Pakistan’s education spending hits Rs. 5.03T; families outspend government

Islamabad(News Desk)-For the first time in Pakistan’s history, household spending on education (Rs. 2.8 trillion) has exceeded government investment (Rs 2.23 trillion), according to a new report released today by the Institute of Social and Policy Sciences (I-SAPS). The finding, unveiled at the National Policy Dialogue to launch I-SAPS’s 15th annual report on Public Financing of Education here on Tuesday, signaled a major shift in the country’s education landscape.

Education disparity in Pakistan
Pakistani families are now bearing the majority of the Rs. 5.03 trillion total cost of education, raising serious questions around equity, access, and the state’s responsibility in providing quality education for all, according to the findings of the report.
This is the first analysis in Pakistan to comprehensively account for both public budgets and household-level education spending. According to I-SAPS, total education financing has reached Rs. 5.03 trillion. Of this, the public sector contributes Rs. 2.23 trillion, making up 44 per cent of the total. The remaining 56 per cent, amounting to Rs. 2.80 trillion, comes directly from households. This includes Rs. 1.31 trillion spent on private school fees, Rs. 613 billion on shadow education and tuition, and Rs. 878 billion in other out-of-pocket costs.
“Families are financing education at a scale that raises fundamental equity concerns,” said Dr Salman Humayun, Executive Director of I-SAPS. “When household spending surpasses public investment, we must ask who is able to afford education and who is being excluded.”
Speaking at the dialogue, Mr Mazhar Siraj, Education Team Leader at the Foreign, Commonwealth and Development Office (FCDO), emphasised the need to move beyond input-heavy approaches. He noted that outcome-based financing and efficiency reforms are critical, but innovative financing can only succeed where strong data systems and governance frameworks are in place.
Ms Izzah Farrukh, Senior Education Specialist at the World Bank, stated that the expansion of private schooling reflects the failure of the public system to meet families’ expectations. She observed that this shift represents families opting out of public schools, where responsiveness, voice, and agency have weakened over time.
Dr Shahid Soroya, Director General of the Pakistan Institute of Education, highlighted the importance of sustained evidence generation, and acknowledged the efforts of the federal ministry and development partners in strengthening annual education data consolidation.
Mr Hamed Yaqoob Sheikh, Federal Secretary for Health and former Federal Secretary for Finance, praised I-SAPS for introducing analytical frameworks that support more informed resource allocation across social sectors. He stressed the importance of independent research in supporting effective policy in fiscally constrained environments.
Ahmad Ali, Director Programmes at I-SAPS, closed the dialogue by calling for a strong public response. He said that rising private spending must be viewed as a policy signal, highlighting the need to strengthen public systems, use existing resources more effectively, and develop financing models that protect equity, particularly for girls and marginalised learners.
The dialogue concluded with broad recognition that education financing in Pakistan is at a critical turning point. Decisions made in the coming budget cycles, particularly those relating to efficiency, accountability, and innovation, will determine whether increased spending results in improved learning outcomes or further deepens inequality