In a rapidly evolving world, Pakistan’s greatest investment isn’t in infrastructure or industry—but in the minds that will shape its future.

For better or worse, artificial intelligence (AI) is changing the world at a breakneck speed. Tectonic shifts are being felt in every sector—from services and manufacturing to trade and business. The developed world is creating new, dynamic opportunities, but at the cost of the old and established. The choices are stark: either change and adapt within a compressed timeframe or fall behind and lose.
The developed world is leading the way and unapologetically dictating the game—both within their societies and on the global stage. In doing so, they are writing new rules in which the size of governments, state-run organizations, and expenditures on causes once close to their hearts are being slashed or eliminated entirely. Cutting operational costs was once the mantra of the private sector, but it is now being embraced by governments in the first world as well.
The world’s second- and third-tier economies are falling in line. Countries with relatively better-educated manpower, political stability, and robust governance and administrative systems are better positioned to propel themselves into the new era. In contrast, those unable to invest in, harness, and develop their human resources in line with changing times risk falling behind.
Pakistan, a nation of 250 million people, stands at a crossroads in this era of planned disruptions. It has the potential to join the big game and aim for a high-growth trajectory. To achieve this, the government and private sector must work together to accelerate investment in human capital. Once the goal is set and the vision is clear, even small steps on this path to change will make a difference.
Where Do We Stand?
Let’s take a look at some of Pakistan’s key human capital indicators—health, education, and skills—to understand the magnitude of the challenge in the 21st century.
According to a World Bank report, the child stunting rate has stagnated at nearly 40 percent, while learning poverty affects more than 78 percent of school-aged children, and infant mortality exceeds 62 deaths per 1,000 births. “Many parts of the country, especially rural areas but also major cities, lack access to basic services such as clean water and sanitation.”
With 3.4 births per woman in 2022, Pakistan has the highest fertility rate in South Asia. “The number of youths entering the labor market each year is expanding at a faster rate than the total population, resulting in high youth disenchantment.”
The report states that the composition of employment has changed little over time, with much of the labor force engaged in low-productivity and often informal jobs, particularly for women. This, it explains, is due to a lack of investment in human capital.

According to a World Bank report, the child stunting rate has stagnated at nearly 40 percent, while learning poverty affects more than 78 percent of school-aged children, and infant mortality exceeds 62 deaths per 1,000 births.

The silver lining is that the World Bank has partnered with the current government on a 10-year initiative (FY 2026-35) worth USD 20 billion, focusing on six key development areas, including reducing child stunting and learning poverty. However, beyond financial support and expertise, the real driver of change must be the federal and provincial governments, working in collaboration with the private sector and social welfare organizations.
Setting Targets
To begin with, Pakistan requires a multifaceted approach to improve its investment on human capital, especially in the field of education at various levels. This involves initiatives from the government, the private institutions, and the non-governmental organizations (NGOs).  
The government has already initiated various policies and programs from its “Vision 2025” and “Uraan Pakistan” aimed at increasing literacy, access to schooling as well as to train youngsters in the latest informative technology and the artificial intelligence skills. For example, the “Uraan Pakistan”, as part of the country’s 13th five-year National Economic Transformation Plan (2024-2029), describes education as one of the main drivers of sustainable economic growth, equity, and empowerment. The government’s education initiatives aim to address systemic weaknesses, enhance access, and align education with the modern economic needs. This includes promoting quality education as a cornerstone to build a knowledge-based economy.
For this, curriculum modernization is a fundamental condition. The “Uraan Pakistan” plans to revise the curriculum for the rapidly evolving global economy, develop practical skills, promote critical thinking, and innovation rather than rote memorization. It also targets a 10 percent increase in literacy rate, which is currently hovering at around 61 percent. The biggest challenge is to put more than 25 million out-of-school children (aged five to 16 years) in schools by expanding access to primary and secondary education, particularly in rural areas and reducing the dropout rates. Special initiatives are needed for the marginalized girls and boys in Balochistan and Khyber Pakhtunkhwa (KP) as well as rural Sindh, who are lagging behind compared to students in Punjab.
Another important component of the program includes a focus on technical and vocational training. This is a must to enhance employability by equipping youth with technical skills and information technology (IT) expertise. By expanding vocational training and integrating digital skills into education, the government seeks to align it with the "E-Pakistan" initiative for digital transformation.
In line with the initiatives by the past governments, especially of President Pervez Musharraf era, the practice of sending Pakistani students to the world’s top universities for Master’s and Ph.D. degrees is also being beefed up.
The National Youth Internship Program, offering 60,000 internships, and IT training, also remains part of the initiative along with inclusive education, encouraging and facilitating women, rural communities, and differently-abled individuals.  
Building and modernizing schools in rural areas, establishing IT centers, and integrating technology-based learning and collaboration with provinces and stakeholders are also on the agenda.   
Private Institutions
While the government is fixing the direction and setting the policy framework, in urban areas, private educational institutions and their networks already are playing a significant role in providing quality-education. These institutions, often using English as the medium of instruction, cater to a growing demand for quality education in the middle- and upper-middle class families.
However, many education experts advocate for a single national curriculum across both government and private institutions to promote national cohesion and bridge the widening educational divide between privileged and underprivileged students. There are also calls to phase out the expensive Cambridge education system, which places a burden on Pakistan’s foreign exchange reserves.
Despite demands for greater scrutiny and accountability, the private sector continues to fill gaps in urban areas where the government struggles to provide due to limited resources.
NGOs
NGOs are playing a praiseworthy role in reaching underserved populations, particularly in rural areas and among women and girls.
Some of the key NGOs contributing to the education sector include The Citizens Foundation (TCF), The Hunar Foundation, Zindagi Trust, and Developments in Literacy (DIL). Many others are also making significant contributions at national, regional, and local levels.
For example, TCF is one of Pakistan’s largest educational NGOs, operating nearly 2,033 schools and educating 301,000 students, almost half of whom are female. TCF focuses on providing “low-cost, high-quality” education and engaging communities to boost literacy in underserved areas.
Similarly, Developments in Literacy (DIL) has been providing affordable education to underprivileged children and running teacher training programs to improve literacy in remote regions. Zindagi Trust transforms under-resourced public schools, such as those in Karachi, into model institutions with improved infrastructure and holistic programs like Life-Skills Based Education.
The Literate Pakistan Foundation has reached 776,848 learners across 80 districts with simple, real-life skill-based literacy programs, targeting both children and adults in rural communities.
The Hunar Foundation operates 16 institutes offering world-class skill development education, covering fields ranging from computer science and artificial intelligence to entrepreneurship.
International organizations, including the Aga Khan Rural Support Program, have supported initiatives such as literacy centers for women in Gilgit-Baltistan and Chitral in partnership with the World Bank and UNESCO.
Challenges
Despite progress, significant challenges remain, including low public spending on education, which is less than 2.0 percent of the gross domestic product (GDP). Issues such as poor infrastructure, urban-rural disparities, and cultural barriers continue to prevent many female students from pursuing education.
Rampant corruption, disregard for merit, poor teacher quality, and lack of accountability are major obstacles that the federal and provincial governments must address urgently.
On May 10, 2024, the government declared a national education emergency to tackle the crisis of 25 million out-of-school children aged 5-16 years. However, despite such announcements, progress on this front has been slow.
One of the primary reasons for the high number of out-of-school children is that many families rely on them for labor—whether in agriculture, domestic work, or low-paid jobs, sometimes even in distant cities. The World Bank notes that poverty remains a major barrier to school enrollment, particularly in rural areas.
Gender disparities further compound the issue. As of 2024 estimates, female literacy stands at 49 percent compared to 73 percent for males. In patriarchal cultural settings, especially in rural and tribal areas, boys' education is often prioritized, while girls' education remains limited. Additionally, an acute shortage of female teachers, particularly in rural areas, discourages girls from attending school.
A significant setback for the education sector came with the 2022 floods, which damaged 27,000 schools, particularly in rural Sindh and Balochistan. As of 2025, efforts to rebuild and renovate these schools are still ongoing.
Future is STEM
In Pakistan,  Science, Technology, Engineering, and Mathematics (STEM) faces numerous constraints that limit its growth despite increasing recognition of its importance for innovation and economic progress. These challenges include low funding, poor infrastructure, and policy implementation.
For instance, Pakistan allocates only 0.25-0.4 percent of its gross domestic product (GDP) to research and development (UNESCO data), significantly lower than the 2-3 percent average in STEM-focused developed nations. Unlike countries with robust STEM ecosystems, Pakistan’s private sector invests minimally in STEM research and development (R&D), relying heavily on underfunded government initiatives.
Many schools—both urban and rural, including private institutions—lack laboratories, computers, and other modern equipment. Official data indicates that more than 50 percent of public schools do not even have basic science labs, severely limiting STEM learning opportunities.
Following the 18th Amendment, education has become a provincial subject, resulting in uneven STEM policies across the country. Federal initiatives often struggle with provincial buy-in and execution.
Despite these challenges, Pakistani scientists, researchers, and tech entrepreneurs have made notable contributions to advancing education through STEM innovations—both locally and internationally. Their efforts include groundbreaking research, technological platforms, and initiatives aimed at improving educational access and quality.
Both public and private sector universities in Pakistan offer high-quality STEM education, with institutions such as NUST, COMSATS, GIK, and Karachi University’s HEJ Institute leading the way.
In the realm of technology-driven education, a recent milestone is Zahanat AI—Pakistan’s first locally developed generative pre-trained transformer (GPT) platform. Launched by Data Vault, a tech company led by Mehwish Salman Ali, this AI platform has the potential to revolutionize education by offering personalized learning tools, automating content creation, and supporting educators with advanced resources. It exemplifies how Pakistani tech entrepreneurs are leveraging AI to enhance educational outcomes.
Historically, Pakistani scientists have made a global impact in STEM fields. Dr. Abdus Salam, Pakistan’s only Nobel Laureate in Physics (1979), contributed to theoretical physics through his work on electroweak unification. While his research was foundational rather than directly educational, it inspired generations of Pakistani students and researchers to pursue STEM, elevating the nation’s academic aspirations.
From the late Dr. Salimuzzaman Siddiqui to Dr. Atta-ur-Rahman, a long list of distinguished scientists has played a crucial role in advancing STEM education and research in Pakistan.
In biotechnology, Dr. Anwar Naseem has emerged as a pioneer. Dr. Naseem’s focus is on agricultural advancements like genetically modified crops and his work is taught at Pakistani universities, where students engage with real-world applications of science to address food security.
The National Science and Technology Park (NASTP), established in Islamabad in 2017, has created a place where academia, industry, and innovators collaborate. The NASTP supports startups and research projects.
Then, the STEM Careers Program—a joint venture between the Higher Education Commission (HEC) and the Pakistan Institute of Engineering and Applied Sciences (PIEAS)—facilitates the youth to pursue STEM by preparing them for international science Olympiads and other competitions.
In computer science, Professor Shazia Sadiq has been recognized by the Australian Academy of Technology and Engineering for her research in STEM, highlighting the impact of the Pakistani diaspora. Dr. Sadiq’s work on data management and educational technology offers models that Pakistan could modify to suit its STEM curriculum.
In a nutshell, despite enormous challenges, advancements are being made, albeit slowly, on all the fronts which are vital to prepare Pakistan for the modern-day challenges in a rapidly changing world. The government, the private sector and the NGOs—all have this realization that investment in the human capital is the one and only way to leverage Pakistan’s potential and to pull it out of the current low-growth cycle. 
Pakistan has all the potential and opportunity for a great leap forward. It should not miss the boat.

The writer is an eminent journalist who regularly contributes for print and electronic media. 
E-mail: [email protected]
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