Over population is often viewed as a burden, but what if it could be turned into nation’s greatest assets? In context of PAKISTAN, the line between population crisis and abundance of human capital is drawn by education and investment.
Overpopulation is one of the most pressing and undeniable issues facing developing countries. However, another term we can use for “population” is “human capital.” Many nations struggle with a generation gap, having a low ratio of young people, leading to a shortage of manpower. As a result, these countries import labor from developing countries like Pakistan at very low wages.
Pakistan and its core issues!
One reason for these low wages is Pakistan’s literacy rate, which stands at 62.8%. However, the definition of literacy in our society is minimal, requiring only the ability to sign one’s name or read newspaper headlines. This is a weak definition compared to global standards. Consequently, our people are not fully educated; they are merely basic literates.
Despite this literacy rate, Pakistan lags behind other countries. India has a literacy rate of 76%, Bangladesh has 88%, and Sri Lanka has 92%. People become educated when they attend school, but Pakistan has the world’s second-highest out-of-school population, with 26.2 million children between the ages of 5 and 16 not enrolled in school.
Is this a budgetary issue?
Pakistan spends only 2.4% of its GDP on education, whereas China allocates 3.3%, India spends 4.6%, and even Afghanistan invests 2.9% of its GDP. Historically, countries that invest in their people and development successfully build human capital, leading to significant economic progress.
Singapore is a prime example of a country that has demonstrated the high payoff of investing in human capital. Its development strategy has inspired many other countries, although few have achieved similar results. Many elements of Singapore’s model are now considered conventional wisdom.
With an inflow of 17.8 billion U.S. dollars, the workers’ remittances increased 32.8 percent, the central bank said. The inflows were mainly from Saudi Arabia, the United Arab Emirates, Britain and the United States.
Pakistan’s service sector contributes significantly to its GDP, and remittances from overseas labor forces are substantial. However, this labor force often consists of low-skilled workers who earn low wages. This reflects our lack of focus in educating and training our people.
“In the midst of every crisis, lies great opportunity”
Remittances sent by overseas workers make up a large part of Pakistan’s GDP, and 65% of our population consists of young people. Yet, we fail to recognize this potential source of growth. The government and officials often highlight the negative aspects of overpopulation, but they neglect to acknowledge that we are rich in human capital.
If we invest, and we must have to invest, in educating and vocational trainings of our people, remittances will increase, and the standard of living will improve . Then we will able to export skillful workforce and it will definately improve the image of country. Our population can be our strength and a catalyst for economic growth in Pakistan. However, it remains a significant challenge and burden on our economy.
Therefore, is population truly a curse, or are we responsible for setting our generations on the wrong trajectory for many years? The future of Pakistan is tied to its human capital, and there is no doubt about it. It is imperative that funds be effectively channeled to the grassroots level, and there is URGENT need for reforms in human capital development sector. The time to act now- if we fail to invest in our people today, we risk compromising our future. Authorities must prioritize these reforms to pave the way for Pakistan’s progress.
About the Author:
Ayesha Akram- Graduate in Economics from Rawalpindi.
More Related Content!
Pakistan Launches First Donkey Meatpacking Plant in Gwadar!
Big changes coming to the Economy of Pakistan!
Quaid-e-Azam Muhammad Ali Jinnah: The Visionary Behind Pakistan
