of the budgets of federal or provincial governments. as a matter of fact there are three types of expenditures that are incurred. first is the public expenditure, second is the expenditures by private and nongovernmental sectors who provide schooling or health services and finally is the expenditures incurred by the households themselves in form of tuition fees, text books, purchase of medicines, vaccines etc. when all three types of expenditures are taken together we get a complete picture of the expenditures on inputs used for achieving mdgs. in addition to mdgs pakistan has developed the poverty reduction strategy ( prsp ) and more recently an ambitious medium term development framework ( mtdf ) to catch up in the other areas of human development such as secondary, vocational and technical training, higher education, science and technology teacher training, curative health services etc. too much preoccupation and the swing of pendulum towards an exclusive focus on primary education and basic health services create its own distortions and disequilibria. teachers at the primary level exhibit poor quality and performance despite many attempts at teacher ’ s training because their graduate and postgraduate education has been sub - optimal. universities are producing hundreds of thousands of graduates every year who are not all suited for ready absorption in labor market while economy is starving from a lack of technical skills. we have aspirations to become an active player in the globalized economy but capacity has to be developed in our science and technology institutions to generate the products, innovations and processes that will improve the productivity. the linkage between industry and universities is almost non - existent at present and has to be nurtured. the main argument of this paper is that while the donor emphasis and pakistan ’ s commitment to achieve mdgs are well placed and should be fully implemented a more holistic approach towards human resource development that caters both to the economic and social objectives of the country has to be adopted. the internalization of externalities, spillovers and linkages within the whole human development initiative would create efficiency and result in cost savings and thus reduced overall financing needs. second, “ all hands on the deck ” covering the federal, provincial and local governments, private sector, external donors, communities, not - forprofit institutions, civil society organizations, philanthropies and charities should be assigned roles in a more cohesive and integrated manner. the waste, duplication, overlapping can be avoided and optimal use of physical facilities and infrastructure by multiple players and pooling of resources across institutions rather than maintaining separate silos

encouraged under the current arrangements of program delivery. third, the excessive focus on public budgetary allocations on education and health has neglected the tremendous expenditures, being made by the households themselves in spending on schooling, health care, water and sanitation and also the efforts being made by other providers of these services in non - governmental sector. attention should be shifted from the level of public expenditures or its share in gdp to the productivity of these expenditures. these stereotype and meaningless indicators with which the countries are flogged for lack of their commitment are not very helpful. fourth, it is my contention that we should distinguish between financing and provisioning. while the government should be responsible for financing primary and to a large extent secondary education and basic health services particularly preventive it should have, however, no exclusivity or monopoly in providing these services. for the poor quintiles the access to quality services can be improved if the government provides scholarships, stipends, per capita grants and financial assistance to the non - governmental or quasi - governmental institutions in a transparent and targeted manner. the government is already providing several incentives to these providers in the context of its public - private partnership program which needs further strengthening in operational terms. to illustrate this point education and health in pakistan has been blessed recently with the entry or private sector, not - for - profit organizations, semi or quasi - governmental bodies ( annex i for a tentative list ). the national commission on human development, the national or provincial educational foundations, rural support programs, fauji foundation, private foundations, charitable hospitals and clinics are taking an increasing burden of provisioning every day. there is no reason that the government cannot use some of these quality institutions for financing the services targeted at the poor. so a competitive business model in which all service providers irrespective of their affiliation meeting the set criteria can provide the education, health or other services to the poor households needs to be implemented. if the above holistic framework encompassing the concept, measurement, financing, provisioning of human development is agreed upon and a consensus is reached then the issue of financing human resource development becomes less pressing. table - i financing human development 2005 - 2010 public private total basic and college education health, nutrition and populate water and sanitation skilled based literary, technology education higher education, s & t total annual the total financing requirements for human development as identified in the mtdf and estimated on the basis of household expenditures amount to rs. 2160 billion over 2005 - 2010 period or