Mian Najeeb Ullah
Budget is not only a financial plan but a reflection of government vision, values and priorities. It shows where resources are invested, which sectors are receiving attention and what kind of future a country hopes to build. The famous saying, “show me your budget, and I will tell your priorities.” highlights how public policies reflects a government true picture. Pakistan’s federal budget for 2026–27 has a total outlay of Rs. 18.771 trillion. Of this amount, Rs. 856 billion has been allocated to the Benazir Income Support Programme (BISP), while education—including higher education and skills development—receives only Rs 148.3 billion, health Rs. 54 billion, and science and information technology about Rs. 30 billion. These allocations raise a fundamental question: Are such limited investments in the sectors that build human capital sufficient to secure Pakistan’s long-term development, or is the country placing excessive reliance on a welfare-driven approach?
The role of BISP in supporting the poor and vulnerable families is undeniable. At a time of inflation, unemployment, economic uncertainty, BISP provides much needed relief for the needed ones to meet basic needs. However, welfare should be a bridge out of poverty, not a permanent destination. Cash transfers can ease immediate hardship, but they do not create skilled workers, entrepreneurs, engineers, scientists, or productive industries. They help people survive, but they do not necessarily help them prosper. Sustainable economic growth requires empowering citizens with education, skills”, and opportunities so that they can earn their own livelihoods and contribute to national development.
The large gap between welfare spending and investment in education, health, science, and technology is therefore a matter of concern. History shows that nations that successfully controlled poverty and achieved prosperity did so by investing heavily in human capital. They focused on education, research, innovation, skills development, and industrial growth rather than relying primarily on welfare assistance. East Asia’s remarkable transformation offers an important lesson for Pakistan. In the 1960s, Pakistan was not significantly behind countries such as South Korea, Singapore, and Malaysia. In some economic indicators, Pakistan was even ahead. South Korea was recovering from war, Singapore had few natural resources, and Malaysia was still developing its industrial base. Yet these countries made strategic choices that transformed their futures. South Korea invested heavily in education, technical training, and export-oriented industries. Singapore focused on human capital, efficient governance, and attracting investment, while Malaysia pursued industrial diversification and long-term economic planning. These countries viewed education and skills not as expenses but as investments in national prosperity. Today, South Korea is a global technological powerhouse, Singapore is one of the world’s leading financial centres, and Malaysia has become a diversified upper-middle-income economy. Their success was built on productivity, innovation, and human development rather than long-term dependence on welfare programmes..
Now, it is imperative that Pakistan must gradually shift from a consumption-based approach to a production-based model of development by investing in education, healthcare, science, technology, and skills development. Technical and vocational education should become a national priority, enabling young Pakistanis to acquire marketable skills in fields such as information technology, software development, artificial intelligence, digital marketing, e-commerce, and modern trades. Although Pakistan is already among the world’s leading freelancing nations, its vast potential remains largely untapped. A nationwide emphasis on digital skills could transform millions of young people from aid recipients into taxpayers, entrepreneurs, and wealth creators. At the same time, entrepreneurship must become a central pillar of economic policy. Small and medium-sized enterprises are the backbone of successful economies worldwide, and greater support through startup financing, incubation centers and easier access to credit can generate employment, encourage local investment, and strengthen economic growth. special attention should also be directed towards less-developed regions such as Khyber Pakhtunkhwa, Baluchistan, the merged districts, southern Punjab, and interior Sindh, where immense human potential remains constrained by limited access to quality education, technical training, and business opportunities.
Ultimately, government policies shape the destiny of nations, and budgets reflect those policies. They determine whether a country chooses dependency or empowerment, consumption or production, and short-term relief or long-term prosperity. While Pakistan must continue to protect its most vulnerable citizens through welfare programmes, lasting progress cannot be achieved through assistance alone. Sustainable development requires investing in people by providing quality education, accessible healthcare, market-relevant skills, and opportunities to innovate and succeed. The true measure of a successful welfare system is not how many people remain dependent on it, but how many are empowered to become self-reliant and productive citizens. Policymakers must therefore place greater emphasis on education, science, technology, innovation, entrepreneurship, and human capital development. The experience of East Asian economies demonstrates that lasting prosperity is achieved not merely by distributing resources for survival, but by investing in the knowledge, skills, and productivity of people. By aligning its budgetary priorities with this vision, Pakistan can unlock the potential of its youth, strengthen its economy, reduce poverty, and lay the foundation for sustainable and inclusive growth for generations to come.
