Pakistani households are now spending more on education than the government, underscoring deep structural weaknesses in public education financing and intensifying concerns about inequality and state responsibility. A newly released report presented at a national policy dialogue revealed that families spent an estimated PKR 2.8 trillion on education, exceeding the government’s allocation of PKR 2.23 trillion. As a result, Pakistan’s total education expenditure has reached PKR 5.03 trillion, with households contributing 56 percent of the total while the public sector accounts for only 44 percent.

The findings were shared during the launch of the 15th annual Public Financing of Education report by the Institute of Social and Policy Sciences (I-SAPS). This marks the first nationwide assessment to merge official education budgets with household-level spending, offering a more comprehensive view of how education is financed in the country. According to the report, families spent PKR 1.31 trillion on private school fees, PKR 613 billion on tuition and coaching centers, and PKR 878 billion on related costs such as books, uniforms, and transportation.

I-SAPS Executive Director Salman Humayun warned that the growing reliance on private spending poses serious equity challenges. He noted that when families are forced to outspend the state, children from poorer households face an increased risk of being excluded from education altogether. Participants at the policy dialogue linked rising private expenditure to ongoing shortcomings in public schools, including declining quality, weak accountability, and limited responsiveness.

Experts emphasized that simply increasing education budgets will not resolve these issues. Instead, they called for improved governance, greater efficiency, and outcome-focused financing to restore confidence in the public education system. Federal officials acknowledged progress in education data collection but stressed the importance of independent research to guide policymaking amid ongoing fiscal constraints.