PEP Assignment # 01

Ashber Khan (20211-30975)

Human development index is an economic indicator which takes into account real GDP per
Capita, life expectancy at birth and educational attainment to account for quality of life.
Whereas GNP per Capita is the value of a country’s final output of goods and services produced
in a year divided by it’s population. The HDI is considered as the most accurate measure of
human wellbeing as compared to the conventional economic indicators. HDI takes into account
multiple dimensions of human development measure such as health, education and living
standard.
HDI is better than GNP because of the following ways:
1) In GNP we don’t consider health care and education of a country to measure its living
standard. GNP soley focuses on national output and income.
2) GNP only tells how much output is produced in a year, but it doesn’t tells what types of
goods and services are produced in a country and what is the wealth distribution among
the individuals.
3) HDI shows more consie picture of human development which allows policy makers to
have better understanding of the development in a country.
Pakistan is the 6th largest country in terms of population and 144th in terms of economy.
According to the survey in 2004 Pakistan ranked 164/203 in terms of GNP per Capita, and 144 th
out of 203 nations in terms of united nations development index (1974-2004)

HDI comparison with other nations.

If we analyse Pakistan HDI performance for the year 2021, we get to know that it’s value is
0.544 is which low as compared to it’s neighboring countries, like India which has the HDI value
of 0.633, China with an HDI value of 0.768 and United States with an HDI value of 0.921. The
reason behind this is that Pakistan is still a developing nation like India however china and USA
through their continuous developments, are stated as a developed country. If we compare life
expectancy at birth of Pakistan which is 66.1 with countries like India which has a life
expectancy at birth at 67.2, china with 78.2 and United States with 77.2. From this we get to
know that Pakistan has a low expectancy rate due to health and climate issue in regards to
other countries. If we compare Pakistans means year of schooling which is 4.5 with countries
like India with a rate of 6.7, china with a rate of 7.6 and USA with a rate of 13.7. This information
helps us in concluding that Pakistan lacks behind the rest of the country due to low literacy rate
and hence helps us in concluding that Pakistan as a nation needs to works toward more
development in order to reach the goal of a developed country.