Human Development progress slows to a 35-year low according to UNDP’s 2025 Human Development Report
Pakistan ranks 168th with a ‘low’ human development status
Islamabad, – 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.