The country’s higher education sector saw major funding cut in the federal budget for fiscal year 2025-26. In the outgoing fiscal year, the government had allocated Rs66.3 billion for development projects in the higher education sector, however, for fiscal year 2025-26 only Rs39.4 billion have been earmarked for ongoing as well as 12 new schemes.
An amount of Rs66.4 billion has been allocated for recurring grant (non-development expenditure) for higher education sector against the Rs65 billion recurring grant of fiscal year 2024-25. Sources said overall recurring funds were almost stagnant for the last many years while pensions and salaries as well as utility expenditure had been increasing. According to budgetary documents, Rs38.4 billion have been allocated for 128 ongoing schemes and Rs1 billion for 12 new schemes.
The new schemes are Allama Iqbal Scholarship for Bangladesh, Uzbekistan and friendly countries for which Rs50 million have been allocated for fiscal year 2025-26, Rs50 million for construction of new academic block at Emerson University Multan and Rs100 million for development of University of Okara.
Similarly, Rs50 million have been allocated for establishment of National Institute of Science and Technology, Rajanpur, Rs100 million for establishment of NCA Karachi campus, Rs100 million for construction of hostels at UET Lahore and sub-campuses and Rs50 million have been allocated for Pak-UK Education Gateway Phase II. Similarly, Rs50 million have been earmarked for physically-challenged students in higher education institutions for providing them electric wheelchairs, laptops for blind and audio video visual scheme.
The budget document stated that for fiscal year 2025-26, Rs150 million have been allocated for University Campus at Muzaffargarh and Rs150 million for UVAS Campus, Pattoki. Similarly, Rs100 million have been allocated for strengthening academic and research programme at Bahria University Lahore Campus.
