Pakistan’s education spending drops to 0.8% of GDP as 26.2 million children remain out of school

Pakistan’s education expenditure fell to 0.8% of gross domestic product in fiscal year 2024-25 from 1.5% in FY23, according to the Pakistan Economic Survey 2025-26.

Total education spending stood at Rs962 billion in FY25, down 23% from Rs1.251 trillion in the previous reported year.

The decline reflected reductions in both federal and provincial expenditure, although spending trends varied across the provinces.

An estimated 26.2 million children remain out of school in Pakistan. This staggering figure includes approximately 13.4 million girls. 

Punjab’s education expenditure fell 64% to Rs178 billion in FY25 from Rs492.7 billion in FY23. Khyber Pakhtunkhwa recorded a 62.6% reduction, with spending declining to Rs94.78 billion.

Sindh, however, increased its education expenditure by 40% to Rs369.1 billion, while Balochistan raised spending by 49% to Rs136.9 billion.

School infrastructure gaps

The Economic Survey identified inadequate school facilities as a continuing challenge for education quality and access.

Nationwide, 59% of primary schools had access to electricity.

The figure fell to 21% in Balochistan, while only 0.3% of the province’s primary schools had toilet facilities, according to the survey.

Pakistan’s literacy rate stood at 63%, with the female literacy rate recorded at 54%.

The proportion of children out of school declined from 38% to 28%, but nearly three in every 10 children remained outside the education system.

The Economic Survey called for reforms to improve access, educational quality, learning outcomes, equity and governance at all levels.

It also stressed the need for higher and sustained public investment in education to address infrastructure shortages and improve human capital development.