Rethinking development: from growth to human well-being

Pakistan, with a population exceeding 250 million and an annual growth rate of around 3%, stands at a critical juncture. More than 60% of its citizens are under 30 — a demographic dividend that could propel the nation toward prosperity if supported by education, skill development and strong institutional frameworks. Historically, development was measured almost exclusively in economic terms. Progress was equated with GDP growth and per capita income. During Ayub Khan's era, the economic theory of "social greed" promoted free enterprise, arguing that wealth generated by a few would trickle down to the masses. In reality, wealth was concentrated in the hands of a small elite controlling industries, banks and capital, while the majority of citizens remained impoverished. Public frustration erupted in the slogan, Roti, Kapra aur Makaan, forcing political change. The lesson is clear: economic growth alone cannot guarantee social welfare or equity. Scholars such as Dr Mahbub Ul Haq described this as "islands in an ocean of poverty", highlighting persistent inequality even amid national progress. Dr Amartya Sen went further, arguing that society should evaluate development based on real freedoms — or capabilities  people have to live lives they value, not just income or aggregate happiness. Modern development thinking has embraced this human-centred approach. Mid-20th-century economic orthodoxy — championed by figures like Gustav Papanek — prioritised rapid GDP growth, capital concentration and the notion that individual self-interest drives prosperity. Alternative models now emphasise sustainable development and human well-being, recognising that material accumulation alone does not guarantee equitable growth or social stability. Yet in Pakistan, the ground reality is stark. According to the World Bank, 45% of the population lives below the poverty line. Literacy rate stagnates at 62%, while approximately 22 million children are out of school; education expenditure accounts for only 1.7% of the GDP. Public healthcare spending remains below 1%. Pakistan is blessed with one of the youngest populations, but job creation has not kept pace. An estimated 0.8 million Pakistanis emigrated for work in 2024 alone, indicating declining domestic opportunities. Women constitute nearly half of Pakistan's population, yet they continue to face significant social, economic and political disadvantages. According to the World Economic Forum's Gender Gap Report, Pakistan ranks last. Girls account for 12-13 million out-of-school children, according to the Ministry of Education. According to the World Bank, women only account for 21-22% of the labour force. Recent modelled estimates place Pakistan's maternal mortality ratio (MMR) in the ballpark of 150-160 maternal deaths per 100,000 live births. Whereas, according to UNICEF, around 79% of females in Pakistan do not have access to safe sanitary products. Moreover, according to a study by WaterAid UNICEF, only 17% of Pakistani girls have access to sanitary napkins, with 66% using cloth and 49% rewashing and reusing this cloth. Pakistan's public sector also illustrates systemic inefficiencies. Many organisations expanded welfare services — housing, hospitals, schools — for employees, but weak governance and administrative bloat made these programmes financially unsustainable. The path forward requires structural reforms and strategic policies that enhance efficiency without eroding welfare objectives. Pakistan needs to aggressively invest in education. Pakistan must spend 4% of its GDP on education and about 5% on health. Pakistan must ensure gender-focused development programmes and equitable access to opportunities. Pakistan has a unique opportunity to transform its demographic dividend into a genuine national asset. By learning from historical lessons, adopting human-centred and equitable development principles, and implementing forward-looking governance reforms, the country can ensure that economic growth translates into tangible improvements in citizens' lives. Ultimately, true development is more than numbers; it is about human capability, equity and opportunity. Pakistan's challenge, and its potential, lies in placing people, particularly its youth and women, at the centre of national policy.