Education is the seed of change, sowing growth, stability, equity, and national transformation.
Education is the foundation upon which a nation’s development and progress are built, empowering individuals with the knowledge, skills, and innovation necessary to drive economic growth, social stability, and technological advancement. A well-funded education system is essential for enhancing literacy rates, academic achievement, critical thinking, and problem-solving skills. Adequate budget allocation for education is vital for fostering quality human capital, promoting innovation, and boosting a country’s global competitiveness.
By prioritising education in national budgetary decisions, governments can ensure a skilled workforce, stimulate economic growth, alleviate poverty, and enhance social mobility, ultimately paving the way for a prosperous and sustainable future. Moreover, investing in education can have long-term benefits, including reduced inequality, improved health outcomes, and increased civic engagement, making it a crucial component of a nation’s overall development strategy. Effective budget allocation for education can also lead to better educational infrastructure, teacher training, and access to quality education for all, thereby bridging the gap between different socio-economic groups and promoting a more equitable society.
In Pakistan, public education is mainly financed through government budgets, with international donors providing supplementary support. The level of government investment in education is typically measured as a percentage of the Gross Domestic Product (GDP), reflecting the importance placed on education in national policymaking. Although less reliant on foreign aid than some other developing countries, Pakistan still experiences substantial donor influence, with international agencies playing a key role in shaping education policies and reform agendas.
Education budgets in Pakistan are divided into recurrent and development expenditures, with recurrent spending dominating the majority of the budget. Consequently, this allocation leaves limited room for crucial developmental investments, such as infrastructure improvements, teacher training, and innovative teaching methods. Furthermore, the imbalance in spending across different education levels poses a significant concern, as a disproportionate emphasis on higher education often comes at the expense of primary and secondary schooling. This skewed allocation hampers the development of foundational learning, particularly in underserved regions. Moreover, education spending varies across Pakistan’s provinces, shaped by factors like demographics, economic conditions, and administrative capacity. Despite increased allocations, the sector continues to grapple with deep-seated issues, including a narrow focus on academic pathways, underdeveloped vocational and technical training, outdated teaching practices, inadequate facilities, and weak governance. Additionally, institutional inefficiencies, corruption, and poor monitoring systems compromise reform efforts and limit the effectiveness of public spending.
Varying emphasis
Over the last 25 years, Pakistan’s education budget allocation has seen fluctuations, with varying emphasis on different education levels. In 2023, education expenditure as a percentage of GDP was estimated at 1.5%, down from 1.7% in the previous year. Looking further back, Pakistan’s education spending as a percentage of total government expenditure was 12.19% in 2018, 11.59% in 2019, 10.80% in 2020, and 7.82% in 2021. Some notable budget allocations include a 204% increase in the federal education budget for the upcoming fiscal year (prior to 2024-25), from Rs8.50 billion to Rs25.75 billion. However, the bulk of education spending typically goes towards recurrent expenditures like teacher salaries, leaving limited room for developmental investments.
Additionally, there’s often an imbalance in spending across education levels, with a disproportionate emphasis on higher education. To understand the trends and patterns in education budget allocation, it’s essential to examine the federal and provincial government expenditures over the years. If we look at the budget 2024-25, the budget allocation to educational sector shows a significant increase at the federal level, with a 204% hike from Rs8.50 billion to Rs25.75 billion. Breaking it down, 46% of the federal government’s allocation goes towards development, while 54% covers current expenditures. The total education budget as a percentage of GDP has been raised from 1.5% to 1.91%, with the federal government allocating Rs215 billion, Punjab Rs673 billion, Sindh Rs508 billion, KP Rs393 billion, Balochistan Rs162 billion, AJK Rs48 billion, and Gilgit-Baltistan Rs33 billion. However, despite this increase, the allocation still falls short of the international commitment of 4% of GDP, which would require Rs4,242 billion. The bulk of the expenditure, Rs79.312 billion, is allocated for Tertiary Education Affairs and Services, accounting for 76.5% of the total allocation.
Despite fluctuations in budget allocation over the last 25 years, Pakistan’s education sector continues to receive a disappointingly small share of the country’s resources. Education expenditure as a percentage of GDP has hovered around 1.5% to 1.7%, far short of the international commitment of 4% of GDP. Although there have been notable increases in budget allocations, such as the 204% hike in the federal education budget for 2024-25, the overall trend suggests a lack of prioritization of education in national budgetary decisions. The bulk of education spending typically goes towards recurrent expenditures like teacher salaries, leaving limited room for developmental investments.
Furthermore, the imbalance in spending across education levels, with a disproportionate emphasis on higher education, and the allocation of a significant portion of the budget towards tertiary education, raises concerns about the effectiveness of budget utilization. The persistent gap between the allocated budget and the required amount to meet international standards underscores the need for a significant increase in investment in education to drive meaningful development and progress in the sector.
It is necessary for the state to realise the fact that education is not merely an expenditure but a vital investment in a nation’s future, empowering individuals with knowledge, skills, and innovation to drive economic growth, social stability, and technological advancement. Pakistan’s education sector, however, continues to face significant challenges, including inadequate budget allocation, imbalance in spending across education levels, and weak governance.
To address these issues, policymakers should prioritise education in national budgetary decisions, aiming to meet the international commitment of allocating 4% of GDP to education. A more equitable allocation of resources across different education levels, with a focus on primary and secondary schooling, is essential.
Additionally, investments in teacher training, educational infrastructure, and vocational training can help foster quality human capital and promote innovation. Effective governance and monitoring systems should be established to ensure transparency and accountability in public spending.
By recognising education as a critical investment in the nation’s future, Pakistan can unlock the potential of its citizens, drive economic growth, and pave the way for a prosperous and sustainable future. Policy recommendations include increasing budget allocation for education, reforming education governance, promoting vocational training, ensuring equitable access to quality education for all, implementing teacher training programs, introducing technology-integrated learning, enhancing public-private partnerships, establishing education funds for underprivileged students, promoting research and development, and strengthening education data systems for informed decision-making.
Authors are the Students of BSS-IV, Department of H&SS-Bahria University Karachi Campus.