Pakistan Spends Less Than 1% of GDP on Education

Pakistan’s investment in education continues to lag behind international standards, with cumulative education expenditures by the federal and provincial governments in FY 2025 (July–March) estimated at just 0.8 percent of the country’s GDP. During the first nine months of FY 2025, total spending on education-related activities dropped sharply by 29.4 percent, falling to Rs 899.6 billion from Rs 1,251.06 billion in the previous year. This significant decrease comes at a time when Pakistan faces mounting challenges in literacy, school enrollment, and educational infrastructure. The current allocation is well below the global average, where most countries spend between 4 and 6 percent of GDP on education. The decline in funding has raised concerns among education experts and policymakers, who warn that such low investment threatens progress toward national and international development goals, including the Sustainable Development Goals (SDGs). Despite the government’s stated focus on education as a driver of social and economic transformation, the sector remains underfunded. The consequences are visible in key indicators: millions of children remain out of school, literacy rates are stagnant, and many public schools lack basic facilities such as electricity and clean drinking water.