EDUCATION SECTOR BUDGET ANALYSIS
Fiscal Year 2026–27
Federal Government of Pakistan • Government of the Punjab • Government of Sindh
A comparative review of budgetary allocations to the education sector
Prepared July 2026
Compiled from official federal and Punjab budget documents (FY2026-27) and, for Sindh, from provincial budget documents as
reported in the press (see Sources)
Education Budget Analysis FY2026-27
1. Overview & Methodology
This report compares budgetary allocations to the education sector for Fiscal Year 2026-27 across the Federal
Government of Pakistan and two provinces, Punjab and Sindh. It covers both current (recurrent) and development
expenditure, and shows education's share of each government's total budget.
Two different classification systems are used in government budgets, and both are presented here because they tell
different stories:
●
Functional classification — expenditure coded specifically under the economic-function head "Education
Affairs and Services" (function code 09). This is the narrowest, most internationally comparable measure of
"education spending," but it can understate the true figure where large transfers to education entities are
booked under other functional heads (e.g. "Transfers").
●
Demand-wise / departmental classification — the full budget of each ministry/department whose core
mandate is education (e.g. School Education Department, Higher Education Commission), regardless of which
functional head individual line items fall under. This better reflects the resources actually controlled by
education administrations, but can include small non-education items housed in the same department.
Both figures are shown for the Federal government and Punjab, since the source documents provide both. For Sindh,
the uploaded documents did not include a Sindh budget book, so Sindh's figures are drawn from the Sindh Budget
Speech 2026-27 and provincial budget documents as reported by Dawn, The News and other outlets citing those
documents (see Sources, Section 5). Because Sindh figures are secondary-sourced, minor rounding or classification
differences versus the primary Sindh budget book are possible.
All federal and Punjab rupee figures are as printed in the respective FY2026-27 Budget Estimates and are quoted to the exact rupee
before rounding for display. "Bn" = billion (Rs 1,000 million); "Tr" = trillion.
2. Executive Summary
Table 1 summarises total government expenditure and education's share of it for FY2026-27, using each
government's own headline classification (functional total for Federal and Punjab; consolidated departmental total
for Sindh).
Government
Total Budget FY2026-27 (Rs)
Education Budget (Rs)
Education Share of Total
Budget
Federal Government
25,164,008 million (Rs 25.16
trillion)
194,129 million (Rs 194.13
billion)
0.77%
Punjab (functional class.)
4,993,461 million (Rs 4.99
trillion)
236,736 million (Rs 236.74
billion)
4.74%
Punjab (departmental total)*
4,993,461 million (Rs 4.99
trillion)
750,102 million (Rs 750.10
billion)
15.02%
Sindh (current + ADP)
≈3,562,000 million (Rs 3.56
trillion)
≈523,649 million (Rs 523.65
billion)
≈14.70%
*Punjab's departmental total (School Education + Higher Education + Literacy & Non-Formal Basic Education + Special Education
Departments) is markedly higher than its functional-classification total because a large share of the School Education
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Education Budget Analysis FY2026-27
Department's budget is booked under the "Transfers" functional head rather than under "Education Affairs and Services." This is
explained in detail in Section 4.
Key takeaway: on a like-for-like functional basis, Punjab devotes a far larger share of its budget to education (4.7%)
than the Federal government does (0.77%) — consistent with education being a devolved, largely provincial subject in
Pakistan since the 18th Constitutional Amendment. When Punjab's full education-department budgets are counted
(including transfers), education equates to roughly 15% of the provincial budget — a share comparable to Sindh's
~14.7%. The Federal government's own direct education spending is concentrated mainly in higher education (HEC),
federal-administered institutions, and cantonment/garrison schools, since school and college education fall under
provincial jurisdiction.
3. Federal Government
3.1 Total Federal Budget FY2026-27
The Federal Government's total authorised expenditure (Current + Development, Revenue + Capital Account) for
FY2026-27 is budgeted at Rs 25,164,008 million (Rs 25.16 trillion), up from Rs 20,270,635 million in the FY2025-26
Revised Estimates.
Source: Annual Budget Statement, Federal Budget 2026-27, Finance Division, Government of Pakistan — "Summary of Expenditure," p. 11.
3.2 Education Affairs and Services — Functional Classification
Under the functional classification (function code 09 – "Education Affairs and Services"), the Federal government's
education allocation for FY2026-27 is as follows:
Component
Budget 2025-26 (Rs mn)
Revised 2025-26 (Rs mn)
Budget 2026-27 (Rs mn)
Current Expenditure on Revenue Account
112,683
169,026
117,748
Development Expenditure on Revenue Account
55,824
52,639
76,381
Total — Education Affairs and Services (09)
168,507
221,665
194,129
Source: Annual Budget Statement, Federal Budget 2026-27 — "Current Expenditure on Revenue Account" (function 09, p. 14) and
"Development Expenditure on Revenue Account" (function 09, p. 17).
As a share of the total federal budget (Rs 25,164,008 million), the functionally-classified education allocation of Rs
194,129 million represents approximately 0.77% of total federal expenditure for FY2026-27. Within that:
●
Current education expenditure (Rs 117,748 mn) is 0.67% of total current expenditure on revenue account (Rs
17,495,417 mn).
●
Development education expenditure (Rs 76,381 mn) is 4.75% of total federal development expenditure (Rs
1,607,309 mn) — education is a comparatively larger priority within the development (PSDP-type) budget
than within current spending.
Source: Computed from Annual Budget Statement, Federal Budget 2026-27, "Summary of Expenditure," p. 11.
3.3 Sub-functional Breakdown (Current, Revenue Account)
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Education Budget Analysis FY2026-27
Sub-function
Budget 2025-26 (Rs mn)
Revised 2025-26 (Rs mn)
Budget 2026-27 (Rs mn)
091 Pre-Primary & Primary Education
5,841
5,904
6,275
092 Secondary Education
14,420
14,704
16,015
093 Tertiary Education
82,012
83,569
84,462
094 Education Not Definable by Level
3,738
4,014
3,878
095 Subsidiary Services to Education
392
406
410
096 Administration
4,825
4,457
5,224
097 Education Not Elsewhere Classified
1,455
55,973
1,484
Total (09) — Current, Revenue Account
112,683
169,026
117,748
Source: Annual Budget Statement, Federal Budget 2026-27, "Current Expenditure on Revenue Account," p. 14.
3.4 Demand-wise Breakdown (Key Federal Education Entities)
Because school and college education are provincial subjects, direct federal spending on education is concentrated in
a small number of demands (ministries/entities). The table below shows the FY2026-27 Budget Estimates for the
principal federal education-related demands, drawn from the Statement of Demand-Wise Expenditure (Schedule I):
Demand / Entity
Current (Rs mn)
Development (Rs mn)
Federal Education & Professional Training Division (Demand 38,
104)
42,748
28,411
71,159
Higher Education Commission — HEC (Demand 39, 105)
66,432
46,000
112,43
National Vocational & Technical Training Commission — NAVTTC
(Demand 41, 106)
1,092
7,901
8,993
Federal Govt. Educational Institutions in Cantonments & Garrisons
(Demand 29)
17,582
—
17,582
Combined total of the above four entities
127,854
82,312
210,16
Source: Statement of Demand-Wise Expenditure for Budget Estimates 2026-27 (Schedule I), pp. 27–29 (Demands 29, 38, 39, 41) and pp.
28–29 (Demands 104, 105, 106).
Note: this demand-wise total (Rs 210,166 mn) differs from the functional-classification total (Rs 194,129 mn) in Section 3.2 because
the two tables use different accounting lenses — a demand can include minor non-"09" functional items, and the functional table
can include education spending embedded in demands not listed above (e.g. education institutions under other divisions).
3.5 Key Observations — Federal
●
Federal education spending is dominated by tertiary/higher education: the Higher Education Commission
alone (Rs 112,432 mn) accounts for more than half of the combined federal education total shown in Section
3.4, and "093 Tertiary Education" is by far the largest sub-function in the current budget (Rs 84,462 mn of Rs
117,748 mn, i.e. ~72%).
●
The HEC's development budget was raised sharply, from an FY2025-26 revised estimate that was already
elevated, to Rs 46,000 mn for FY2026-27 (Demand 105) — the Medium-Term Budgetary Statement explicitly
cites "enhanced grant allocations…to the Higher Education Commission to support higher education and
research" as a FY2026-27 priority.
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Total (Rs
Education Budget Analysis FY2026-27
●
Education's revenue-account development allocation (Rs 76,381 mn) grew by roughly 45% over the FY202526 Budget Estimate (Rs 52,639 mn Revised), reflecting a real increase in federal development priority for
education even though its overall share of the federal budget remains under 1%.
Source: Medium-Term Budgetary Statement (FY2026-27 to FY2028-29), p. 42; figures per Sections 3.2–3.4 above.
4. Punjab
4.1 Total Punjab Budget FY2026-27
The Punjab Government's Grand Total budget (all current and development expenditure, revenue and capital
account) for FY2026-27 is Rs 4,993,461,491,000 (Rs 4,993.46 billion, or approximately Rs 4.99 trillion).
Source: Punjab Smart Book FY2026-27, Government of the Punjab, Finance Department — Schedule II, "Grand Total," p. 317.
4.2 Education Affairs and Services — Functional Classification
Under Punjab's functional classification (function code 09), FY2026-27 Budget Estimates for "Education Affairs and
Services" are:
Component
Budget 2026-27 (Rs)
Current Expenditure on Revenue Account
199,188,799,000
Development Expenditure on Revenue Account
37,546,819,600
Total — Education Affairs and Services (function 09)
236,735,618,600
Source: Punjab Smart Book FY2026-27, Schedule II — Expenditure Estimates According to Functional Classification, "09 Education Affairs
and Services": Current Revenue Account p. 312, Development Revenue Account p. 315.
This functional total (Rs 236.74 billion) equals approximately 4.74% of Punjab's total FY2026-27 budget (Rs 4,993.46
billion).
Sub-functional breakdown (Current, function 09)
Sub-function
Budget 2026-27 (Rs)
091 Pre & Primary Education
376,213,000
092 Secondary Education
39,576,566,000
093 Tertiary Education (incl. medical education)
142,187,088,000
094 Education Not Definable by Level (Special Education)
1,196,467,000
095 Subsidiary Services to Education
1,259,544,000
096 Administration
5,718,476,000
097 Education Not Elsewhere Classified
8,874,445,000
Total — Current, function 09
199,188,799,000
Source: Punjab Smart Book FY2026-27, Schedule II, p. 312.
4.3 Demand-wise (Departmental) Totals
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Education Budget Analysis FY2026-27
Punjab's Schedule I (Demand for Grants) shows the full budget controlled by each department, which is the more
complete picture of resources actually managed by education administrations:
Demand / Department
Total Voted Expenditure FY2026-27 (Rs)
103 – School Education Department, Punjab
626,084,214,000
104 – Higher Education Department
113,981,411,000
173 – Literacy & Non-Formal Basic Education
4,995,727,000
186 – Special Education Department
5,040,880,000
Combined core education departments
750,102,232,000
Source: Punjab Smart Book FY2026-27, Schedule I — Demand for Grants and Appropriation for Expenditure, pp. 307–308 (Demands 103,
104, 173, 186).
Not included above: Demand 102 "Specialized Healthcare & Medical Education" (Rs 249,954,809,000 total) is primarily a
health/hospitals department; only its "093 Tertiary Education" functional component — Rs 62,276,177,000 current + Rs
301,000,000 development ≈ Rs 62,577,177,000 — relates to medical education specifically, per Schedule II. This is excluded from
the combined total above to avoid overstating education spending with hospital-service costs.
The combined departmental total of Rs 750,102,232,000 equates to approximately 15.02% of Punjab's total FY202627 budget — over three times the functional-classification share (4.74%).
4.4 Why the Two Totals Differ
Schedule II shows that a large share of the School Education Department's current budget — Rs 551,954,710,000 — is
classified under function code "014 Transfers" (within the broader "01 General Public Service" function), not under
"09 Education Affairs and Services." Only the remainder of the department's budget (chiefly "092 Secondary
Education," Rs 39,576,566,000, plus smaller pre-primary, subsidiary-services, administration and miscellaneous lines)
is coded under function 09. This single reclassification accounts for almost the entire gap between the functional total
(Rs 236.74 billion) and the departmental total (Rs 750.10 billion).
Source: Punjab Smart Book FY2026-27, Schedule II, p. 309 (function 014 Transfers, School Education Department line).
●
Analytical implication: readers comparing Punjab's education share to other governments' functional totals
should use the 4.74% figure for a strictly like-for-like comparison; readers interested in the total resource
envelope actually available to run Punjab's schools, colleges and universities should use the 15.02%
departmental figure.
4.5 Key Observations — Punjab
●
Tertiary education (093), at Rs 142,187,088,000, is Punjab's single largest education sub-function, driven
mainly by Rs 62,276,177,000 in medical education spending (Specialized Healthcare & Medical Education
Department) and Rs 79,159,910,000 from the Higher Education Department.
●
Development spending on education under function 09 (Rs 37,546,819,600) is led by Higher Education (Rs
19,347,617,600), Secondary Education (Rs 12,118,908,000) and Literacy & Non-Formal Basic Education (Rs
3,800,000,000).
●
A further tranche of education-related capital development — school, college and special-education civil
works — is booked under function "045 Construction and Transport" (within "04 Economic Affairs") rather
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Education Budget Analysis FY2026-27
than under function 09: School Education Department Rs 13,181,092,000, Higher Education Department Rs
11,152,382,400, and Special Education Department Rs 1,720,706,000 (Development Expenditure on Capital
Account). These are physical-infrastructure allocations for education institutions and are not counted in the
function-09 or departmental totals above, but represent a further ~Rs 26 billion in education-linked capital
spending.
Source: Punjab Smart Book FY2026-27, Schedule II, pp. 312, 315–316 (function 09); p. 316 (Development Expenditure on Capital Account,
function 045).
5. Sindh
No Sindh provincial budget document was provided for this analysis. The figures below are drawn from the Sindh
Budget Speech 2026-27 and Sindh Finance Department budget documents, as reported by Dawn, The News, and
other outlets that reviewed those documents directly. Where sources reported different figures for the same item,
both are shown.
5.1 Total Sindh Budget FY2026-27
The Sindh Government's total budgeted outlay for FY2026-27 is approximately Rs 3,562,000 million (Rs 3.562 trillion),
against estimated receipts of about Rs 3,525,000 million and a projected deficit of roughly Rs 36.9 billion — the
largest provincial budget in Sindh's history. (A small number of press reports cite Rs 3.652 trillion, an apparent
transposition of the same figure; Rs 3.562 trillion is used here as it reconciles with the reported receipts and deficit.)
Source: "BUDGET FY27: Murad presents Sindh's Rs3.562tr deficit budget with no new taxes," The News, 18 June 2026; "Sindh Govt
Announces Rs3.56tr Budget 2026-27," Shafaqna Pakistan, 17 June 2026.
5.2 Current (Non-Development) Education Budget
The Sindh Finance Department's Budget Estimates for FY2026-27 propose the following current/recurrent allocations
for the three core education departments, totalling Rs 497,789 million (Rs 497.79 billion) — down from Rs 523,730
million (Rs 523.73 billion) in FY2025-26:
Department
Budget 2026-27 (Rs mn)
School Education Department (primary, middle, secondary, higher secondary)
446,958
College Education Department
41,414
Universities and Boards Department
9,417
Total — Current Education Budget
497,789
Source: "SINDH BUDGET 2026-27: School-specific budget up despite smaller outlay for education sector," Dawn, 18 June 2026, citing Sindh
Budget Estimates 2026-27.
5.3 Development (ADP) Allocation for Education
Reported development-side allocations for education vary by source, reflecting different scopes (province-wide
Annual Development Programme sector head vs. broader "education sector development" including foreign-assisted
and ongoing school-specific schemes):
●
Rs 25.86 billion (rounded to Rs 25.9bn) is the figure quoted directly from Chief Minister Murad Ali Shah's
budget speech as the ADP allocation for the "education" sector head, alongside Rs 121.66bn for local
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Education Budget Analysis FY2026-27
government, Rs 40.86bn for public health engineering, Rs 39.54bn for transport & communication, Rs
30.94bn for irrigation, Rs 17.43bn for health, and Rs 6.3bn for agriculture.
●
Rs 50.12 billion is a separately reported figure, attributed to Sindh Chief Minister's House / cabinet briefing
materials, described as total FY2026-27 development-programme funding "for the education sector"
spanning school education, colleges, universities, technical training and special education.
Source: "BUDGET FY27: Murad presents Sindh's Rs3.562tr deficit budget…," The News, 18 June 2026 (Rs25.9bn ADP figure); "Sindh
allocates over Rs50b for education sector in FY2026-27 budget," 24NewsHD, 17 June 2026 (Rs50.12bn figure).
Using the Rs 25.9 billion ADP figure (the one directly attributed to the budget speech), Sindh's combined current +
development education allocation is approximately Rs 523.65 billion, or about 14.70% of the province's total FY202627 budget. Using the alternative Rs 50.12 billion development figure, the combined total rises to approximately Rs
547.91 billion, or about 15.38% of the total budget.
5.4 Notable Line Items
●
Sindh Higher Education Commission (SHEC): allocation raised from Rs 42.29bn to Rs 45.80bn, of which Rs
44.46bn is earmarked for 32 public-sector universities and their campuses.
●
Free textbooks: Rs 5 billion for free textbook distribution (pre-primary to class 10), plus Rs 850 million
reimbursed to the Sindh Textbook Board for supply to Sindh Education Foundation-assisted schools.
●
School-Specific Budget: raised from Rs 18.67bn to Rs 22.64bn (a 21% increase), including a doubling of the
furniture-and-fixtures allocation (Rs 3.81bn to Rs 7.62bn).
●
Flood-damaged school restoration: Rs 234.9 million domestically funded, plus Rs 803.22 million under the
EU-funded DEEP Project.
●
Sindh Technical Education & Vocational Training Authority (STEVTA): grant increased to Rs 3,515.18 million
from Rs 2,550 million.
Source: "SINDH BUDGET 2026-27: School-specific budget up despite smaller outlay for education sector," Dawn, 18 June 2026.
5.5 Key Observations — Sindh
●
Sindh's headline current education budget fell in nominal terms year-on-year (Rs 523.73bn to Rs 497.79bn),
even as targeted lines — the School-Specific Budget, SHEC, and free textbooks — increased, indicating a
reallocation within the education envelope rather than a uniform cut.
●
Commentary in the press (Express Tribune, 'Sindh's education budget: the numbers that hide the collapse')
notes that Sindh's Annual Development Programme (ADP) was cut by roughly 30% overall for FY2026-27, and
that education's ADP share (Rs 25.8bn) is smaller than several infrastructure sectors' allocations (e.g. Local
Government, Rs 121.6bn; Transport & Communication, Rs 39.5bn); this figure should be read alongside the
separately reported Rs 50.12bn development figure discussed in Section 5.3.
●
The federal HEC recurring grant to public-sector universities has reportedly been held at Rs 65 billion since
FY2017-18 (a separate federal, not Sindh, allocation), which the same commentary contrasts with Sindh's
own SHEC increase to Rs 45.8bn for FY2026-27.
Source: "Sindh's education budget: the numbers that hide the collapse," The Express Tribune, June 2026.
6. Cross-Government Comparison
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Education Budget Analysis FY2026-27
6.1 Education Share of Total Budget — Summary
Basis
Education Budget (Rs
bn)
Total Budget (Rs bn)
Share of Budget
Federal
Functional classification (09)
194.13
25,164.01
0.77%
Punjab
Functional classification (09)
236.74
4,993.46
4.74%
Punjab
Departmental (Schedule I) total
750.10
4,993.46
15.02%
Sindh
Current + ADP (speech figure)
523.65
3,562.00
14.70%
Sindh
Current + ADP (cabinet figure)
547.91
3,562.00
15.38%
Government
Because the Federal government spends on education mainly through higher education, cantonment schools and
vocational-training bodies (school/college education being a devolved provincial subject), its education share of total
spending is not directly comparable to the provinces' shares. Punjab and Sindh, which run the bulk of Pakistan's public
school and college systems, allocate education shares in the same broad range — roughly 15% of their total budgets
— once departmental/consolidated totals are used rather than narrow functional-classification totals.
6.2 Total Rupee Value of Education Spending
In absolute rupee terms, and despite its far smaller share of a far larger budget, the Federal government's
functionally-classified education spending (Rs 194.13 billion) is smaller than Sindh's current-budget-only education
allocation (Rs 497.79 billion) and well below both provinces' full education totals (Punjab Rs 750.10 billion; Sindh ≈Rs
523.65–547.91 billion). This reflects the constitutional division of responsibility for education following the 18th
Amendment, under which primary responsibility for school and college education rests with the provinces, while the
Federal government retains a narrower role centred on higher education (HEC), specialised federal institutions, and
standard-setting bodies.
7. Sources
●
Annual Budget Statement, Federal Budget 2026-27, Finance Division, Government of Pakistan, Islamabad, 12
June 2026. (User-supplied document.)
●
Punjab Smart Book FY2026-27 — Estimates of Charged Expenditure and Demands for Grants, Current &
Development Expenditure, Government of the Punjab, Finance Department. (User-supplied document.)
●
"SINDH BUDGET 2026-27: School-specific budget up despite smaller outlay for education sector," Dawn, 18
June 2026 — https://www.dawn.com/news/2008652
●
"BUDGET FY27: Murad presents Sindh's Rs3.562tr deficit budget with no new taxes," The News, 18 June 2026
— https://www.thenews.pk/print/1421252
●
"Sindh Govt Announces Rs3.56tr Budget 2026-27, Includes 7% Pay Increase," Shafaqna Pakistan, 17 June
2026 — https://pakistan.shafaqna.com/EN/327801
●
"Sindh allocates over Rs50b for education sector in FY2026-27 budget," 24NewsHD, 17 June 2026 —
https://www.24newshd.tv/17-Jun-2026/sindh-allocates-rs50b-education-sector-fy2026-27-budget
●
"Rs620b set aside for education in budget," The Express Tribune, June 2026 —
https://tribune.com.pk/story/2613751/rs620b-set-aside-for-education-in-budget
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Education Budget Analysis FY2026-27
●
"Sindh's education budget: the numbers that hide the collapse," The Express Tribune, June 2026 —
https://tribune.com.pk/article/98171/sindhs-education-budget-the-numbers-that-hide-the-collapse
●
"SINDH BUDGET 2026-27: Sindh unveils Rs3.56tr budget with Rs36.9bn deficit," Dawn, June 2026 —
https://www.dawn.com/news/2008710
Disclaimer: this analysis is a compilation and computation exercise based on the source documents cited above; it is not an official
government publication. Where percentages are computed, they are rounded to two decimal places. Readers requiring figures for
budgetary, legal or financial decisions should verify against the primary source documents (Finance Division / Finance Department
budget books) or the original Sindh Budget Estimates 2026-27, which were not directly available for this analysis.
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