Public Provision of Education and Government Spending in Pakistan

Abstract

An analysis of government expenditure on education within Pakistan to highlight those areas that need of attention.

The purpose of this paper is to understand the nature of government spending on education at a provincial and regional level while also highlighting stakeholders that have either benefited or received unjust treatment from this expenditure. Benefit Incidence Approach methodology applied on Pakistan Social Standard Living Measures Survey (PSLM), 2004-2005 reveals that government expenditure on education is progressive in nature and public subsidies are far more equitable than income distribution indicating pro poor nature of expenditure. The study establishes that rural areas face lower educational facilities and Pakistan educational system currently faces several challenges including low budget priorities, lack of teaching staff, unregulated private sector and lack of physical infrastructure which hinders the ability of the country to achieved MGDs goals.

The study recommends that distribution of benefits based on horizontal and vertical equity can bring about the desired efficiency within the education system.  It is held that government should target specific areas of concern within the education system and divert more resources towards enhancing quality and accessibility of education for poor. Government policies should be designed to provide public support including cash benefits, fee waivers and other forms of subsidies. Despite the progressive nature of education expenditure in Pakistan; the expenditure continues to be insufficient to bring about the desired change in educational sector and therefore it is strongly recommended that educational spending as a percentage of GDP is increased.

Publishing Year: 2007

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