HDI Analysis of Pakistan

Assignment #1
Pakistan Economic Policy

The Human Development Index (HDI) is a summary measure of average achievement in key
dimensions of human development: a long and healthy life, being knowledgeable and have a
decent standard of living. The HDI is the geometric mean of normalized indices for each of
the three dimensions. Pakistan is ranked at 146, the same spot as last year, among the 187
countries in UN's 2013 Human Development Index (HDI)'s annual rankings, a position even
below its former eastern wing - Bangladesh, which is placed at 142 and Nepal at 145.

Country HDI Index Rank
Pakistan 0.537 146
India 0.586 135
Bangladesh 0.558 142
Afghanistan 0.468 169

Indicators
Countries
Life
Expectancy
Income
Inequality
GNI Per
Capita $ Poverty % Education
Pakistan 66.57 0.375 4652 45.59 4.73
India 66.41 0.481 5150 55.28 4.43
Bangladesh 70.66 0.396 2713 49.46 5.07
Afghanistan 60.95 0.321 1904 58.81 3.21

Pakistan Budgets normally allocate only 3% on Education and 0.8% on Health. Developed
countries spend as much as 20% of their GDP on health and education despite that most of
their populace being already educated and healthy. Natural Disasters in Pakistan are also
major source, which contributed in stagnation of the HDI rank.
In order to improve human development, Pakistan needs to invest heavily in employment,
engagement and empowerment of youth, given its huge youth bulge. Pakistan should
provide basic social services and safety nets, empowering people to live the lives they value.
Sweden introduced sickness insurance law in 1891, and Norway enacted mandatory
compensation law in 1894 at a much lower per capita income stage than where Pakistan
currently stands. Given that natural disasters and crises expose and exacerbate structural
vulnerabilities, Pakistan should invest in concrete national, provincial and community
institutions, which prepare and develop early warning systems with strong response
capacities.