Daily Times

Inclusive wealth, a measure of Pakistan’s prosperity and sustainability that accounts for social, economic and environmental factors, has been on the rise consistently since 1992, a new UN Environment Programme (UNEP) report shows.

The report titled “Inclusive Wealth of Pakistan: The Case for Investing in Natural Capital and Restoration” assessed Pakistan’s inclusive wealth, a measure of economic and environmental well-being that includes factors typically overlooked by indicators like gross domestic product (GDP). This framework counts the social value rather than the dollar price of assets such as natural, human, and produced capital, to provide a more holistic approach to economic monitoring and management.

Between 1992 and 2019, Pakistan’s inclusive wealth increased at an average of 2.3 percent annually.

Human capital and produced capital were responsible for the bulk of the increase, growing at a rate of 2.9 percent and 3.2 percent, respectively. Unfortunately, over the same period, natural capital declined annually by 0.1 percent on average. However, the last five years have shown evidence of an environmental turnaround, with forests, grassland, sparsely vegetated areas and water bodies all growing in the area since 2015.

Shrubland and wetlands remained static, while crop land receded. Future progress will depend on ensuring more investment in natural capital.