Human capital is generally considered as a positive contributor in the
economic growth. In this study, we estimate this relationship using time
series data of Pakistan for the period 1978 to 2007. A health adjusted
education indicator for human capital is used in the standard CobbDouglas
production function confirms the long run positive relationship
between human capital and economic growth in Pakistan. Sensitivity
analysis was also performed in order to check the robustness of the initial
findings. The estimation results supported the findings of the previous
studies that human capital is positively related to growth and also that the
results are robust. The health adjusted education indicator was found to
be a highly significant determinant of economic growth, which indicates
that both the health and education sectors should be given special
attention in order to ensure long run economic growth.