Pakistan sacrificing education, healthcare for fiscal targets: Report

New Delhi, June 16 (IANS) 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

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