New Delhi, Dec 13 Pakistan has fallen sharply in global development and innovation rankings due to persistent weaknesses in health, education, governance and economic resilience, a new report has said.
The rankings in these fronts dipped sharply due to primarily lower investments in these sectors and eroding public trust, according to the report from European Times.
The country fell to 168th rank out of 193 nations on the UNDP Human Development Index in 2025 with a score of 0.544, and its inequality‑adjusted HDI drops to 0.392, the report said.
The Gender Inequality Index, at 0.536, reflects poor female participation in education, the labour force, and politics. Pakistan’s HDI ranking has declined from 161 in 2020–21 to 168 in 2025, one of the steepest falls globally, the report added.
Regional peers such as India, Bangladesh, and Sri Lanka continue to perform better, largely due to stronger investments in education, health, and governance, the report from European media house said.
On the Sustainable Development Goals Index 2024, Pakistan ranked 137th out of 166 countries with a score of 57.02, signalling slow progress on global developmental commitments.
All these factors collectively impose harsher constraints on the economy, raising the cost of public service delivery, and eroding Pakistan’s credibility among foreign creditors and investors, according to the report.
Further, the decline in Global Innovation Index (GII) 2025, proved the country suffered from limited investment in research and development (R&D), weak infrastructure, and policy inconsistencies.
Analysts said that Pakistan must prioritise long-term investments in R&D, strengthen governance and anti-corruption frameworks, align education with industry needs to improve its global standing.
In another recent report, analysts said the International Monetary Fund’s (IMF) approval of a $1.2 billion tranche for Pakistan will help the country avoid immediate default on foreign debt repayments but is unlikely to ease the squeeze on mainstream households.
It highlighted structural problems such as trade deficit, impending foreign-exchange crisis and internal political discord.
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