According to a new report by the World Bank, Pakistan, and India have the largest public sectors in South Asia, with a share of 60 percent of formal wage employment. The report, titled Worldwide Bureaucracy Indicators, also found that the wage bill in South Asian countries is on average seven percentage points lower than the global average of 28 percent.
The report’s findings suggest that the public sector in South Asia is relatively large and inefficient. This could have a number of negative consequences, including increased government debt, lower economic growth, and a decline in the quality of public services.
There is also significant variation in the size and composition of the public sector across South Asia. For example, in Afghanistan, public sector wages make up half of all public spending, while in Pakistan, only three percent of public expenditure is spent on public sector wages.
The report also found that the share of women working in the public sector in South Asia is considerably lower than the global average. In the Maldives, half of all public sector employees are women, while in Afghanistan and Pakistan, females make up only 13 percent of all employees.
The report’s findings highlight the need for reform in South Asia. This could include measures to reduce the size of the public sector, improve the efficiency of public services, and increase the share of women working in the public sector.
