Human Capital and Economic Performance of Pakistan

In this paper we will study the relationship between human capital and economic performance in the light of Human Capital index and Economic Performance Index. Secondary data for the period of 1972-D2018 was collected from World Development Indicators, Pakistan Economic Survey, and State Bank of Pakistan reports. Different statistical techniques were applied to determine long run and short run relationship between variables. The findings of study show that there is a positive and significant relationship between human capital and economic performance. Thus, the Government should increase investment in education and health to make the human capital more effective.