Pakistan considers social security a constitutional right for its citizens. However, the country faces challenges like economic crises, political instability and natural disasters, exacerbating poverty among vulnerable populations. These factors particularly affect vulnerable communities, leading to an increase in the poverty rate. In the wake of the pandemic and 2022 floods, it is estimated that the national poverty rate could rise by 3.7 to 4.0 percentage points, potentially pushing an additional 8.4 to 9.1 million people into poverty. With impoverished households experiencing even greater hardships, social spending has become critical not only to enhance Pakistan's growth potential but also to safeguard the most vulnerable segments to achieve the SDGs.​

In FY23, the government allocated approximately PKR404 billion, which is 0.4 percent of GDP, for the Benazir Income Support Programme (BISP), the national social protection initiative. This amount was more than 70 percent higher than the expenditure in FY22 and  spurred by a policy decision to enhance social protection specifically to mitigate the negative impact on the poor caused by the floods as well as due to tough IMF reforms for budgetary support. ​

This increase in budgetary allocations will not only cover all ongoing BISP programmes, but also accommodate an additional 300,000 families in the Unconditional Cash Transfer (UCT) Kafalat programme from July 2023, and account for the regular inflation adjustment of the UCT Kafalat stipend from January 2024, thereby increasing families’ resilience against economic shocks. ​

Sources: Economic Survey of Pakistan 2022-2023 and IMF Country Report No. 23/260: Pakistan (2023)

Notwithstanding the V-shaped recovery during the post-COVID period,  the consumption-led economic expansion in Pakistan led to serious internal and external macroeconomic imbalances in subsequent years. The higher twin deficits, elevated inflation, high public debt, exchange rate depreciations and depleted foreign exchange reserves resulted in high-level downward risks to the economy. To avert sovereign default, the government efforts for economic stabilization, fiscal consolidation and import compression, coupled with geopolitical tensions,  devastating floods (the damage is estimated at US$14.9 billion, the loss to GDP at $15.2 billion and the total needs of rehabilitation at $16.3 billion) and political instability, caused real output growth plummeted to 0.3% in 2022-23 (6.1% last year). Per capita income fell to US$ 1,568 registering an 11% fall from the preceding year. ​

​With an annual target of 3.5% real GDP growth for 2023-2024, the government is aiming to attain on average a 5% growth rate  thein real economy during the next several years. The growth prospects are positive for the next fiscal year with the revival of economic activity to the pre-floods 2022 level, improved political stability after the 2023 general elections, a projected fall in global commodity prices, improved energy supplies and a better business and investment environment. ​

​The IMF Executive Board has approved a nine-month Stand-by Arrangement for Pakistan with $3 billion to support the government’s economic stabilization programme and to achieve sustained growth. The IMF has estimated a 0.5 to 1.6 percentage change in Pakistan’s real per capita income in the next several years, whereas the economy is projected to be challenged by a high fiscal imbalance, negative terms of trade and pressures on external sector indicators. ​

Given this context, economic growth and Target 8.1 are deemed essential for achieving all other SDGs as well. ​

​Sources: Economic Survey of Pakistan 2022-2023; IMF Country Report No. 23/260: Pakistan (2023); Annual Plan 2023-2024; Medium Term Budget Strategy 2023/2024 -2025/2026.​

The government has been taking concerted measures to promote reliable and resilient infrastructure to promote transborder trade and support inclusive economic development and well-being of the people.  Higher-technology industries performed better and recovered faster, providing a strong example of how important technological innovation is to support resilient infrastructure. The government is cognizant of the pivotal role played by modern transportation and communication infrastructure in attracting investments and achieving inclusive economic development in a country. ​

​The government is actively pursuing the development of infrastructural facilities aimed at enhancing market access, both within the country and across borders. Investment in the transport and industrial infrastructure, including highways, railways, ports, aviation and special economic zones are the main ingredient under the  China-Pakistan Economic Corridor creating forward and backward socio-economic linkages and inclusion. ​

The 2022 flooding has further exposed underlying institutional and systemic challenges also having implication for achieving SDGs in Pakistan, including poor urban planning (SDG 9) and water resource management (SDG 6), lack of systems for infrastructure maintenance (SDG 9), complex governance (SDG 16), structural inequalities (SDG 10), and limited disaster risk reduction capacity (SDG 13). Simultaneous multiple shocks, including natural hazards, COVID-19, rising inflation, and energy crisis, and fiscal challenges, continue to compound the impacts.​

​The 2022 floods damage is estimated at $14.9 billion, the loss to the GDP at $15.2 billion and the total needs of rehabilitation at $16.3 billion. The transport and communications sector have the highest reconstruction and recovery needs at $5 billion, followed by agriculture, food, livestock, and fisheries at $4.0 billion, and housing at $2.8 billion.​

​The government’s 5Es framework1 is based on building up an export-led infrastructure and industrial sector transformation, setting up and promoting e-infrastructure and digitization, and supporting environmental sustainability and energy affordability and access. Under the 5Es framework, increasing Pakistan’s efficient energy production and building infrastructure for the health, water, sanitation and power sectors will be a key priority area.​

​The Public Sector Development Programme 2023-24 (PKR1,150 billion) has been mainly aligned towards the 5Es and 4R2 frameworks to support economic growth and rehabilitate infrastructure caused by the disastrous 2022 floods. The major chunk of the PSDP 2023-24 is earmarked for multisectoral infrastructure projects in green energy and energy conservation, IT, disaster risk reduction, climate adaptation, transport and communication, industry, among others. Given this context, inclusive infrastructure (SDG 9), systemic resilience against natural hazards (SDG 13), and climate change impacts, building back better and Target 9.1 are essential for achieving these goals.​

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1 Exports, e-Pakistan, environment and climate change, energy and infrastructure, equity and empowerment. 2 Resilient, Recovery, Rehabilitation and Reconstruction.​

Source: Economic Survey 2022-2023, Long-term Plan for CPEC (2017-2030); PSDP 2023-2024, PDNA 2022, 5Es Framework​

Pakistan’s rapidly increasing population of 241.49m (Pakistan Digital Census 2023) with a population rate of 2.55% and increased urbanization rate of 3.65% (93.8 million people living in urban areas) is causing deterioration in the country’s urban infrastructure, including safe and affordable housing. Formal housing is out of reach for most of the population, particularly women. The 2022 floods have further compounded the problem, as housing suffered the most damage with an estimate of $5.6 billion and rehabilitation needs of $2.8 billion. Affordable housing remains a major need for middle- and lower-income groups in Pakistan. The government has outlined an ambitious agenda to build five million affordable housing units in five years, and it is taking measures to promote formal housing sector by strengthening the regulatory regime for adequate access to basic infrastructure, finance, and public services, as well as formalization of slums and resolution of land settlement issues. ​

​From an economic perspective, the real state sector values at $300 billion to $400 billion. Apart from direct employment, it also stimulates the demand of more than 400 industries of the economy from construction, including cement, steel, paint, building material, architects, urban planners,  house financing.. The construction sector contributed 2.5 percent to GDP and employed 7.7 percent of the employed Pakistani labour force. Over 90 percent of private gross fixed capital formation has been contributed by the housing and construction sector in Pakistan. ​

​Rehabilitation from the devastating floods required an estimated $16.3 billion. The sectors that suffered the most damage is housing with an estimated rehabilitation need of $5.6 billion.​

​The availability of affordable housing remains a major issue for middle- and lower-income groups in Pakistan, despite the government’s ambitious agenda to build five million affordable housing units in five years. The government has been taking measures to promote the formal housing sector in the country with strengthening of the regulatory regime for ensuring adequate access to basic infrastructure, access to finance and public services in the housing sector. Appropriate measures have been taken to formalize slums and to resolve land settlement issues. ​

​Under the 5Es framework building infrastructure for health, waters, sanitation and power sectors will be a key priority areas with major focus on equity and inclusion. Housing (Target 11.1) is a necessity which is deemed essential for achieving many other SDGs.​

​Source: State Bank of Pakistan, World Bank, Pakistan Institute for Development Economics, Pakistan Economic Survey 2022-2023, Post-Disaster Needs Assessment 2022, 5Es framework.​

Pakistan's government was one of the first developing countries to take ownership of the SDGs, which was followed by a unanimous acceptance and adoption of SDGs as the National Development Framework Agenda at the federal, provincial and, to some extent, at the district level. The government realizes that effective, accountable and transparent institutions play a vital role in promoting good governance practices, which are also instrumental for  the successful achievement of the SDGs.

Pakistan’s ranking on the Global Competitiveness Index 2019 improved slightly to 107th out of 141 countries, largely due to institutional reforms, yet there is a potential for an improvement in governance. Thus Goal 16 is included in the priority I category of the country.

While the government has developed national and sub-national frameworks, these have not yet been fully translated into development planning and financing processes resulting in sub-optimal achievement of SDGs.  Good governance plays a crucial role in facilitating collective action, holding the parties involved accountable and addressing intricate trade-offs that arise between the goals. Target 16.6 can serve as an enabler to achieve all SDG-related policies and programmes by ensuring their effective implementation.