ISLAMABAD: Pakistan has increased funding for the higher education sector by 31.8 percent, allocating Rs46 billion in the FY2026-27 budget compared to Rs34.9 billion in the previous fiscal year.
The increased allocation is expected to support ongoing development projects, academic infrastructure, faculty development programmes, and initiatives aimed at improving the country’s human capital and competitiveness.
Finance Minister Muhammad Aurangzeb, presenting the budget in the National Assembly on Friday, said Rs46 billion has been allocated for the higher education sector, which represents a “remarkable increase” compared to the Rs34.9 billion allocated last year.
He said that this includes provisions for scholarships for deserving students, enhancing the research capacity of universities, upgrading the Pakistan Education and Research Network, and promoting digital learning as well as an AI-based education system.
Of this amount, Rs. 34.9 billion has been earmarked for universities, the minister added. Additionally, Rs 3.6 billion has been allocated for the upgradation of the Pakistan Education and Research Network (PERN) and for the promotion of artificial intelligence (AI) and digital learning.
He said that higher education and research serve as the backbone of “our economic and social growth”.
According to the Economic Survey 2025-26 release on Thursday, the literacy rate for individuals aged 10 and above in Pakistan rose from 61 to 63 percent.
It stated that male literacy was 73 percent and female at 54 percent, reflecting a gradual progress and a narrowing gender gap.
Urban areas continued to have higher literacy rates with a total of 74 percent (81 percent for males and 68 percent for females), while rural areas had a lower rate of 55 percent (67 percent for males and 44 percent for females).
