Education Spending in Pakistan Falls to Record Low of 0.8% of GDP

Pakistan’s federal education spending has now dropped to an all-time low of 0.8% of GDP from once being allocated around 2% of the country’s GDP. This figure not only reveals the negligence of this sector but also a stark disconnect between political rhetoric and fiscal reality. With the second highest number of out-of-school children, deepening poverty cycle, increasing unemployment and social unrest, steps like this will only aggravate the situation and can be considered a direct assault on Pakistan’s future. 

Indeed, education shapes the future. It is impossible to eliminate poverty, reduce unemployment and create a thriving society without educating the masses. When it comes to education, it is considered a long-term investment in national progress, innovation, development, economic growth and social stability. Given the multifaceted benefits of education, all governments should prioritize investing in education.

In 2018, the share of education in Pakistan was 2% of the country’s GDP. Since then, it has been declining. Political parties criticise the government only when they are in opposition and when they are in power, they continue writing the same tragic story. It is also pertinent to mention that the government declared an “education emergency” last year. Despite this, it could not manage to increase the share of education. 

The UN has called on all countries to spend 4% to 6% of the GDP on education but the shape of education in Pakistan has fallen to a new low which is 0.8% of the GDP. The government has allocated RS 899.6 billion in the first nine months of fiscal year 2025 against RS 1251.06 billion allocated a year earlier. A 20% increase in defence spending has been noticed in this budget mainly because of the recent clashes between India and Pakistan.

The actual problem is debt servicing, accounting for over half of the federal budget, leaving limited funds for other sectors. Debt servicing has become a menace and it is nearly impossible to evade its trap without focusing on education. Only an educated society can create a future where economic growth is guaranteed.

Already over 26 million children are out of school in Pakistan. Enrolled students, particularly in rural areas, lack easy access to quality education. Social inequality, child labour and unemployment are further increasing in the country. Without access to the basic right to education, a huge number of children miss out on learning, critical development and the opportunity to shape a better future for themselves, their families and their country. If we continue to neglect education and do not prioritize it then we should be ready for acute social unrest. For the growth and progress of the nation, Pakistan needs to invest in human capital through education because it is the foundation of progress and without it, the country’s future will be on shaky grounds.

One of the biggest reasons behind this ignorance is the lack of political will. Politicians are often seen speaking about the importance of education and its role in the socio-economic growth of the country but the actual budget tells a different story because they do not prioritize long-term investment in human development in the form of education spending.

Normally, politicians push the education sector aside to invest in projects that have quick yet very minor impacts. A large chunk of the development budget is spent on the development of infrastructure like roads and flyovers while the most important sector “education” which can reshape the entire fabric of a country remains underfunded. In addition to that, fragmented planning and poor implementation of policies also leave millions of children behind.

• 0.8% of the GDP on education is far below than the UN-recommended 4% to 6% of the GDP. Government needs to understand the importance of education for long-term gains and design its policies accordingly such as increasing the share of education to enroll students and improve the overall learning environment.
• Allocated funds are also not fairly used because of corruption and mismanagement. The government should also consider transparent reporting systems and third-party audits to use the allocated resources more effectively.
• The federal and provincial governments should also strengthen local governments and institutions. Local authorities should have more control over funds to use them as per their needs and requirements.

Conclusion

Pakistan’s education spending is decreasing gradually, reaching 0.8% of the GDP in 2025. This decrease in spending will be counterproductive for the growth and progress of the country. Already, millions of children are not getting even basic education. Poverty and joblessness are rising. The situation will get only worse if this sector continues to be neglected. The government must prioritize education and increase government spending on education for a prosperous and stronger Pakistan.