Budget 2026-27 allocates Rs77bn for education, but only five new HEC and ministry projects make it to PSDP.
Details of the education sector development budget for the next financial year have been revealed, showing that Rs77 billion has been allocated for education, including higher education, in the 2026-27 budget.
, the federal government has included only five new projects of the Higher Education Commission and the Ministry of Federal Education and Professional Training in the PSDP. Budget documents show that Rs77 billion will be spent on the education sector in the next financial year. Of this amount, Rs41.19 billion has been allocated for the Higher Education Commission, while Rs36 billion has been proposed for federal education projects.
Despite the overall allocation, the federal government appears to have largely ignored new development initiatives in the education sector. According to the documents, only five new projects of HEC and the Ministry of Education have been included in the PSDP. These include three new development projects of HEC and two new development projects of the Ministry of Federal Education and Professional Training. For HEC’s new projects, only a symbolic amount of Rs300 million has been set aside.
The new HEC projects include a university in Upper Chitral and transport facilities for Nusrat Bhutto University in Sukkur. The Higher Education Commission will spend Rs41 billion on 135 already launched projects. This means the bulk of HEC’s development budget will go toward continuing existing schemes rather than starting major new initiatives. The limited allocation for fresh projects highlights the government’s cautious approach toward higher education expansion in the upcoming budget.
The Ministry of Federal Education will spend only Rs1.2 billion on two new projects. Of this, Rs600 million has been proposed for digital learning projects. Another Rs600 million has been set aside for the roll-out of the Matriculation Tech project. The remaining Rs34.8 billion will be spent on 31 projects already underway.
The budget documents include a plan to establish Danish schools in Azad Kashmir, Gilgit-Baltistan, Chitral and Sindh. A total of Rs4.60 billion will be spent on Danish schools in the next financial year. The initiative is part of the government’s broader education development programme for underserved regions. The Prime Minister’s Youth Skill Development Program has been allocated Rs3.29 billion.
Another Rs3 billion has been set aside for the Pakistan Education Endowment Fund. Ongoing projects dominate education budget The proposed education development budget shows that most of the funding for FY2026-27 will be directed toward ongoing projects. While higher education, digital learning, technical education and skill development remain part of the budget framework, the limited number of new projects suggests that fresh education sector expansion will remain restricted in the next financial year.
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