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Arfa Abdul Razzaq

Development Challenges of Pakistan

Published on: September 18, 2025 6:13 AM

September 18, 2025 by Arfa Abdul Razzaq

Glancing at the World Bank’s statement or the IMF’s review of the EFF in May 2025, things could not seem more rosy. With a real GDP growth rate of 2.7%, inflation falling to 4.7%, lower interest rates at 11% and a current account surplus, Pakistan’s fiscal performance has been labelled “strong,” with policymakers cheering the macroeconomic rebound their policies have brought about. However, a cursory look at the streets reveals that ordinary Pakistanis do not share this enthusiasm at all. Instead, a horrifying reality emerges, filled with starvation, homelessness, poverty, child malnutrition, and illiteracy. Coupled with nationwide floods and torrential rains, the situation has turned dire for people all over the country.

What, then, is the purpose of such economic growth if it fails to positively impact human development and is merely numbers on a computer? What message is a citizen supposed to take away when he sees his house and possessions swept away, while men sitting in high offices expound upon the genius of their economic measures? And why is it that Pakistan has been unable to maintain sustainable economic growth and push human development for the past 78 years? It is questions like these that Jamil Nasir’s magnum opus Development Challenges of Pakistan: Constraints and Choices seeks to answer.

As Alain de Botton aptly notes, civilizations invest overwhelmingly in technical skills while neglecting emotional development yet emotional ignorance underpins many personal and national crises.

Starting strong by linking sustainable economic growth to inclusive, equitable development, the author rightly points out the critical need to invest in human capital. Rejecting the notion that short-term macroeconomic indicators reflect actual development, he instead chooses to focus on Human Development Indicators such as universal access to quality education and healthcare, multidimensional poverty, and gender inequality. Spread over 470 pages with 15 chapters and three case studies, the book gives an overarching view of the countless challenges to human resource development in Pakistan.

Stressing the fact that 25 million children remain out of school, with only 11% of the population attaining university-level education, the writer highlights the importance of investing in education to build human capital for sustained growth. Similarly, he emphasises the importance of universal, accessible, quality healthcare in reducing inequalities and contributing to healthy individuals who can drive equitable growth. Underscoring the need to eliminate inequalities, he argues that gender, class, land, and urban-rural disparities increase poverty and reduce labour force participation, further hindering growth. He also identifies structural and institutional inefficiencies-such as poor public-sector performance, bureaucratic corruption, elite capture, rent-seeking, over-reliance on foreign aid, a mismanaged judicial system, and a weak security situation-as major obstacles hampering human development.

Nasir then suggests the need for a paradigm shift: away from elite-driven, growth-first policies to people-first policies. To this end, he proposes measures such as universal quality education, functioning public healthcare, land reforms, strong institutions, transparency, accountability, eliminating inequalities, reforming the judiciary, modernising the civil service, broadening the tax base, and diversifying exports. Long-term growth without people-centric development, he argues, is impossible, and this is why Pakistan has endured 78 years of chaotic, unstable, and unsustainable economic cycles.

The thesis of the book is highly appealing, serving as a wake-up call for policymakers. Utilising a multidisciplinary approach, the writer draws on sociology, economics, politics, and law to strengthen his arguments. He also draws on personal experiences as a civil servant, giving the work an insider’s credibility. The three case studies are particularly fascinating, touching upon little-discussed topics. The extensive citations and references, along with engagement with works like Banerjee and Duflo’s Poor Economics and Sen’s Development as Freedom, make this book a treat to read. Apart from Chapter 13, Weak Fiscal and Trade Capacities, which is heavy on technical jargon, the prose is accessible and easy to follow.

However, certain aspects require deeper contemplation. In the preface, for example, the writer dismisses the argument that military-dominated leadership constrains growth, stating that the 1990s were disastrous despite democratic rule. Yet, Pakistan has rarely experienced true democracy, with no elected government completing a full term since independence. Feudal patronage and “electables” dominating the political landscape suggest that genuine democratic rule has never fully taken root, making the growth-democracy link difficult to judge. Similarly debatable is the statement in Chapter 4 that societies preferring engineering education grow faster than those producing more lawyers, based on a 1991 paper. A 1992 Cambridge study questioned this claim, and the author’s conviction that only “productive knowledge” like STEM fields matters for growth is highly contentious. It risks reducing education to a utilitarian tool for employment, ignoring its role in building character and emotional intelligence. As Alain de Botton aptly notes, civilisations invest overwhelmingly in technical skills while neglecting emotional development-yet emotional ignorance underpins many personal and national crises.

The book also overlooks key factors: the nature of the Pakistani state, vested interests in policymaking, institutional overreach, and the failure to maintain separation of powers-all of which significantly undermine development. Furthermore, while the proposed solutions are admirable, they often lack targeted, evidence-based grounding. Importing models from abroad without tailoring them to Pakistan’s realities risks failure. Nonetheless, this book is an indispensable resource for students, researchers, aspiring policymakers, and current leaders alike. Its sharp focus on people-centric growth and consistent advocacy for human development fills a void in Pakistan’s economic discourse. One can only hope it steers lawmakers, policymakers, and media away from narrow growth metrics and towards sustainable, people-first development. As Edward Abbey wisely observed, “Growth for the sake of growth is the ideology of the cancer cell.”

The writer is a civil servant working at the Press Information Department, Karachi.

Filed Under: Op-Ed

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