UNDP HD Index: Pakistan ranks 168th out of 193 countries

ISLAMABAD: The Ministry of Planning, Development and Special Initiatives on Friday informed the National Assembly during the Question Hour that Pakistan has been ranked very low on the UNDP Human Development Index (HDI), placing 168th out of 193 countries.

Pakistan was ranked 161 in 2020–21 and 164 in the HDI Report 2023–24. In the latest 2025 report, the country has slipped further to 168th.

In a written reply to a question by Dr Shazia Sobia Aslam Soomro, the ministry stated that Pakistan’s ranking has declined due to persistent social and economic pressures, including macroeconomic challenges and the lingering impact of the 2022 floods. The fall is also attributed to insufficient investment in education and healthcare, a high debt burden, and a narrow tax base. Responding to another question by Dr Shazia, Minister of State for Economic Affairs Chaudhry Armaghan Subhani said Pakistan’s HDI indicators had weakened due to macroeconomic pressures, floods, and low income-tax contributions, terming the situation concerning. Despite health and education being provincial subjects, he said the government was establishing 12 Danish Schools under the Uraan Pakistan Programme to improve access to quality education. Under the Public Sector Development Programme (PSDP), 12 Danish Schools have been approved, while 10 more are in the pipeline.

Deputy Speaker National Assembly Syed Ghulam Mustafa Shah referred the matter of Pakistan’s HDI decline to the relevant standing committee for further examination.

Responding to a question from Safia Shahid Shah, Minister of State for Finance Bilal Azhar Kayani said the government was in the final stages of preparing revised rules for a strengthened whistleblower reward system as part of wide-ranging reforms underway in the Federal Board of Revenue (FBR) to curb tax evasion, widen the tax net and enhance compliance. He said the prime minister had granted in-principle approval to rework the whistleblower reward system. “The revised rules are currently under preparation,” he added.

Replying to another question by Syeda Shehla Raza, Bilal said the salaried class was paying taxes beyond its capacity, assuring that the government intends to provide them with relief once the tax net is broadened. He noted that the salaried class contributes the largest share of taxes, adding that this year too they paid the highest amount. He said the government is working on a simplified and equitable tax system to remove complexities and discriminatory practices. He added that while the current budget has provided some relief to salaried individuals, further relief will be granted once the tax base expands.

He further stated that the government is focusing on export-led growth after achieving macroeconomic stability, and is holding regular discussions with the business community to achieve this goal.