Higher Education Funding Increases as HEC Development Budget Reaches Rs46bn
The federal government has increased Higher Education Funding for development projects in the 2026-27 budget, allocating Rs46 billion to the Higher Education Commission (HEC). Last year, the government allocated Rs39.4 billion for development schemes. However, despite demands from the HEC and university faculty members, the government kept the recurring grant unchanged at Rs66.4 billion.
According to budget documents, the government has allocated a total of Rs112 billion to the higher education sector through the HEC. The amount includes Rs46 billion for development projects and Rs66.4 billion for recurring expenditures. Therefore, while development spending has increased, universities will continue to operate under financial pressure due to stagnant operational funding.
Universities Continue to Face Financial Pressure
The HEC had requested at least Rs100 billion as a recurring grant for the fiscal year 2026-27. Officials argued that universities needed additional support to manage academic operations, research activities, and rising operational costs.
The commission noted that the recurring grant has remained largely unchanged since 2017-18. During this period, universities experienced growth in student enrolment, expansion of campuses, inflation, and increases in salaries and utility charges. As a result, many public sector universities now face serious financial challenges.
HEC officials warned that limited operational funding affects teaching quality, research output, and institutional performance. In addition, financial constraints make it difficult for universities to maintain academic standards and invest in innovation. Sources said senior HEC officials made extensive efforts to secure a larger allocation but did not succeed.
Education Sector Receives Additional Development Funds
The Ministry of Federal Education and Professional Training received Rs36.3 billion for development projects. A significant portion of the allocation, around Rs21.9 billion, will fund the construction of Danish schools in different regions of Pakistan.
The government also allocated funds for model colleges, scholarships, teacher training programmes, and autism support facilities. Furthermore, Rs5.29 billion has been earmarked for the Prime Minister’s youth skills development programme.
Officials believe these investments will improve educational infrastructure and expand opportunities for students. However, many stakeholders remain concerned that stagnant recurring funding could continue to affect the long-term sustainability of public universities across Pakistan.
