Pakistan’s age dependency ratio in 2024 was 69 per cent, meaning that for every 100 working-age individuals, there are approximately 69 dependents, according to the World Bank.

Now, admittedly, this statistic can be misleading. Dependents are those who are under the age of 15 or over the age of 64. As per the World Bank, Pakistan’s poverty level is at 45pc, pushing children and the elderly into the working class, albeit usually in the informal economy.

Thus, those whose age entitles them to be dependents are pushed to earn because there aren’t enough sources of revenue in a household to allow them to follow age-appropriate pursuits, such as education or rest.

Compared to peer countries such as India and Bangladesh, Pakistan’s decline in the dependency ratio has been significantly slower. One reason is the higher population growth rate: 1.5pc in Pakistan, versus 1.2pc in Bangladesh and 0.9pc in India, as per the World Bank. More children mean more dependents and fewer resources to go around.

Much has been said about Pakistan’s demographic dividend — a large young population that can be an ‘engine of growth’. However, without sufficient resources to educate and skill youngsters, it has pushed kids out of schools and into the streets to earn a living however they can.

Published in Dawn, The Business and Finance Weekly, July 8th, 2025