This study examines the impact of government spending on education and health, along with other factors, on human capital formation in Pakistan. Using annual data from 1990-2020, the study finds a positive and significant association between current health expenditure, domestic government health expenditure, government education expenditures, foreign direct investment, and social protection programs, with improved human capital indicators such as education attainment and life expectancy. Population growth showed a negative association with primary education attainment. The study concludes that increased government investment in health, education, and social protection is crucial for human capital development in Pakistan.

Shazia Kousar, Farhan Ahmed, Muhammad Afzal, Juan E. Trinidad Segovia