In public policy, few metrics are as influential and as frequently misunderstood as the Value of Statistical Life (VSL). It quietly shapes decisions across domains such as public health, road safety, disaster risk reduction, and climate adaptation. Yet, its role is often underappreciated in policy debates, particularly in developing countries like Pakistan, where competing priorities and constrained fiscal space make every allocation decision critical. In such a context, VSL should not be viewed as a theoretical construct, but as a practical and necessary tool for economic appraisal and funding prioritisation.

A common misconception is that VSL assigns a monetary value to human life. This is neither accurate nor appropriate. Instead, VSL reflects how much society is collectively willing to pay for small reductions in the risk of death. It captures trade-offs — how much safety people value relative to income or other goods. This distinction matters because it reframes VSL as a measure of societal preferences, not a judgement on human worth. When used correctly, it becomes an instrument to ensure that public investments align with what people value most: safety and survival.

For Pakistan, the case for adopting a structured approach to VSL is particularly strong. The country faces increasing exposure to climate-related disasters, including floods and heatwaves, alongside persistent challenges in urban safety, air pollution, and public health infrastructure. These risks are not only social concerns; they are also economic burdens. In the absence of a consistent framework for valuing mortality risk, there is a danger that life-saving interventions are systematically underfunded simply........

© The Friday Times