Pakistan is trailing behind its regional neighbors in critical areas like exports, education, and healthcare spending, according to a report by ProPakistani. While neighboring countries like India, Bangladesh, and Sri Lanka show significant progress, Pakistan’s performance has been underwhelming, raising concerns about the country’s economic and social priorities.
Decline in Export-to-GDP Ratio
Over the years, Pakistan’s export-to-GDP ratio has witnessed a sharp decline.
- In 2010, exports contributed 13% of the GDP.
- By 2024, this figure has fallen to 10%, showcasing a decade-long stagnation.
In contrast, regional peers have outperformed Pakistan:
- India: Exports constitute 22% of its GDP.
- Bangladesh: Reports a 13% export-to-GDP ratio.
- Sri Lanka: Stands at an impressive 27%.
- The average for other regional countries is around 27%, highlighting Pakistan’s lagging performance.
Social Sector Spending: A Growing Concern
Pakistan’s allocation to critical sectors like health and education also paints a grim picture.
Health Spending
- Pakistan invests a mere 0.8% of GDP in healthcare.
- Comparatively, India spends 1.1%, and Sri Lanka allocates 1.9% of their GDP to health services.
Education Spending
- Pakistan dedicates 1.9% of GDP to education.
- This is less than half of India’s 4.1%, signaling a pressing need for increased focus on educational reforms.
A Call for Strategic Reforms
Pakistan’s low export contribution and inadequate spending on health and education underscore the need for immediate structural reforms. To compete regionally and globally, the country must:
- Boost exports by diversifying products and markets.
- Increase investments in education and healthcare to foster human capital development.
- Adopt policies that drive sustainable economic growth and improve social sector performance.
The current trends emphasize the urgency for Pakistan to realign its priorities, focusing on exports and social development. With strategic planning and efficient resource allocation, Pakistan can close the gap with its regional peers and achieve sustainable progress.
