The Pakistan Institute of Education (PIE), under the Ministry of Federal Education and Professional Training, has released the Public Financing in Education 2025–26 report showing a 72% rise in overall education spending over the last five years. The analysis highlights that while aggregate funding has grown, persistent inequities demand targeted reforms in education financing to translate budget increases into improved access and quality.
The report finds wide variations in per-student spending across administrative regions, with Gilgit-Baltistan averaging PKR 22,332 per student and the Federal Directorate of Education at PKR 72,124. These disparities reflect differing fiscal capacities and administrative structures and underscore the need for resource allocation that responds to local needs.
Provincial budget growth between 2019–20 and 2025–26 was uneven: Gilgit-Baltistan recorded the largest increase at 318%, Sindh rose by 286% with its education budget moving from PKR 169 billion to PKR 654 billion, Khyber Pakhtunkhwa grew by 141%, Punjab by 122%, while federal-level growth remained lowest at 45%. The report uses these figures to argue for smarter public spending and improved financial transparency.
To address gaps, the report recommends a gradual increase in the education budget to meet the UNESCO benchmark of 4–6% of GDP and the adoption of gender, locality and school-based budgeting within existing financial platforms. It also calls for expanded non-salary budgets without compromising teacher salaries and for the mainstreaming of gender-responsive budgeting to ensure equitable outcomes. Strengthening education financing through these measures aims to make funding both larger and more effective.
The study was launched at Allama Iqbal Open University at a ceremony attended by Minister of State for Federal Education and Professional Training Ms. Wajiha Qamar, Additional Secretary Mr. Hassan Saqlain, Director General PIE Dr. Muhammad Shahid Soroya and AIOU Vice Chancellor Prof. Dr. Nasir Mahmood. The report was prepared by PIE in collaboration with the World Bank and the Foreign, Commonwealth and Development Office, and representatives from development partners including the British High Commission, World Bank, UNICEF and the Malala Fund spoke at the event.
Authors warn that current tracking systems cannot adequately monitor how resources reach the estimated 25.37 million out-of-school children, a majority of whom are girls in rural areas. The report recommends a standardized budget tagging system and improved financial codes across provinces to enable accountability, comparative analysis and targeted interventions. Implementing these reforms in education financing is presented as central to expanding access and improving learning outcomes across Pakistan.
