Islamabad, Pakistan: Pakistan education spending fell to 0.8% of GDP in FY2025, while the national poverty rate rose to 28.9% in 2024-25, the Pakistan Economic Survey 2025-26 showed.
The survey said education expenditure stood at Rs962.0 billion in FY2025, down from Rs1,251.06 billion in the previous reported year. The decline marked a 23% nominal drop.
The poverty headcount rose from 21.9% in 2018-19 to 28.9% in 2024-25. The survey said the increase reversed a previous declining trend and reflected pressure from inflation, food insecurity and external shocks.
The poverty line increased from Rs3,757.85 per adult equivalent per month in 2018-19 to Rs8,484 in 2024-25. Rural poverty rose to 36.2%, while urban poverty increased to 17.4%.
Balochistan recorded the highest poverty rate at 47.0%, followed by Khyber Pakhtunkhwa at 35.3%, Sindh at 32.6% and Punjab at 23.3%. The survey said poverty remained significantly higher in rural areas.
Read: Pakistan Budget 2026-27 Outlay Set At Rs17.5trn
Income inequality also widened. The national Gini coefficient rose from 28.4 in 2018-19 to 32.7 in 2024-25, with Sindh recording the highest provincial inequality at 35.9.
Education cuts varied across provinces. Punjab’s education spending fell from Rs492.7 billion in FY2023 to Rs178 billion in FY2025, while Khyber Pakhtunkhwa’s spending dropped to Rs94.78 billion. Sindh’s spending rose to Rs369.1 billion, and Balochistan’s increased to Rs136.9 billion.
The survey found that only 59% of primary schools nationwide had electricity. In Balochistan, 21% had electricity, and 0.3% had toilets.
The literacy rate stood at 63%, with female literacy at 54%. The survey found that the share of out-of-school children fell from 38% to 28%, but nearly one in three children remained out of school.
