he world is facing many crises, from climate change and inequality to political instability. At the heart of these issues lies our current economic model. It prioritises growth over people and the planet. It is not a hyperbole to posit that the time is ripe for a new approach to economics that puts the well-being of both the people and the planet at its centre. This is precisely what doughnut economics, a theory developed by Kate Raworth, a renegade economist, aims to achieve.

A doughnut model presents a radical shift from traditional economic thinking. Instead of aiming for endless growth, it emphasises the need to create an economy that is regenerative and distributive by design. The doughnut model represents a visual framework of two concentric rings: the inner ring represents the minimum standards of human well-being; the outer ring represents the ecological ceiling beyond which we must not tread.

Pakistan, like many other developing countries, faces several economic challenges, including high poverty rates, high levels of inequality and environmental degradation. The doughnut economics offers some policy prescriptions that can help Pakistan address these issues while ensuring sustainable economic growth.

First, Pakistan needs to prioritise investment in its human capital. This means investing in education, healthcare and social safety nets to ensure that everyone has access to basic services and can live a dignified life. A well-educated and healthy population is critical for economic growth. Investing in these areas will help reduce poverty, inequality and social exclusion.

Second, Pakistan must transition to a circular economy. A circular economy is where resources are reused and recycled, minimising waste and reducing environmental impact. This transition will require investment in new technologies and infrastructure as well as the adoption of new business models that prioritise resource efficiency and waste reduction. Such a move could create new jobs and economic opportunities while reducing Pakistan’s carbon footprint.

Third, Pakistan must promote gender equality and women’s empowerment. Women make up half of Pakistan’s population but their contribution to the economy is often undervalued and overlooked. Gender inequality in Pakistan is reflected in low rates of female labour force participation and limited access to education and healthcare.

Promoting gender equality can lead to economic benefits, such as increased productivity and improved social outcomes. To effectively tackle the challenges posed by exponential population growth, it is essential that the policy discourse is closely integrated with strategic planning and programming for critical investments in human capital and the empowerment of women.

A doughnut model represents a visual framework of two concentric rings: the inner ring represents the minimum standards of human well-being; the outer ring represents the ecological ceiling beyond which we must not tread. 

Fourth, Pakistan must prioritise renewable energy. Pakistan is currently heavily reliant on fossil fuels. This contributes to environmental degradation and poses a significant threat to human health. Transitioning to renewable energy sources, such as solar and wind, can not only reduce Pakistan’s carbon footprint but also create new jobs and drive economic growth.

Pakistan has already made some progress in this area with the launch of the Alternative Energy and Renewable Policy, and the introduction of incentives for renewable energy projects. The government must continue to invest in renewable energy infrastructure and create a conducive policy environment for private sector investment in this sector.

Pakistan must also promote inclusive and democratic governance. A strong democracy and participatory decision-making processes are critical for promoting equitable and sustainable economic growth. This requires strengthening institutions and ensuring that everyone has equal access to the decision-making process. The policy prescription warrants increased transparency in public sector procurement, devolution of decision-making authority and resources at the local level along with capacity-building and incentive compatibility measures.

Implementing these policy recommendations requires much more than a cookie-cutter formula or a silver bullet approach. Pakistan has already taken some steps towards building a more sustainable and inclusive economy. For example, Pakistan has committed to achieving 60 percent renewable energy in its energy mix by 2030, and the government has launched several programmes to promote women empowerment and social protection. However, more needs to be done and the governments must take bold and decisive actions to address the economic challenges facing the country.

This requires political will and strong leadership to drive change and mobilise the resources towards sustainable and inclusive economic growth along with creating an enabling environment to spur private sector investments.

Doughnut economics offers a radical new approach to economics that can help Pakistan address its economic challenges while ensuring sustainable and inclusive growth. By prioritising investment in human capital, transitioning to a circular economy, promoting gender equality, prioritising renewable energy and promoting inclusive governance, Pakistan can build a more resilient and equitable economy that works for everyone.

The current economic and ecological crisis might be an opportune time for Pakistan to embrace this new economic model and create a better future for all its citizens.

The writer is a Fulbright scholar with a master’s degree in international development studies and a public policy advisor. He can be reached at okhan1@gwu.edu