[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108317-en":3,"doc-seo-108317-105":30,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},108317,1649267921044,"Ava Thompson","https://us-avatar.wpscdn.com/avatar/1800007509477c92dfb?_k=1782875107921204101",8,"Research & Report","Human Capital Public Expenditure and Institutional Review - Building Capabilities Throughout - June 2023","Human Capital Public Expenditure and Institutional Review (June 2023) examines why Pakistan’s human capital outcomes remain low despite a young and growing population. It highlights widespread learning poverty, child stunting, and large equity gaps linked to weak institutions and inefficient spending. The review argues that improving technical and allocative efficiencies can help reduce inefficient expenditures under long-term fiscal constraints, while aligning future national and provincial finance awards with stronger incentives and accountability. It outlines an education-focused analysis on learning drivers and institutional or expenditure support for learning and nutrition.","Public Disclosure Authorized Public Disclosure Authorized  \nHuman Capital Public Expenditure and Institutional Review  \nJune, 2023  \nIntroduction and key findings  \nHuman capital is critical for sustained economic growth in Pakistan. Growth in Pakistan has been low and volatile. Since the 2000s, Pakistan’s real gross domestic product (GDP) per capita growth has been low at around 2.0 percent—almost 2.7 percentage points lower than the South Asian average. In terms of the long-term productive capacity of an economy, a growing labor force coupled with human capital development is a critical component in a country’s ability to turn inputs into outputs, innovate, and grow.  \nAlthough Pakistan continues to enjoy a young and growing population, human capital outcomes remain low. Human capital makes up 61 percent of Pakistan’s wealth, yet its levels of human capital are among the world’s lowest. About 7 percent of newborns in Pakistan do not live to their fifth birthday. Approximately 40 percent of children under 5 are stunted, relegating them to a lifetime of physical and cognitive deficits. Prior to the COVID-19 pandemic and the 2022 floods, an estimated 75 percent of Pakistani children were in learning poverty, unable to read and understand a simple age-appropriate story by age 10. Disparities across socioeconomic and geographic groups are large. Together with weak institutions, and low investment in physical capital and economic geography, these human capital shortfalls and equity gaps explain Pakistan’slow earnings, economic growth, and poverty reduction. This in turn hampers the country’s ability to increase its productive capacity, and to grow rich before growing old.  \nIn Pakistan, supporting human capital in a fiscally constrained environment needs to focus on reducing inefficient expenditures by increasing both technical and allocative efficiencies.  \nSpending on education and nutrition both remain low compared to peers. The Pakistan Human Capital Review identified numerous areas where additional investments are needed, 1 but Pakistan faces long-term fiscal deficits, increasing debt, and the requirement for fiscal consolidation over the short to medium term. Pakistan needs to find ways to improve its human capital outcomes in parallel to improving its fiscal situation, including by improving domestic revenue mobilization and reducing inefficient expenditures.  \nPart and parcel to this, is the need for dialogue on the design of future national and provincial finance awards, to ensure incentives are better aligned and inequalities are better addressed.  \nFor example, under the current system, provincial governments depend heavily on federal awards to finance expenditures. In recent years, this has resulted vertical imbalances, whereby federal government experiences fiscal deficits while provincial governments experience fiscal surpluses. The design of federal to provincial awards also provides limited incentives for provincial governments to increase collection of own source revenues. Then, provincial to district awards have limited accountability mechanisms built in to enhance service delivery. As a result, this system creates a situation of horizontal imbalances, whereby poorer districts often spend less than wealthier districts on service delivery functions like education. A forthcoming World Bank paper will look at this issue in more detail, which can inform the debate around these issues as the governments revise the awards system in the future.  \nThis paper aims to analyze how policy makers can make the “existing dollar” go further toward improving human capital outcomes—of learning and nutrition—by improving spending efficiency. This study is part of the Human Capital Review Project for Pakistan and aims  \nto complement finished and ongoing works such as the Pakistan Federal Public Expenditure Review and the upcoming Pakistan Education Expenditure Review. Further, policies to address challenges associated with macroeco","cbCaikzKT3QGj80w","https://ap.wps.com/l/cbCaikzKT3QGj80w","pdf",370388,5,1,9,"English","en",105,"# Introduction and key findings\n## Human capital challenges and equity gaps\n## Fiscal constraints and spending efficiency\n## Finance awards and institutional incentives\n## Study scope and complementary work\n## Education, learning, and key drivers","[{\"question\":\"Why does the report emphasize human capital for Pakistan’s growth?\",\"answer\":\"It links human capital development to a country’s ability to convert inputs into outputs, innovate, and sustain economic growth, especially in Pakistan where growth has been low and volatile.\"},{\"question\":\"What human capital outcomes does the report highlight as particularly weak?\",\"answer\":\"It cites high child mortality before age five, widespread stunting among under-5 children, and extensive learning poverty before age 10, with major disparities across socioeconomic and geographic groups.\"},{\"question\":\"How does the report suggest improving outcomes in a fiscally constrained environment?\",\"answer\":\"It argues for reducing inefficient expenditures by raising both technical and allocative efficiencies, while improving revenue mobilization and redesigning incentives and accountability in future finance 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