Pakistan Falls Further in Latest Global Human Development Index Rankings

Pakistan has dropped to 168th place out of 193 countries on the UNDP Human Development Index (HDI), according to a briefing given by the Ministry of Planning, Development, and Special Initiatives to the National Assembly during Question Hour. The ministry noted that Pakistan’s ranking has declined steadily, moving from 161 in the 2020–21 report to 164 in the 2023–24 edition, and now to 168 in the 2025 report.

The decline in Pakistan’s HDI ranking was attributed to ongoing macroeconomic pressures, the widespread damage caused by the 2022 floods, continued underinvestment in education and healthcare, a narrow tax base, and a heavy debt burden that limits public development spending. Minister of State for Economic Affairs Chaudhry Armaghan Subhani described the drop as deeply concerning and said the weakened HDI indicators reflect the broader economic and social challenges facing the country.

The government outlined ongoing initiatives to improve human development outcomes, including efforts to expand access to quality education. Under the Uraan Pakistan Programme, twelve Danish Schools have been established, and ten more are planned under the PSDP. Deputy Speaker Syed Ghulam Mustafa Shah referred the matter to the relevant standing committee for detailed examination.

During the session, Minister of State for Finance Bilal Azhar Kayani also informed lawmakers that the government is finalizing reforms to strengthen the whistleblower reward system as part of wider changes at the Federal Board of Revenue. These reforms aim to curb tax evasion and increase the tax base, and have already received in-principle approval from the prime minister.

Kayani acknowledged that the salaried class is currently paying more than its capacity and remains the largest contributor to the national tax pool. He said the government aims to provide relief once the tax system becomes broader and more equitable. He added that with economic stability improving, the government is now shifting its focus to export-led growth and is holding regular consultations with the business community to support this transition.