Pakistan’s Population Boom: A Double-Edged Sword for Economic Growth

Pakistan is poised to become the world’s third most populous nation by the middle of this century, according to United Nations projections. Currently ranked fifth, Pakistan is expected to swiftly overtake countries like the United States and Indonesia due to its high fertility rate and robust population momentum. This rapid growth stands in contrast to other nations, like China and the US, which are experiencing slower population growth or even decline.

The average Pakistani woman has more than three children, leading to a birth rate that outpaces the death rate, fueling the country’s population expansion. While a large population can be a boon for economic growth, as seen in China and India where it has driven domestic consumption and spurred industrial development, Pakistan faces a different reality. The country is already grappling with economic struggles, heavily reliant on international loans.

A young, growing population can provide a large labor force, potentially driving economic growth. However, Pakistan already grapples with high unemployment and underemployment rates. This situation could worsen if the economy fails to create enough jobs to absorb the influx of new workers.

As the population grows, so too does the demand for food and energy. Pakistan has long faced frequent energy shortages and food inflation, a situation exacerbated by the economic crisis that began in 2022 following devastating floods. These challenges highlight the potential pitfalls of a rapid population increase without robust economic and infrastructure development. Pakistan must address these issues to ensure that its population boom translates into sustainable economic growth and improved living standards for its citizens.

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