The federal government has allocated Rs112 billion for the Higher Education Commission (HEC) in the Budget 2026–27, increasing development spending while keeping the recurring grant unchanged, according to official budget documents.
The government raised the development budget for HEC to Rs46 billion, up from Rs39.4 billion last year, marking a notable increase in funding for ongoing higher education projects.
The allocation covers 131 development schemes worth Rs43.8 billion and Rs2.2 billion for Prime Minister’s Youth Program initiatives.
However, the recurring grant for HEC remained fixed at Rs66.4 billion, continuing a long-standing trend of stagnation despite rising operational costs in the higher education sector.
HEC had projected a recurring funding requirement of Rs138 billion and later revised its demand to Rs100 billion for the fiscal year 2026–27.
The commission argued that higher enrolment, inflation, rising salaries, and increased utility costs have significantly expanded financial needs across public sector universities.
Officials and HEC sources said repeated efforts by the HEC leadership to secure an increase in operational funding did not succeed.
The commission has warned that the unchanged recurring grant since 2017–18 is creating a widening financial gap and affecting academic and research activities in public universities.
Under the Prime Minister’s Youth Program, the government allocated funds for several initiatives, including the Green Youth Movement, National Innovation Award, Youth Development Centers, Kamyab Jawan Talent Hunt Sports League, National Volunteer Corps, and an e-sports training initiative.
The Ministry of Federal Education and Professional Training received Rs36.3 billion for 30 development projects.
Major spending includes Rs21.9 billion for Daanish Schools, along with funding for infrastructure projects, special education initiatives, teacher training programs, and skill development schemes under NAVTTC.
HEC has cautioned that public sector universities, especially federally chartered institutions, are facing increasing financial pressure. Officials say the gap between funding needs and allocations continues to impact academic operations and long-term research capacity.