Pakistan's development goals at risk as funding gap, governance challenges widen, report says

LAHORE (Dunya News) — Pakistan’s 2030 development goals are increasingly at risk due to a widening financing gap and persistent governance challenges, according to a new report released by the Ministry of Planning.

The “SDGs Financing Gap Report” estimates that Pakistan requires an additional $46 billion annually to meet the Sustainable Development Goals (SDGs), highlighting a sharp mismatch between policy ambitions and available fiscal resources.

The report says Pakistan would need to spend between 15% and 17% of its gross domestic product each year to achieve the SDGs, while current development spending remains far below that threshold. It notes that the annual financing gap is close to 16% of GDP, broadly in line with estimates cited by the International Monetary Fund.

Officials acknowledged that the country’s tax-to-GDP ratio, currently around 11%, is insufficient to support the scale of public investment required. Limited revenue collection, coupled with rising debt-servicing costs, has constrained the government’s ability to fund long-term development programs.

A significant share of fiscal resources continues to be diverted toward debt repayments and emergency expenditures, the report said. Natural disasters, the COVID-19 pandemic and recurring economic shocks have repeatedly forced the reallocation of development budgets toward relief and recovery efforts.

The ministry warned that unless the structure of public spending and governance frameworks is reformed, Pakistan’s development trajectory could slow further. The period from 2026 to 2030 was described as a “decisive but high-risk phase” for meeting national and international commitments.

Human development indicators, including education, health and access to clean water, were cited as areas facing the largest funding shortfalls, with progress lagging behind regional peers.