From an economic perspective, education can be seen as an investment in the lives of people. The economic importance of education in Pakistan is no doubt very important especially in 2020 when the government needs lot of foreign reserves. The prices are not in great favor of average class people.

Education equips people with the skills that make them more productive when performing their job tasks. It also conveys the knowledge and skills that enable people to develop and apply new ideas, which in turn bring about innovation and technological progress.

Highly qualified or graduated people will be able to generate higher incomes and be less at risk of unemployment. At the overall economy level, education can increase long-term economic growth ratio at national level.

What is educational economics?

Educational economics deals with the branch of education from an economic perspective. On the one hand, it is about how education affects the economic prosperity of both individuals and society as a whole.

Similarly, educational economics examines the causes of successful economy. It also observes for example in the specific area, the funding and resources of educational institutions. What is the quality of the institutional framework in some rural or urban area? Are the colleges enough to meet the needs of people in a target location?

Education affects overall economic prosperity

Recent scientific studies show that the educational performance of the people, have greater impacts on social values. In order to investigate this, we have summarized the results of the research conducted in 2020 by international school organization. It was conducted on the scope of mathematics and natural sciences, which is taught in many countries around.

International Growth Rate:

The finding is striking: In countries with high skilled people, the economy has grown rapidly and countries with low skills have hardly meet the jobs needs. While, for example, Singapore (SGP), as one of the countries with the best educational achievements, grew by an average of over 6-7% annually, the growth rate of Peru (PER) as one of the countries with the worst educational achievements was less than 1 percent.

Pakistan also needs to see how Singapore government is improving the standard of education? How are they starting new educational set-ups?

The impact of educational services on economic growth is extremely robust, and it remains vital even if other factors that are important for economic growth are added, such as openness to international trade and security etc.

Educational achievements

As the educational achievements are taken into account in the growth model, the mere number of years of any degree program proves to be meaningless. In other words, education only has an economic impact to the extent that it actually conveys higher skills. It is not enough to just push the school or university; what is learned is important.

Countries with strong economic growth can better equip their schools, colleges or universities with latest libraries and digital equipment. This means that inadequate educational achievements cost society at high.

Education and individual prosperity

Better economic condition pays off not only for society as a whole, but also individually. From an individual point of view, the better the level of education, the lower the risk of unemployment. In Pakistan, unemployment among people with a university degree is showing alarming situation. A good education is the best insurance against unemployment. The economic importance of education in Pakistan are numerous but we should make the arrangements for a common man here.

The system of education must be attractive not only for rich class but the lower class should feel relaxed if they send their kids to the school, college or university.