Pakistan’s federal government has earmarked Rs77 billion for education in the FY2026-27 development budget, a 17 percent increase over the previous year, while experts warn the allocation falls significantly short of what is needed to address the country’s deep education crisis.
What the Budget Actually Covers
Of the Rs77 billion total federal allocation, Rs41.19 billion goes to the Higher Education Commission for 135 ongoing development schemes, while Rs36 billion is proposed for school-level and vocational projects under the Ministry of Federal Education. New projects are minimal, with only three new HEC schemes included, carrying a combined budget of just Rs300 million. Priority areas include expanding Danish Schools to underserved regions, skill development through the PM Youth Programme, and the Pakistan Education Endowment Fund for scholarships.
Punjab’s Education Budget Shrinks
At the provincial level, Punjab — home to Pakistan’s largest student population — set aside Rs750 billion for education in FY2026-27, a 7.6 percent reduction from the previous year’s Rs811.8 billion. Development spending was cut by more than half, dropping from Rs148.5 billion to Rs63.3 billion, with school education facing the steepest cut, from Rs100 billion to Rs25.3 billion.
The Scale of the Crisis
Pakistan’s overall literacy rate stands at approximately 60.6 percent, with a significant gender gap, as male literacy reaches 68 percent while female literacy remains at around 52.8 percent, particularly in rural Sindh and Balochistan. An estimated 25.1 million children are still out of school, while nearly 90 percent of the existing education budget is consumed by salaries, leaving little room for quality improvements even when total allocations rise.
What Experts Are Calling For
Education analysts say Pakistan needs to raise education spending to at least 4 percent of GDP, which would require an annual allocation of approximately Rs4.6 trillion — several times the current combined federal and provincial spend. Without structural reform in how education resources are allocated, experts warn that additional funding risks expanding costs without improving outcomes for the children who need it most.
Frequently Asked Questions
How much did Pakistan allocate for education in the 2026-27 budget?
The federal government allocated Rs77 billion for education development in FY2026-27, up 17 percent from the previous year.
How many children are out of school in Pakistan?
An estimated 25.1 million children remain out of school in Pakistan as of 2026.
What percentage of GDP does Pakistan spend on education?
Pakistan currently spends approximately 1.9 percent of GDP on education, well below the internationally recommended 4 to 6 percent target.
