ENHANCING THE HUMAN DEVELOPMENT INDEX (HDI) OF PAKISTAN: THE ROLE OF PUBLIC-PRIVATE PARTNERSHIPS

Abstract

Pakistan is classified in the low human development category due to inadequate health, income, and education indicators. It currently ranks 161 out of 192 nations. Since its founding, Pakistan has struggled with poverty, with nearly 55 million individuals living below the poverty line. A significant issue facing Pakistan is its financial situation, which hampers efforts to improve the lives of its citizens. The government is unable to provide all necessary resources due to a lack of funding. One potential solution is public-private cooperation. By partnering with private organizations, the government can offer essential services like infrastructure and health education, helping to elevate residents' standard of living. This article draws on research and examples of public-private partnerships in countries such as the United Kingdom and the United States. Public-Private Partnership combines the Social Contract Theory of Political Science with the Contract Theory of Economics. Nations like the U.K. and the USA have established numerous PPP contracts to enhance their Human Development Index (HDI); a similar approach is necessary for developing countries like Pakistan. Implementing the Principal-Agent Model within Public-Private Partnerships can enable the government to derive benefits and improve the living conditions of its citizens.