The federal government has allocated Rs117.75 billion for education in the 2026-27 budget, a modest increase from Rs112.68 billion in the previous fiscal year.

The increase is about 4.5 percent, according to budget figures reported by Business Recorder. The allocation covers different education-related heads, including school education, higher education, youth programmes and development projects.

Budget documents show that funding for secondary education development has been increased from Rs14.42 billion to Rs16.02 billion. The allocation for pre-primary and primary education has also risen to Rs5.22 billion from Rs4.83 billion.

Higher education received the largest share, with Rs84.46 billion allocated for the sector compared with Rs82.01 billion last year.

Separately, the Higher Education Commission has been allocated Rs112 billion overall. The HEC development budget has been increased from Rs39.4 billion to Rs46 billion, but its recurring grant remains unchanged at Rs66.4 billion.

The unchanged recurring grant is expected to remain a concern for universities. HEC had reportedly sought at least Rs100 billion under this head, citing rising student numbers, inflation and increasing operational costs.

Officials have said the lack of a major increase in recurring grants since 2017-18 has widened the financial gap in the higher education system.

Of the development allocation, Rs46 billion has been set aside for 131 ongoing projects. Another Rs2.2 billion has been earmarked for projects under the Prime Minister’s Youth Programme, including skills, innovation and sports initiatives.

The Ministry of Federal Education and Professional Training has been allocated Rs36.3 billion. A major portion is linked to Daanish Schools projects, while funds have also been set aside for new colleges, teacher training, scholarships and special education programmes.

Overall, the education budget reflects a limited increase, with more focus on maintaining existing programmes and continuing development projects than launching major new initiatives.

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