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General Studies 3% exam weight

Topic 2

Part of the KPK PMS study roadmap. General Studies topic pakist-002 of General Studies.

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Pakistan’s Governance, Economy, and Society: Core Issues and Challenges

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Topic 2 — Key Facts for KPK PMS Core concept: Pakistan is the fifth most populous country in the world with ~240 million people; it faces persistent challenges in human development, governance, and economic stability; despite rich natural resources and strategic location, it struggles with poverty, inequality, and institutional weakness High-yield point: Pakistan’s Human Development Index (HDI) ranking is approximately 161/193 (2022), reflecting low life expectancy (~67 years), low educational attainment (~4.5 mean years of schooling), and low per capita income; the country has one of the world’s largest out-of-school children populations (~22 million) ⚡ Exam tip: The persistent fiscal deficit and low tax-to-GDP ratio (~10%) are core structural challenges; Pakistan’s tax system disproportionately burdens the poor while leaving large sectors untaxed — agricultural income, real estate, and the informal economy; this is frequently tested

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Pakistan’s Demographics and Human Development

Population

IndicatorValue
Population (2023)~240 million
Population growth rate~2.4% per year
Urban population~37%
Median age~22 years
Sex ratio106 males per 100 females

Key Demographic Concerns:

  • Rapid population growth strains resources and infrastructure
  • Pakistan’s population is projected to reach ~380 million by 2050
  • Youth bulge (65% under 30 years) — potential demographic dividend or burden

Health Indicators

IndicatorValue
Life expectancy at birth~67 years
Infant mortality rate~55 per 1,000 live births
Maternal mortality ratio~140 per 100,000
Under-5 mortality~65 per 1,000
Total health expenditure~3.5% of GDP

Key Health Challenges:

  • The Lady Health Workers Programme: Community health workers providing basic health and family planning services; has been successful but understaffed
  • Polio: Pakistan is one of two countries (with Afghanistan) where polio remains endemic; multiple vaccination workers killed in anti-vaccination attacks
  • Dengue: Major outbreaks in Punjab and KP
  • Tuberculosis: High burden (estimated 600,000 cases per year)
  • Child malnutrition: Pakistan has one of the world’s highest rates of child stunting (~38%)

Education

IndicatorValue
Literacy rate~62% (adult)
Male literacy~71%
Female literacy~53%
Out-of-school children~22 million (6–16 age group)
Government education spending~2.5% of GDP

Educational Structure:

  • 5 years primary: Ages 5–9
  • 3 years middle: Ages 10–12
  • 2 years high: Ages 13–14
  • 2 years intermediate (FSc/FA): Ages 15–16
  • 4 years undergraduate / 2 years master’s: Higher education

Key Educational Issues:

  • Public education quality is poor; private schools serve the elite
  • The two-nation model: Elite English-medium private schools vs. Urdu-medium government schools
  • Madrasa education: Thousands of religious schools; quality control concerns
  • Brain drain: Highly educated Pakistanis emigrate in large numbers (doctors, engineers, IT professionals to the Gulf states, UK, Canada, USA)

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Pakistan’s Governance Challenges

The Civil Service

The Civil Service of Pakistan: The legacy of British colonial administration (the Indian Civil Service) persists:

  • The civil service is compartmentalised into elite “OG” (Occupational Groups) and lower-tier positions
  • Key positions: Provincial Management Service, Police Service, etc.

Problems:

  • Political interference in postings and transfers
  • Inadequate training and accountability
  • Large number of ghost employees (salaries paid to non-existent workers)
  • Corruption: Pakistan ranked 140/180 on Transparency International’s Corruption Perceptions Index (2023)

Reform Attempts:

  • The Establishment Division’s reforms
  • Computerised service records
  • e-Governance initiatives in KP and Punjab

The Police System

The Police Order 2002: Pakistan introduced a police reform package that:

  • Established Public Safety Commissions (provincial and federal)
  • Created the Inspectorate of Prosecutors
  • Aimed to make police more accountable

Persistent Issues:

  • Police remain under-resourced and under-trained
  • Torture and custodial deaths remain common
  • The first information report (FIR) system is often manipulated for political purposes
  • Police officers are routinely transferred based on political pressure

The Model Police Compounds: Some provinces have attempted to improve police infrastructure through “model police compounds” with modern facilities.

Local Government

The Evolution of Local Government: Pakistan has had multiple local government systems:

  • 1979, 1980: Zia’s local government ordinance
  • 2001: Musharraf’s District Government System (Nadera Syed)
  • 2019: PTI’s local government act for KP
  • 2022: The Peshawar High Court struck down the 2019 act

Current Status: The local government in most provinces is in flux. Effective local governance is limited by:

  • Lack of financial autonomy
  • Provincial governments’ reluctance to devolve power
  • Political interference

Pakistan’s Economy

Macro-Economic Indicators

IndicatorValue (2023–2024)
GDP (nominal)~$376 billion
GDP per capita (nominal)~$1,500
GDP growth rate~2.4%
Inflation~28–30%
Fiscal deficit~5–7% of GDP
Tax-to-GDP ratio~10%
Debt-to-GDP ratio~80%

The Structural Problems

1. Low Tax-to-GDP Ratio: Pakistan’s tax-to-GDP ratio (~10%) is one of the lowest in the world. Compare:

  • India: ~11%
  • Bangladesh: ~9%
  • Sri Lanka: ~13%

Who is not taxed:

  • Agricultural income (large landowners exempt)
  • Real estate (informal sector)
  • Retail businesses (most transactions informal)
  • Wealthy individuals

Who bears the burden:

  • Salaried individuals (income tax deducted at source)
  • Indirect taxes (GST, customs duties — regressive)

2. The Energy Crisis: The circular debt (~Rs. 2.5 trillion) has destabilised the energy sector:

  • DISCOs (distribution companies) collect only ~70% of bills
  • IPPs (power producers) are not fully paid
  • The government borrows to cover the gap
  • Load-shedding (power cuts) continues, especially in summer

3. The Debt Crisis: Pakistan’s external debt has grown to approximately $125–130 billion:

  • Debt servicing consumes ~50% of federal revenue
  • Pakistan has approached the IMF 12+ times
  • The most recent IMF programme (2023 Stand-By Arrangement) was $3 billion

4. The Exchange Rate Problem: The Pakistani rupee has depreciated dramatically:

  • 2018: ~PKR 125/USD
  • 2022: ~PKR 200/USD
  • 2024: ~PKR 290/USD

This depreciation increases the cost of imports and external debt servicing.

The Informal Economy

The Informal Economy in Pakistan: Pakistan’s informal economy accounts for an estimated 50–70% of economic activity:

  • Unregistered businesses (no tax registration)
  • Agricultural transactions (largely cash-based)
  • Street vendors and small shops
  • Construction labour without formal contracts

Causes:

  • High tax rates drive businesses to operate informally
  • Regulatory complexity
  • Weak enforcement capacity

Solutions:

  • Broadening the tax base through better administration
  • Reducing GST rates (to reduce the incentive for informalisation)
  • Digital record-keeping

Pakistan’s Society

Social Structure

Caste and Feudalism: Pakistan’s feudal system (wadera culture) remains powerful, particularly in Sindh and South Punjab:

  • Large landholders (feudals) control the political representation of their tenants
  • Tenant farmers often vote as instructed by landlords
  • This perpetuates political inequality

The Tribal System in KP and Balochistan:

  • In KP (particularly former FATA), tribal elders (khan/tribal chief) hold significant social and political power
  • The tribal lashkar (armed tribal force) has historically been used for feuds and against external threats
  • The 25th Amendment (merging FATA into KP) has begun to erode tribal structures

The Class Structure: Pakistan has a growing urban middle class (approximately 30–35 million people):

  • Concentrated in major cities (Karachi, Lahore, Islamabad, Peshawar)
  • Education, business, and government service are the pathways to middle-class status
  • The middle class has different political preferences from feudals and the urban poor

Women in Pakistan

Constitutional Rights:

  • Article 25: Equality of citizens
  • Article 34: Special provisions for women
  • Pakistan has ratified CEDAW (Convention on the Elimination of All Forms of Discrimination Against Women)

Persistent Issues:

  • Domestic violence: 50–70% of women experience some form of domestic violence
  • Honor killings: Vastly underreported; the “honor” defence remains a legal defence
  • Workforce participation: ~22% (one of the lowest in the region)
  • Educational disparity: Female literacy 53% vs. male 71%

Positive Developments:

  • The Women in Distress (Protection) Act (2022)
  • The Domestic Violence Bill (KP and Punjab)
  • Women in local government (reserved seats)

Minority Rights

The Situation of Religious Minorities: Pakistan has significant religious minorities:

  • Christians (~2% of population)
  • Hindus (~2% of population)
  • Sikhs, Buddhists, Parsis (small communities)
  • Ahmadis (~0.2% of population — officially declared non-Muslim in 1974)

The Blasphemy Laws: The blasphemy laws (PPC sections 295-B and 295-C) have been used to target minorities:

  • Accusations often arise from personal disputes
  • False accusations are difficult to prosecute
  • Minimum sentence for 295-C is death (though courts have rarely executed)

The Forced Conversion Issue: Forced conversions of Hindu girls to Islam (particularly in Sindh) have been a growing concern. The Supreme Court has issued notices but the issue remains unresolved.

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