Pakistan allocated only 0.8% of its Gross Domestic Product (GDP) to education during FY 2025-26, according to the Pakistan Economic Survey 2025-26 released on June 11, 2026.
The latest figures show that despite ongoing challenges in the education sector, public spending on education remained below 1% of GDP, a level that education experts have long considered insufficient for meeting the country’s learning and development needs.
Education Spending Reached Rs. 962 Billion
According to the survey, federal and provincial governments collectively spent:
💰 Rs. 962 billion
on education during FY 2025-26.
The expenditure covered various areas, including:
- Schools and colleges
- Public universities
- Teacher training programs
- Educational infrastructure
- Learning and development initiatives
However, the overall allocation remained significantly lower than international recommendations for education spending.
Budget 2026-27 Puts Focus on Education Funding
The report comes a day before the presentation of the Federal Budget 2026-27, where education funding is expected to remain an important policy discussion.
Education analysts believe increased investment is needed to address key challenges such as:
- Low literacy rates
- Out-of-school children
- Teacher shortages
- Digital learning gaps
- Limited school facilities in underserved areas
HEC Received Funding for Development Projects
The survey also revealed that the Higher Education Commission Pakistan (HEC) received:
💵 Rs. 34.905 billion
for development projects during FY 2025-26.
The allocation covered:
- 129 ongoing projects
- 12 new projects
- 6 previous PSDP projects of public universities and HEC
These projects focus on improving higher education infrastructure, research facilities, and academic development.
Concerns Over Long-Term Education Investment
Despite these allocations, the Economic Survey highlights a broader concern regarding Pakistan’s education financing.
Experts argue that sustained investment is necessary to:
- Improve learning outcomes
- Expand access to quality education
- Strengthen human capital development
- Support economic growth through a skilled workforce
The latest figures indicate that education continues to receive a relatively small share of national resources compared to the sector’s importance for long-term development.
Education Spending Remains a Key Challenge
With millions of students enrolled in schools, colleges, and universities across the country, education stakeholders are expected to closely watch future budget allocations and policy measures aimed at improving educational outcomes and expanding opportunities for learners nationwide.
