Pakistan is lagging behind its regional counterparts in key economic and social sectors, with its export-to-GDP ratio and spending on critical sectors like education and health showing worrying trends.
Declining Export Performance
Pakistan’s export-to-GDP ratio has been on a steady decline since 2010, with exports now accounting for just 10% of its GDP, down from 13% in 2010. This is significantly lower compared to its regional neighbors. India’s exports make up 22% of its GDP, while Bangladesh and Sri Lanka report 13% and 27% respectively. On average, regional countries manage to achieve exports equivalent to 27% of their GDP, highlighting Pakistan’s relative underperformance in this key area.
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Underwhelming Social Sector Investment
Pakistan’s performance in the social sectors, including healthcare and education, also trails behind other nations in the region. The country allocates only 0.8% of its GDP to healthcare, which is notably less than India’s 1.1% and Sri Lanka’s 1.9%.
In education, Pakistan spends just 1.9% of its GDP, a figure that is less than half of what India invests in the sector, which stands at 4.1%. This disparity raises concerns about the country’s ability to build a skilled and healthy workforce for future growth.
Conclusion
As Pakistan faces increasing challenges in exports and social sector investments, it risks falling further behind its regional competitors, highlighting the need for urgent reforms and a stronger focus on economic diversification and social development.
