioritise long-term investments in R&D, strengthen governance and anti-corruption frameworks, align education with industry needs to improve its global standing.

In another recent report, analysts said the International Monetary Fund's (IMF) approval of a $1.2 billion tranche for Pakistan will help the country avoid immediate default on foreign debt repayments but is unlikely to ease the squeeze on mainstream households.

It highlighted structural problems such as trade deficit, impending foreign-exchange crisis and internal political discord.

- IANS

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Reader Comments

P
Priya S
The Gender Inequality Index score of 0.536 is heartbreaking. So many women and girls are being left behind. Development is impossible without half your population. India has made progress here, but we still have a long way to go too. This should be a wake-up call for the entire region.
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Rohit P
IMF bailouts are just a temporary fix. The report nails it - structural problems like trade deficit and political discord need solving. You can't build a stable economy on foreign debt. Bangladesh's growth story shows what's possible with better governance. 🇮🇳
S
Sarah B
As someone who follows development economics, the drop in the Innovation Index is critical. No R&D investment means no future-ready workforce. It creates a vicious cycle. The contrast with regional peers mentioned in the article is stark. Hope for a turnaround.
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Vikram M
While the report highlights Pakistan's situation, we in India must not be complacent. Our ranking is better, yes, but issues like public service delivery and credible governance are universal challenges. We should focus on fixing our own gaps rather than just comparing.
K
Karthik V
Eroding public trust is the root cause. When people don't believe in the system, everything falls apart. The report says it raises the cost of everything. It's a lesson for all democracies, including ours. Good governance isn't a luxury, it's the foundation.

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