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The analysis of public spending reviews from 2017-22 reveals that children’s costs by provincial governments are not in line with their budget promises. Due to the cost of serving large loans, public finance barriers are reducing the investment of the social sector, with public spending on education limited to only 2 % GDP, 1 % on health and 1 % on social protection. About 40 % of our population – the future – is currently under 18 years of age – thus is at stake due to insufficient investment in human capital development.
According to the IMF, Pakistan has a difference of financing the social sector, which is equivalent to 16.1 % of its GDP, which is needed to meet the SDG by 2030. Although the financial deficit has improved the expansion fund facility, the public finance is insufficient to meet the UN benchmark and the required spending on the social sector. Under the National Finance Commission Award, the procedure for distribution of revenue is equally important as the provinces rely on federal transfer for social costs.
In addition to payment of loans, factors such as low -moderate GDP growth and limited production of revenue, repeated climate disasters and population pressure, are increasing the financial challenge to meet social spending. The result of this situation is that about 26 26 million children are currently out of school. Multi -dimensional poverty in the country has increased the population by 40 % to further reduce social spending of people in interfaith poverty.
Government Development Aid (ODA) has seen a sharp decline in the year 2025 among global quality measures. Therefore, it is far more appropriate for the federal and provincial governments and civil society to diversify and specialize in alternative financing for investment in the sustainable social sector.
New policy equipment and modern models need to be adopted to increase the financial space. There is a need to approach social spending as investment in the next generation. The traditional approach to social spending, which is often considered as a charity or welfare, is no longer enough to meet Pakistan’s challenges. A basic sample shift is needed to re -accept this cost as a high return investment in future human capital.
Policy devices and reforms
The results based on the results need to be re -designed by adopting a result -based approach. It requires multi -layered financial support strategies to put into practice, interacting the traditional and unconventional financing model as well as international funding with national goals, with medium -sized budget framework.
Adding results based on the resulting financing in the social sector means that in the future, human capital has reached social costs as a high return investment. Such changes to the financing structure will pave the way for increasing the financial pool with private investment through social impact bonds and other equipment, and eventually promotes a successful modern policy solution.
Second, due to the instability of policy goals and the non -preference of the social sector from the lens of the constitutional rights of children, the financial policy has been reacting to their needs. As a engine of flexibility and production capacity, a long -term and durable financing approach is missing. The recent positive development in this regard is the mandate of the Euran Pakistan equity and empowerment, which wants children’s comprehensive and equitable education, health and nutrition. However, in addition to the immediate emergency response to understand this vision, long -term development investment will require mutual cooperation between all stakeholders.
Thirdly, the effective use of social sector costs is clear for its stability and scale. In the absence of provincial finance commissions, most of the development costs are on the infrastructure rather than the development of the social sector. In order to include provincial social costs, the NFC award needs to be amended.
Fourth, there is a need to establish links between climate adaptation and social sector. There is a strong connection between social sector and climate funding. This can be translated into an integrated perspective to identify children’s focus of climate finance. As a case study of the Finance Project of the Cross Sector Climate Climate, Malawi’s climate health can learn from the flexible project. Education and health projects can be linked to water, urban flexibility, infrastructure and flood recovery projects. This goal is to change the capacity of this purpose, keeping in mind this connection to improve and prepare dedicated tips.
Modern and cost -effective financing models that have been successful in other countries can help Pakistan diversify their financial resources for investment in the social sector.
Many experts are now talking about the modern alternative financing model. Here are some examples:
Mix Finance connects public and charitable funds with private capital to mobilize investment for sustainable development measures, thus reducing the risk and losses to the investor. A successful global example in the social sector is a global partnership for the Multi -Plus Fund for Education. Development impact is an example of bonds, social impact bonds, social success notes and social impact guarantees guaranteed finance equipment.
Social Impact Bonds The results are a financial device under which private investment for the social sector is mobilized after the results are achieved. In such arrangements, in the public sector, private investors and service providers jointly implement the program. In partnership with the private sector for long -term employment results, the Employment Impact Bond is currently being implemented on the Bipnjab Skills Development Fund. It strives to provide young people with future skills.
Social success notes are a result -based financial tool in which private investment for the social sector is dynamic. In this case, these are social businesses that provide funds with profit associated with the results. Social influence guarantees are a model in which the government or other donors guarantee a guarantee to encourage private investment. Singapore’s social impact guarantee: Increasing the Youth Support Program has helped improve education and employment results for young people.
Destructive bonds, an insurance associated security, can be linked to the national level climate adaptation agenda to financing the destruction response measures.
In a long time, public finance cannot be withdrawn from the social sector. It needs to take advantage of alternative tools for financing as an alternative to financing, and not in its substitute. In view of paying and serving loans that exceeded social spending, bilateral loans are a strong issue for renewing their bilateral loans in exchange for their commitment to replacing the loan with investment in social and sustainable development in social and sustainable development in Pakistan. Egypt has reached the exchange of loans with Germany, pledging to allocate resources for welfare programs. Through children’s purchase loans, Pakistan can also transform its debt into promises to children’s health, education and fitness.
The private sector should adopt a long -term, consequences approach for corporate social responsibility (CSR) and charity gentlemen, and they should harmonize with national development goals. Instead of short -term projects, investment should focus on the social impact of measurement. A successful example of this is the Indus Hospital network, which has shown how stable, strategic health care human friendship can serve the weak.
To ensure the better quality of long -term stability and health care services, the SE SIGS Facility Program should be transferred to a controversial model. Levies on tobacco and soft drinks can generate dedicated revenue for children -based health and nutritional programs, while also discouraging harmful product consumption.
Since the recent floods and their impact on children have once again shown the traditional approach to social spending, which is often considered as a charity or welfare, they are no longer enough to meet Pakistan’s challenges. A basic sample shift is needed to re -accept this cost as a high return investment in future human capital.
Social sector investment stability and scales will eventually be determined through local needs and contexts as well as integration with national and sustainable development goals.
The author is a senior policy adviser/ researcher at the Sustainable Development Policy Institute Islamabad. She can arrive at rasia@sdpi.organd rasia.safdar7@gmail.com
