Pakistan's Total Education Spending Surpasses its Defense Budget

Pakistan's public spending on education has more than doubled since 2010 to reach $8.6 billion a year in 2017, rivaling defense spending of $8.7 billion. Private spending on education by parents is even higher than the public spending with the total adding up to nearly 6% of GDP. Pakistan has 1.7 million teachers, nearly three times the number of soldiers currently serving in the country's armed forces. Unfortunately, the education outcomes do not yet reflect the big increases in spending. Why is it? Let's examine this in some detail.

Pakistan Education Budget:

The total money budgeted for education by the governments at the federal and provincial levels has increased from Rs. 304 billion in 2010-11 to Rs. 790 billion in 2016-17,  representing an average of 17.5% increase per year since 2010.

Source: Dawn Newspaper

Private Education Spending in Pakistan:

2012 Data from UNESCO and the World Bank shows that the private spending on education is about twice as much as the monies budgeted by federal and provincial governments in Pakistan.

Private/Public Spending on Education in Selected Countries. Source: Economist

Education Outcomes:

UNESCO and World Bank data from 2013 shows that only 52% of Pakistani kids and 48% of Indian kids reached expected standard of reading after 4 years of school, according to the Economist Magazine. It also shows that 46% of Pakistani children dropped out of school before completing 4 years of education.

Reading Performance in Selected Countries. Source: Economist

Education and Literacy Rates:

Pakistan's net primary enrollment rose from 42% in 2001-2002 to 57% in 2008-9 during Musharraf years. It has been essentially flat at 57% since 2009 under PPP and PML(N) governments.

Source: Economic Survey of Pakistan 2015-16

Similarly, the literacy rate for Pakistan 10 years or older rose from 45% in 2001-2002 to 56% in 2007-2008 during Musharraf years. It has increased just 4% to 60% since 2009-2010 under PPP and PML(N) governments.

Source: Economic Survey of Pakistan 2015-16

Pakistan's Human Development: 

Human development index reports on Pakistan released by UNDP confirm the ESP 2015 human development trends.Pakistan’s HDI value for 2013 is 0.537— which is in the low human development category—positioning the country at 146 out of 187 countries and territories. Between 1980 and 2013, Pakistan’s HDI value increased from 0.356 to 0.537, an increase of 50.7 percent or an average annual increase of about 1.25.

Pakistan HDI Components Trend 1980-2013 Source: Human Development Report 2014

Overall, Pakistan's human development score rose by 18.9% during Musharraf years and increased just 3.4% under elected leadership since 2008. The news on the human development front got even worse in the last three years, with HDI growth slowing down as low as 0.59% — a paltry average annual increase of under 0.20 per cent.

Going further back to the  decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP,  the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.

Bogus Teachers in Sindh:

In 2014, Sindh's provincial education minister Nisar Ahmed Khuhro said that "a large number of fake appointments were made in the education department during the previous tenure of the PPP government" when the ministry was headed by Khuhru's predecessor PPP's Peer Mazhar ul Haq. Khuhro was quoted by Dawn newspaper as saying that "a large number of bogus appointments of teaching and non-teaching staff had been made beyond the sanctioned strength" and without completing legal formalities as laid down in the recruitment rules by former directors of school education Karachi in connivance with district officers during 2012–13.

Ghost Schools in Balochistan:

In 2016, Balochistan province's education minister Abdur Rahim Ziaratwal was quoted by Express Tribune newspaper as telling his provincial legislature that  “about 900 ghost schools have been detected with 300,000 fake registrations of students, and out of 60,000, 15,000 teachers’ records are unknown.”

Absentee Teachers in Punjab:

A 2013 study conducted in public schools in Bhawalnagar district of Punjab found that 27.5% of the teachers are absent from classrooms from 1 to 5 days a month while 3.75% are absent more than 10 days a month. The absentee rate in the district's private schools was significantly lower. Another study by an NGO Alif Ailan conducted in Gujaranwala and Narowal reported that "teacher absenteeism has been one of the key impediments to an effective and working education apparatus."

Political Patronage:

Pakistani civilian rule has been characterized by a system of political patronage that doles out money and jobs to political party supporters at the expense of the rest of the population. Public sector jobs, including those in education and health care sectors, are part of this patronage system that was described by Pakistani economist Dr. Mahbub ul Haq, the man credited with the development of United Nation's Human Development Index (HDI) as follows:

"...every time a new political government comes in they have to distribute huge amounts of state money and jobs as rewards to politicians who have supported them, and short term populist measures to try to convince the people that their election promises meant something, which leaves nothing for long-term development. As far as development is concerned, our system has all the worst features of oligarchy and democracy put together." 

Summary:

Education spending in Pakistan has increased at an annual average rate of 17.5% since 2010. It has more than doubled since 2010 to reach $8.6 billion a year in 2017, rivaling defense spending of $8.7 billion. Private spending by parents is even higher than the public spending with the total adding up to nearly 6% of GDP. Pakistan has 1.7 million teachers, nearly three times the number of soldiers currently serving in the country's armed forces. However, the school enrollment and literacy rates have remained flat and the human development indices are stuck in neutral.  This is in sharp contrast to the significant improvements in outcomes from increased education spending seen during Musharraf years in 2001-2008. An examination of the causes shows that the corrupt system of political patronage tops the list. This system jeopardizes the future of the country by producing ghost teacher, ghost schools and absentee staff to siphon off the money allocated for children's education. Pakistani leaders need to reflect on this fact and try and protect education from the corrosive system of political patronage networks.

Related Links:

Haq's Musings

History of Literacy in Pakistan

Reading and Math Performance in Pakistan vs India

Myths and Facts on Out-of-School Children

Who's Better For Pakistan's Human Development? Musharraf or Politicians? 

Corrosive Effects of Pakistan's System of Political Patronage

Development of Pakistan's Human Capital

Asian Tigers Brought Prosperity; Democracy Followed

Musharraf Accelerated Growth of Pakistan's Human and Financial Capital

Sustaining America's Edge in a Competitive World

In spite of America's leadership position in global competitiveness, the new US administration under President Barack Obama is asking the US Congress to more than double the federal education budget this year, as part of its stimulus package. Some of the new spending will ensure that any reductions in education budgets by local and state bodies are more than offset by additional federal dollars.

International math and science test results have consistently shown for over a decade that Asian students from China, Japan, Singapore and Korea perform better than American students. In spite of such results, the US continues to excel in scientific and technological innovation as measured by the number of Nobel prizes and number of international patent filings. Most of the recent breakthrough innovations have come from the United States. Six of the top ten highest ranked universities are in the United States. America's workers continue to be amongst the most productive in the world. There is only one Silicon Valley in the world and it is in the United States. This valley represents more of a state of mind rather than a physical place. Why is it? Do Americans focus more on scientific reasoning than facts and content? Is there greater focus on rote learning in Asia? Do Americans foster more creativity and greater exploration? Does freedom of expression in America encourage more questioning and better reasoning? There have not been any comprehensive studies to answer these questions satisfactorily. But one thing is clear: In the "New Economy", the most important single asset for any nation is the intellectual capital it develops by educating its people well. Investment in education could not be better described than by the words used by the Chinese genius Kuan Chung centuries ago: "If you plan for a year, plant a seed; if for 10 years, plant a tree; if for a 100 years, teach the people. When you sow a seed once, you reap a single harvest; when you teach the people, you will reap a 100 harvests."

The Department of Education’s discretionary budget for the 2008 fiscal year was about $60 billion. The stimulus bill would raise that to about $135 billion this year, and to about $146 billion in 2010. Other federal agencies would administer about $20 billion in additional education-related spending. The new spending represents a dramatic boost in a country which already spends more than most of the industrialized nations on education.

In recent years the federal government has contributed 9 percent of the nation’s total spending on public schools, with states and local districts financing the rest. Washington has contributed 19 percent of spending on higher education. The stimulus package would raise those federal proportions significantly. Total public and private spending on US education is close to a trillion dollars a year, about 6.8% of the 14.5 trillion dollar GDP.

In higher education, the bill would increase spending on Pell Grants, the most important federal student aid program, to $27 billion from about $19 billion this year, according to the New York Times.

“It’s a very good idea to increase Pell Grants in the stimulus,” said Terry Hartle, a senior vice president for public affairs at the American Council on Education, which represents colleges and universities. But Mr. Hartle said that even he was having difficulty tracking all the new spending. “A lot of things will go through, and only later will we know exactly what happened,” he said.

The large increases in education spending may or may not be sufficient to guarantee a continuing edge for America in the brave new world of competition. But it is very likely to help, particularly if the spending boost is accompanied by a sound education policy that encourages new technology innovation, philosophy of peaceful coexistence with other nations, achieving breakthroughs to respond to the modern challenges of climate change, renewable energy, sustainable development and a new industrial and information revolution that makes life better for all citizens of the world.