- Invest in modern laboratories, digital libraries, and e-learning tools to enhance the academic environment
Education is the foundation of national development, fostering innovation, economic growth, and social progress. In Pakistan, however, the higher education sector has long suffered from chronic underfunding, which has subdued research, infrastructure development and quality education. The federal budget for the fiscal year 2025-26 continues this trend, with insufficient allocations for universities and research institutions. This underinvestment threatens Pakistan’s ability to produce skilled professionals, conduct meaningful research and compete in a knowledge-driven global economy.
Higher education sector in Pakistan faces numerous challenges, including old-fashioned curricula, inadequate research facilities, and a shortage of qualified faculty. The Higher Education Commission (HEC), the regulatory body for universities, has repeatedly highlighted the financial constraints that hinder its ability to improve standards. Despite increasing enrollment rates, the quality of education has deteriorated due to budget cuts and inflation.
In previous years, the government allocated less than 1% of GDP to education, far below UNESCO recommended 4-6%. The new budget does little to reverse this trend, with higher education receiving a meager share compared to other sectors. This neglect exacerbates brain drain, as talented students and researchers seek opportunities abroad where funding and facilities are stronger.
The current budget has allocated only PKR 65 billion for higher education, a figure that fails to meet the growing demands of the sector. When adjusted for inflation, this amount represents a real-term decrease in funding. The relevant areas that will be affected by this underinvestment include:
Research and Development (R&D)
Pakistan’s spending on R&D is among the lowest in the world, at just 0.2% of GDP, compared to India’s 0.7% and China’s 2.4%. This budget does not prioritize research grants, laboratory upgrades, or international collaborations. Without adequate funding, Pakistani universities cannot contribute meaningfully to scientific advancements or technological innovation.
Infrastructure
Many universities struggle with crumbling infrastructure, overcrowded classrooms, and outdated equipment. Faculty salaries remain stagnant, discouraging highly qualified professors from joining or staying in academia.
Faculty Development and Hiring
The budget does not allocate sufficient funds for new faculty hires, training programs, or modernizing facilities. This will further degrade the quality of education.
Scholarships and Student Support
Thousands of deserving students rely on government scholarships to pursue higher education. However, the budget cuts in this area limit opportunities for low-income families, exacerbating educational inequality. Without financial aid, many bright students are forced to abandon their studies or turn to substandard private institutions.
Digital and Technological Upgradation
The global shift toward digital education necessitates investments in e-learning platforms, high-speed internet, and smart classrooms. Unfortunately, the 2025-26 budget does not prioritize digital transformation, leaving Pakistani universities lagging behind regional competitors.
Consequences of Underinvestment
The persistent underinvestment in higher education has severe long-term consequences:
1- Economic Stagnation
A weak higher education system produces graduates who lack the skills needed in a competitive job market. This leads to high unemployment rates and reliance on foreign expertise, hindering economic growth.
2- Brain Drain
Talented students and researchers migrate to countries with better-funded academic environments, depriving Pakistan of its intellectual capital.In 2023, Pakistan experienced a significant migration of its highly qualified and skilled young population. The emigrating educated youth included:Engineers: 23,500, Doctors: 2,500 and IT Experts: 12,000. This significant trend of skilled individuals leaving the country is continuing into the current year.This brain drain weakens the capacity of the country for innovation and development.To retain its youth workforce, the government ought to create and enact new policies designed to foster entrepreneurship and drive economic expansion.
3- Declining Global Rankings
Pakistani universities continue to rank poorly in global assessments due to inadequate funding. Without investment, they cannot improve research output, faculty qualifications, or international collaborations.
4- Social Inequality
Underfunding higher education disproportionately affects students from low-income backgrounds, perpetuating cycles of poverty and limiting social mobility.
Recommendations
To address these challenges, the federal and provincial governments must take urgent steps:
Increase Budget Allocation: At least 4% of GDP should be allocated to education, with a significant portion dedicated to higher education and research.
Enhance Research Funding: Establish competitive grant programs to encourage innovation and collaboration with international institutions.
Improve Infrastructure: Invest in modern laboratories, digital libraries, and e-learning tools to enhance the academic environment.
Expand Scholarships: Increase financial aid for eligible meritorious students to ensure equitable access to quality education.
Public-Private Partnerships: Encourage private sector investment in universities to supplement government funding.
The underinvestment in higher education reflects a short-sighted approach that will jeopardize Pakistan’s future. The governments must recognize education as a priority and allocate sufficient resources to build a knowledge-based economy. Investing in higher education today is an investment in Pakistan’s tomorrow.
The writer is a Dean Faculty of Dentistry, Baqai Medical University