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Human Development progress slows to a 35-year low: UNDP report

ISLAMABAD, May 07 Artificial intelligence (AI) is racing ahead at
lightning speed, yet human development is stalling.

Decades of progress, reflected in the Human Development Index, have
flatlined, with no clear recovery from the blows dealt by the Covid-19
and subsequent crises.

While AI promises to redefine our future, it also risks deepening the
divides of a world already off balance, says the 2025 Human Development
Report (HDR) entitled “A matter of choice: People and possibilities in
the age of Artificial Intelligence” released this week by the United
Nations Development Programme (UNDP).

“For decades, we have been on track to reach a very high human
development world by 2030, but this deceleration signals a very real
threat to global progress,” said Achim Steiner, UNDP Administrator.

“Amidst this global turmoil, we must urgently explore new ways to drive
development. As Artificial Intelligence continues its rapid advance
across so many aspects of our lives, we should consider its potential
for development. New capabilities are emerging almost daily, and while
AI is no panacea, the choices we make hold the potential to reignite
human development and open new pathways and possibilities.”

The 2025 HDR places Pakistan in the ‘low’ human development category,
with a Human Development Index (HDI) value of 0.544, resulting in a rank
of 168 out of 193 countries. If adjusted for inequality, Pakistan’s HDI
decreases by 33.1 percent to 0.364, while its Multidimensional Poverty
Index (MPI) remains unchanged from 2023/2024 levels at 0.198.

On the other hand, Pakistan has shown modest improvement in the Gender
Inequality Index (value of 0.536 with a rank of 145 out of 172
countries), and the Gender Development Index (value of 0.838), bringing
it closer to global trends.

“Despite its economic and social development challenges, Pakistan is
emerging as a dynamic force in the technological space with great
potential”, UNDP Pakistan Resident Representative Dr. Samuel Rizk shared
while commenting on the report.

“With its large population, growing digital infrastructure, vibrant tech
talent and appetite, and a National AI Policy being formulated, the
country has a real opportunity to use AI for inclusive and accelerated
development.”

The HDR also features findings from a new global survey, revealing that
people are realistic yet hopeful about the change AI can bring. While
half of respondents believe their jobs could be automated, an even
larger share—six in ten— expect AI to impact their employment
positively, creating opportunities in jobs that may not even exist
today.

Only 13 percent of respondents fear AI can lead to job losses. In low-
and medium-HDI countries, 70 percent of respondents anticipate that AI
will boost their productivity, and two-thirds expect to use AI in
education, healthcare, or work within the next year.

The HDR advocates for a human-centered approach to AI, which has the
potential to fundamentally redesign approaches to development. It also
outlines three critical areas for action: building an economy where
people collaborate with AI rather than compete against it; embedding
human agency across the full AI lifecycle, from design to deployment;
and modernizing education and health systems to meet the demands of the
21st century.

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