Pakistan stands at a critical juncture. With 69 million people aged 10 and above unable to read or write, and 25.37 million children aged 5–16 out of school, illiteracy is not just an educational crisis—it’s an economic and social catastrophe. The 2023 census lays bare the scale of this challenge, revealing a nation where nearly 40% of its population is denied the basic skills needed to thrive in a modern economy. The cost of this crisis is staggering, but the solution—investing in literacy—is within reach and promises transformative returns. By addressing illiteracy head-on, Pakistan can unlock billions in economic potential, break the cycle of poverty, and build a more equitable and prosperous future.
The Staggering Cost of Illiteracy
Illiteracy is bleeding Pakistan’s economy dry. Over the past decade (2015–2025), the cost of illiteracy has likely amounted to $885.9 billion, or roughly $88.6 billion annually. This figure reflects the combined toll of lost productivity, missed opportunities for out-of-school children, and poverty-related expenses:
- Lost Productivity: The 69 million illiterate individuals aged 10 and above are confined to low-skill, low-wage jobs, contributing far less to the economy than they could with basic literacy. If each could add just $1,000 annually to GDP—a conservative estimate—the annual loss is $69 billion, totalling $690 billion over 10 years.
- Missed Opportunities for Children: The 25.37 million out-of-school children represent a generation of lost potential. If each could earn an additional $500 annually as adults with literacy skills, the annual opportunity cost is $12.69 billion, or $126.9 billion over a decade.
- Poverty’s Burden: Illiteracy fuels Pakistan’s 40% poverty rate, with 96 million people living below the poverty line. Assuming the government spends $100 per illiterate person annually on subsidies and healthcare, this adds $6.9 billion yearly, or $69 billion over 10 years.
Beyond economics, illiteracy perpetuates gender inequality, with women’s literacy at 51.9% compared to 73.4% for men. It drives poor health outcomes, early marriages, and even extremism, as uneducated youth are vulnerable to exploitation. While harder to quantify, these social costs deepen Pakistan’s challenges, deterring investment and fostering instability.
The Affordable Solution: Investing in Literacy
The good news? The cost of tackling illiteracy is a fraction of the price we pay for ignoring it. Educating Pakistan’s 94.37 million illiterate and out-of-school population would require an estimated $28.72 billion over five years, or $5.74 billion annually—just 6.5% of the annual cost of illiteracy. Here’s how it breaks down:
- Adult Literacy Programs: Basic literacy for 69 million adults, through setting up literacy centers, costs approximately $100 per person for a 6–12-month course—total: $6.9 billion (one-time).
- Educating Children: Providing five years of primary education for 25.37 million out-of-school children, at $172 per student annually (based on Punjab’s 2022–23 education budget), costs $860 per child, or $21.82 billion over five years ($4.36 billion/year). In addition, a cost-effective approach may be adopted to provide flexible education/ learning to 10-16 years of age children who are generally overage and have limitations in studying in formal schools. Accelerated Learning Programs (ALPs) as alternative and flexible options delivered through conventional, digital, and hybrid delivery modes will be a viable and cost-effective option to include the excluded. Vocational skills may also be integrated with these learning models to equip youth with marketable and employable skills to directly improve the poverty and human capital situation.
- Average Cost: Across both groups, the blended cost is $304 per person over five years, or $61 per person annually.
Compare this to the $938 per person annual cost of illiteracy ($88.59 billion ÷ 94.37 million). Investing in literacy is 15 times cheaper than the ongoing economic haemorrhage caused by inaction.
Why Literacy Is the Smart Investment
The case for literacy is not just moral—it’s economic. Every dollar spent on education yields exponential returns by boosting productivity, reducing poverty, and fostering stability. Consider the benefits:
- Economic Growth: A 1% increase in literacy can boost GDP per capita by 0.3–0.5%, according to global studies. Raising Pakistan’s literacy rate from 60% to 80% could add billions to the economy annually, far outweighing the $5.74 billion yearly investment.
- Breaking the Poverty Cycle: Literacy equips individuals with skills for better jobs, lifting millions out of poverty and reducing the $6.9 billion annual burden on government resources.
- Empowering Women: Closing the gender literacy gap (21.5% disparity) would increase female workforce participation, reduce early marriages, and improve health outcomes, saving billions in healthcare costs.
- Social Stability: Educated youth are less susceptible to extremism, fostering a safer, more attractive environment for foreign investment.
A Call to Action
Pakistan’s education budget, currently at 1.7% of GDP, falls woefully short of the recommended 4%. To eradicate illiteracy, the government must act decisively:
- Increase Education Spending: Commit 4% of GDP to education, prioritizing literacy programs for adults and schooling for children, especially in rural areas and for girls.
- Scale Up Literacy Programs: Expand the Adult Literacy programme through setting up 36,900 literacy centers to reach all 69 million illiterate adults, with a focus on cost-effective, non-formal education. Digital and hybrid delivery models, Each One, Teach One (EOTO), Recognition of Prior Learning (RPL), and engaging educated youth to impart literacy may be employed to scale up the literacy promotion strategies.
- Bring Children Back to School: Invest in infrastructure, teacher training, and incentives (e.g., free meals, scholarships) to enrol 25.37 million out-of-school children. Digital and hybrid delivery approaches can help in ensuring quality and efficiency, as well as accessing remote and rural areas that are generally hard to reach. Reliance on non-formal education/ ALPs can genuinely help in addressing the crises.
- Leverage Partnerships: Collaborate with NGOs, international donors, and the private sector to fund and deliver literacy initiatives efficiently. Educated youth can also be engaged in providing education and literacy as reliable partners.
- Innovation and efficiency: Government should focus on improving system efficiency so as to achieve maximum by relying on the existing capacity, with special emphasis on building human resource capacity and plugging system errors. In addition, innovation is the key that can really help in rapidly addressing the illiteracy and OOSC crises. Devising cost-effective, alternative, accelerated, flexible, mobile, locally appropriate, and locally governed, and other similar strategies are viable alternatives that can accelerate progress and pave the way for sustainable development.
The Time Is Now
Pakistan cannot afford to let another generation languish in illiteracy. The $885.9 billion lost over the past decade is a wake-up call—a reminder that inaction is far costlier than investment. For just $5.74 billion annually, Pakistan can educate its people, unlock economic potential, and build a future where every citizen contributes to a thriving nation. Literacy is not a luxury; it’s a necessity. By prioritizing education today, Pakistan can transform its economy, empower its people, and secure a brighter tomorrow. Join the movement for a literate Pakistan—because an educated nation is prosperous.
Sources: Pakistan 2023 Census, Economic Survey of Pakistan, UNESCO, World Bank, and Punjab education budget.
The writer has over 27 years of experience as an education and literacy advocate. He specializes in policy, planning, curriculum, and reforms, advancing non-formal education as an alternative learning system across Pakistan to enhance access, relevance, and quality in education.
