Budget 2026-27: HEC’s recurring grant kept unchanged despite demand for significant increase

The Pakistan federal government allocated Rs112 billion to the Higher Education Commission (HEC) in the 2026-27 budget, increasing the development budget to Rs46 billion while keeping the recurring grant unchanged at Rs66.4 billion, according to budget documents reported by Dawn on June 13, 2026.

The allocation for development projects rose from Rs39.4 billion in the previous cycle to Rs46 billion. However, the recurring grant has remained stagnant at approximately Rs66.4 billion for several years, despite requests from faculty and university administrators for a funding boost to combat inflation and rising costs.

Budgetary records show the recurring grant was roughly Rs65 billion in the 2017-18 fiscal year. This figure has not seen a significant increase despite higher student enrollment, the creation of new universities, and government-mandated salary hikes.

The HEC originally calculated a need for a Rs138 billion recurring grant. In a revised request, the commission asked the government for at least Rs100 billion for the 2026-27 fiscal year.

In a letter to the government, the HEC stated that the lack of funding growth is creating a structural financing gap.

Public sector universities are consequently facing acute financial stress, particularly federally chartered institutions dependent on federal recurring support through HEC. Persistent resource constraints are affecting academic functions.

Sources within the HEC told Dawn that the executive director and chairman attempted to secure an increase in the recurring grant, but those efforts were unsuccessful.

What are the primary development goals for higher education?

The government earmarked Rs46 billion for HEC development, with Rs43.8 billion dedicated to 131 ongoing schemes. An additional Rs2.2 billion is allocated to the Prime Minister’s Youth Programme.

The youth programme funding is split across several specific initiatives:

• Youth Development Centre: Rs700 million
• Kamyab Jawan Talent Hunt Youth Sports League: Rs500 million
• National Volunteer Corps: Rs400 million
• PM’s e-Sports Arena and Training Centres: Rs300 million
• National Innovation Award: Rs250 million
• Green Youth Movement: Rs50 million

How is the Ministry of Federal Education allocating its budget?

The Ministry of Federal Education and Professional Training received Rs36.3 billion for development schemes. The majority of this funding focuses on the construction of Daanish schools.

Budget documents allocate Rs21.9 billion for 17 ongoing Daanish school projects across the country, including sites in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan.

Other specific allocations within the ministry include:

• Centre of Excellence for Autism Children (H-8/4 Islamabad): Rs1,249 million
• Graduate block at NCA Lahore: Rs600 million
• Inclusive and responsive education programme: Rs350 million
• Scholarships for students from Indian-held Kashmir: Rs225 million
• Islamabad Model College for Girls (B-17 and F-17/2): Rs200 million each
• National Institute of Excellence in Teachers Education: Rs241 million
• Missing facilities in Islamabad educational institutions: Rs100 million
• Early Childhood Education Centre: Rs5 million

The budget also prioritizes vocational and skill-based training. The government allocated Rs5.29 billion for the PM’s youth skills development programme and Rs2.61 billion for the National Vocational and Technical Training Commission (NAVTTC).

Additionally, the PM’s Pakistan Fund for Education received a revised allocation of Rs3 billion.