When the Bell Stops Ringing: Pakistan’s Retreat from Education

Marium Imtiaz
In June 2025, the Government of Pakistan unveiled the federal budget for the fiscal year 2025–26, which included a sharp and unexpected cut to the federal education budget. From a previous allocation of ₨103.8 billion in the last fiscal year, the new budget brings this figure down to just ₨58 billion. This 44% decrease is not just a fiscal adjustment—it carries serious and far-reaching consequences for educational equity, access, and quality across the country. Pakistan already struggles with chronically low public spending on education. Even at its peak, the country allocated only about 1.7 to 1.9 percent of its GDP to the sector, falling significantly short of the global benchmark of 4 percent. In the current budget cycle, the education share is merely 0.33 percent of total federal expenditures. These numbers are not just abstract figures. They reflect the country’s national priorities—and education, evidently, is not one of them. While education is primarily a provincial subject under Pakistan’s federal structure post-18th Amendment, the federal government still plays a crucial role in ensuring equitable national standards, coordinating policy, and financing higher education. The withdrawal of federal support disproportionately impacts the very systems meant to promote cohesion, access, and innovation. For example, the Higher Education Commission (HEC), which supports public universities and research institutions across the country, is now under increased pressure as both its recurring and development budgets fall short of needs. The Ministry of Federal Education and Professional Training, responsible for key initiatives in basic education and federal territories, also faces budget constraints, limiting its ability to scale programs or introduce reforms. This retreat from federal responsibility shifts the financial and administrative burden to the provinces. In well-resourced and relatively stable provinces like Punjab and Khyber Pakhtunkhwa, this may be manageable. An example is KP, which has shown excellent commitment by allocating 22 percent of its provincial budget to education, that is, 362.7 billion in FY 202425. However, this is not the norm across all provinces. Balochistan, which already faces severe development challenges, allocated only ₨87 billion to education in the previous fiscal year—just 11.6 percent of its overall budget. In Sindh, despite its economic base, political instability and implementation deficits have hindered educational reform and delivery. As a result, these disparities are likely to deepen. Regions that were already underserved will fall further behind. In rural Sindh, interior Balochistan, and parts of South Punjab, where school infrastructure is fragile, teacher absenteeism is rampant, and gender gaps are stark, the absence of a strong federal hand could leave entire communities educationally isolated. Historically, federal programs have been significant in closing these gaps by injecting minimum national standards, sponsoring the education of girls, and financing school infrastructure in territories with limited provincial capacity to do so. It is perceived with a great deal of anxiety that this federal disengagement will not only entail the reduction of schools and enrolment, but also leads to worse learning outcomes and increased dropout rates. This is especially dangerous in girls. In Pakistan, where cultural and economic disincentives to educating girls are still deep-rooted, federal scholarship programs, conditional cash transfers, and gender-targeted programs have achieved some vital breakthroughs. These efforts are necessary, as otherwise, many girls, particularly those living in conservative or poor regions, will never visit the school again. Tertiary education is also threatened. state-funded universities rely on the HEC to fund staff salaries, research laboratories, and student financial aid. Universities with diminished federal funding will either shift the pressure on students by charging increased fees or will compromise on quality and research to undermine the academic foundation of the country. With universities in a global environment where research and innovation are central to economic competitiveness, there is a risk of Pakistan slipping even further behind. The brain drain, which is already a serious issue, may hasten as young faculty and researchers pursue greater opportunities in foreign countries. These changes are occurring as Pakistan enters a demographic transition. The country has more than 64 percent of its population aged below 30 years, which presents a rare chance to channel the youthful energy and potential towards national development. Yet, that possibility depends on a single, important aspect: education. The lack of investment in this sector may transform the demographic dividend into a demographic disaster. Lack of skills and a good education leaves youths with few employment prospects, causing frustration, social unrest, and susceptibility to radicalization. The way budget priorities are established is also worth considering. Defence has been allocated ₨2.55 trillion in the same budget that education has been given 58 billion, and debt servicing a mind-boggling 8.2 trillion. The two sectors alone absorb more than 60 percent of overall Pakistani expenditures. Although national security and fiscal stability are paramount, the disparity in funding is indicative of a disturbing disinvestment in human capital development. Education is not a cost it is an investment in the economic strength of the nation, the democracy, and the social fabric. A risk exists that innovation in the education sector will stagnate. Pakistan is a country that has started to experiment with digital learning tools, trauma-informed pedagogy, and inclusive education models in recent years. Such pilots frequently depend on federal support and coordination. With federal funding shrinking, the ability to scale up such innovations will also wither. Left to their own devices, provinces might not have the resources or political will to pursue them meaningfully. In the face of these obstacles, however, ways can be found. The federal government needs to rethink its present position and replenish important education spending, especially to vulnerable areas and underserved populations. A national equalization fund may assist in equalizing provincial differences so that the right of a child to education is not dictated by the postal code in which he/she is born. More federal and provincial education spending transparency and efficiency could also help to stretch current resources further. The contribution of partnerships with the private sector and civil society can provide a supporting role, however, it cannot replace regular public investment. Basic and higher education in particular are forms of public goods that require state longevity. It might also be valuable to institutionalize the significance of education by integrating education goals into national development plans and budgets thereby making it beyond the electoral cycle. After all, the drastic reduction in federal spending on education is not merely a question of figures–it is a question of national priorities. It poses a basic question: what future does Pakistan want? One that capitalizes on its youth, knowledge and innovation? Or that keeps on undermining itself? Education is not a luxury good to a nation grappling with increasing inequality, an unstable economy, and a weak democracy. It is also the most effective instrument that Pakistan can use to carve out a more equal, prosperous and stable future. To give it up at this moment would be an error whose consequences are too profound to calculate.