Infrastructure Without People: The Hidden Crisis of Human Capital in Pakistan's Growth Strategy

Abstract

Pakistan’s economic development strategy has been heavily centered on infrastructure expansion, with major investments channeled into large-scale projects such as highways, power plants, and industrial zones, particularly under the China-Pakistan Economic Corridor (CPEC). While these initiatives are vital for improving physical connectivity and energy access, they have not been matched by equivalent efforts to build and retain a qualified and skilled workforce. This lopsided approach threatens to undermine the sustainability and effectiveness of infrastructure projects.

This manuscript explores the short- and long-term implications of underinvestment in human capital, including missed economic opportunities, a widening skills gap, and increasing dependency on foreign labor. By applying Human Capital Theory and analyzing empirical data from national and international sources, the study identifies systemic challenges such as inadequate education spending, talent migration, and limited vocational training capacity. The findings indicate that these issues collectively constrain Pakistan’s growth potential and exacerbate inequality.

The paper concludes with targeted policy recommendations to align workforce development with infrastructural growth, emphasizing the urgent need for education reform, technical training expansion, talent retention incentives, and integrated planning. By prioritizing human capital alongside infrastructure, Pakistan can chart a path toward inclusive, sustainable, and innovation-driven development.