Fourth, the most important missing link in Pakistan’s competitive edge and what is posing as a serious threat to its economic progress are the poor indicators of human development. Adult literacy and the skill level of the labour force are low, health status is precarious with low productivity, high absenteeism and gender disparities are large.
The country has to devote more attention and resources to invest in education, health, nutrition and gender programmes to equip the labour force to excel in its area of specialization. Finally, Pakistan has embarked on a program to devolve administrative functional and financial powers to local tiers of government.