Pakistan slashes health, education budgets while boosting parliament and cabinet allocations

The Pakistani government has unveiled sweeping changes in its Public Sector Development Program (PSPD) for 2025–26, significantly reducing funding for critical sectors such as climate change, health, education, and human rights while sharply increasing development spending for parliamentary and cabinet-related projects.

Climate change funding halved

The Ministry of Climate Change and Environmental Coordination has seen its budget nearly slashed in half -- from PKR 5.2 billion in 2024–25 to just PKR 2.7 billion for the upcoming fiscal year. This drastic cut comes despite Pakistan being one of the most climate-vulnerable countries in the world, with the World Bank warning that climate-related threats could shrink the nation’s GDP by up to 20% by 2050.

However, a new PKR 100 million initiative, “Green Skills for Climate Resilient Development,” has been introduced to promote green entrepreneurship and innovation.

Deep cuts in health and education

The federal PSDP has been capped at PKR 1 trillion, with major reductions in health and education allocation.

The National Health Services Division’s budget has been reduced from PKR 24 billion to PKR 14 billion, while the Higher Education Commission (HEC) faces a steep decline from PKR 61 billion to PKR 39 billion.

Similarly, the Federal Education and Professional Training Division’s funding has been cut from PKR 20 billion to PKR 13 billion.

Despite these cuts, over PKR 9 billion has been allocated for the development of five public sector universities, including the University of Gwadar (PKR 2.49 billion), Women University Bagh (PKR 1.80 billion), FATA University (PKR 1.76 billion), University of Chitral (PKR 1.72 billion), and University of Sahiwal (PKR 1.37 billion). Besides, PKR 100 million each has been reserved for establishing four new Islamabad Model Colleges.

Human rights budget slashed, Cabinet Division tripled

One of the most dramatic cuts has been in the Human Rights Division, where funding plummeted from PKR 104 billion last year to just PKR 23 billion this year. In stark contrast, the Cabinet Division’s allocation has nearly tripled -- from PKR 25 billion to PKR 70 billion.

Moreover, PKR 7.4 billion has been earmarked for “Construction of Additional Family Suites for Members of Parliament, including 500 Servant Quarters at G-5/2, Islamabad,” a project approved by the Executive Committee of the National Economic Council (ECNEC) in February 2025.

Transport sector sees major allocation

In the transport sector, the federal government has allocated a combined PKR 42.7 billion for the Green Line Bus Rapid Transit (BRT) system in Karachi. Of this, PKR 29.19 billion is for ongoing development, while PKR 13.5 billion is designated for operational costs, including fleet management and infrastructure support.

The project aims to enhance mobility, ease traffic congestion, and reduce carbon emissions in the city.

The budget for the fiscal year 2025-26 will be officially presented later today, sparking debates over the government’s spending priorities amid pressing economic and environmental challenges.