Pakistan’s education sector has reached a critical juncture as total spending on education climbed to Rs. 5.03 trillion, with households now contributing more than the government for the first time in the country’s history.
The finding was revealed in the 15th annual report on Public Financing of Education launched by the Institute of Social and Policy Sciences (I-SAPS) at a National Policy Dialogue held here on Tuesday.
According to the report, household spending on education has surged to Rs. 2.8 trillion, surpassing public sector investment of Rs. 2.23 trillion. This marks a fundamental shift in Pakistan’s education financing landscape, raising serious concerns about equity, access, and the state’s ability to ensure quality education for all, especially as an estimated 25 million children remain out of school.
The I-SAPS report is the first comprehensive analysis in Pakistan to account for both public education budgets and household-level expenditures. It shows that while the public sector contributes 44 per cent of total education financing, the remaining 56 per cent is borne by families.
Household spending includes Rs. 1.31 trillion on private school fees, Rs. 613 billion on shadow education and tuition, and Rs. 878 billion in other out-of-pocket costs such as books, uniforms, and transport.
