Population quality depends on skill formation, literacy rate, health and life expectancy. Population can either be an asset or liability for state based on if it is skilled or uneducated; also, population as a source of economic strength depends on states investment on human capital. The question is that whether the governmental policies & investment made on human capital such as education, health and training of the society at whole are rightly allocated & have a real purpose behind it, or it’s a mere formality fulfilment by state, and can the positive aspect of population can outweigh its negative impact or not.

The current population of Pakistan stands at 258,786,477, this shows how large the population of the country is at present; Pakistan ranks 5^th in world population. The policies of government focus more on capital which is important to some extent but not as that of human capital. This is because of the fact that the median age in Pakistan is 20.8 years, and if these young people will be deprived of human capital (knowledge, skills, education, health, training), then in the absence of this, states major asset will be in ruins, the budget for Fiscal-Year 2026-27 shows no urgency in preparing these young people for the workforce. Having examined the population statistics, Pakistan’s population is not automatically an asset or a liability. It becomes an asset only if the government makes deliberate, sustained investment in human capital.

The Pakistan’s present Budget for year 2026-27 allocated very little for the purposes of Human Capital (Education & Health). From the total of Federal Public Sector Development Programme (PSDP), the development budget is Rs1.126 trillion, only Rs187.2 billion are allocated for human capital. Whereas on the other side national highways alone got a share of Rs264 billion from the total budget which combinedly is more than of entire education, health & other purposes.

Government Minister of Planning blames the IMF for restrictions imposed, and not getting the intended budget. Even though the limitations were put on but still the government had the discretion to choose within those constraints and they opted for highways over education. Also, the matter at debate is not whether the IMF gave the intended loan or not; but the allocation of percentage of human capital in budget is too low for basic purposes, this shows the incompetency of the government policy making & bad governance as stated earlier. Under the circumstances stated, Pakistan cannot turn its population into an economic strength under current policies. However, It can only be done if the government reallocates resources from highways to education and health. The budget presented fails to prioritize human capital; investing in people is the first step for economic strength but the investment plans are not prioritised correctly.

The economic strength depends on factors like skill formation, education, & health care, these are essential element for every citizen for having a better life. These skill formations are essential as they provides a person with job opportunities, raises productivity, encourages innovation & adds competitiveness. Similarly, health increases working ability of a person, reduces illness, raises life expectancy, improves efficiency & strengthens economy. Education is crucial to economic strength as it opens opportunities, raises income, builds values, & strengthens society. These stated above factors are important because they transform population into an asset.

There are two competing views on whether population leads to economic strength. On one hand, Pakistan’s greater population and urbanization requires investment in human capital and the accumulation of education, as it extends the market by fine division of labor. ‘Increasing returns’ from skilled worker formation will increase per capita incomes and productivity, especially in the urban sector, with the rise in the effectiveness of children’s human capital. Population encourages greater specialization and increased investment in knowledge, mediated through bigger and more important cities.

The other argument states that greater population brings excessive demand for natural resources, including potable water and clean air. Population also affects per capita incomes through diminishing marginal productivity. In underdeveloped areas, it lowers the productivity of farmers in poor agricultural economies, resulting in lower per capita incomes. In developing countries where more people are linked to agriculture, resources for education are limited, and technology is basic or absent, higher population means lower per capita incomes. Greater pollution in a particular area lessens efficiency and has a negative impact on the economy. The effect of population depends on which of these forces is stronger which relates back to investment made on the human capital. Given the current budget and low investment in human capital, the negative effects dominate under which population is a liability. However, in general both views are not necessarily correct. The negative view is applicable in Pakistan’s current scenario where 16.6% of the budget is allocated to human capital. However, the positive view might be relevant in the future if reforms take place.

Therefore, state must allocate funds for human capital correctly. However, based on the budget evidence, the current government is failing to do so. The population can be turned into economic strength if coupled with investment, government should take measures to increase access to education. Population growth does not promise development as it requires investment on human capital growth simultaneously.The higher birth rate affect resourses resulting in lower per capita incomes. The government must allocate adequate fundings to healthcare in the budget. Health access is a basic necessity; hospital expenses need to be lowered because the economy cannot be strengthened without a healthy labor force. Subsidies should also be provided for awareness campaigns aimed at helping families voluntarily reduce fertility. Also, the governmental policies need to be lenient for businesses as it attracts local & foreign investment in the country which eventually will generate more jobs resulting in more productive people instead of burden to economy. Lastly, the female participation in income generating activities is essential which ultimately extends the workforce.

The question is whether Pakistan can turn its population into an economic strength or not? The article concludes that’s it cannot under the current trajectory based on three reasons. First, the 2026-27 budget allocates more to highways than to education and health combined. Second, the government blames the IMF for constraints while ignoring its own discretionary choices. Third, with a median age of 20.8 years, Pakistan has no time to waste yet the budget shows no urgency. Pakistan can succeed in future by leveraging population as an asset however for it to done human capital need to be a true priority, not a formality.