After much criticism over a reduction in its allocations for higher education in the budget for fiscal year 2024-25, the government reversed its decision—though critics maintain the revised amount still falls short of what is required.
The reversal nets the Higher Education Commission Rs. 65 billion for its recurring budget and Rs. 55 billion for its development budget, barely sufficient to meet salaries of staff but inadequate for addressing curricula deficiencies.
Pakistan has nearly 200 higher education institutions, which turn out numerous graduates annually to an economic market that is unable to accommodate them. Many of these graduates lack the skills required for the modern workplace, hampering the potential for economic growth, unachievable without generating employment. Unfortunately, outdated curricula and archaic teaching standards are failing to train students to required standards, especially in the sciences. The country’s leadership appears to have no strategy to address this problem, as its recently unveiled Vision 2025 is silent on it.
Experts have proposed offering tax breaks for companies that set aside a hiring quota for fresh graduates, encouraging the hiring and training of new employees. This is especially necessary, as most universities in Pakistan do not offer any help to graduates in finding jobs, with only a handful boasting incubation centers to set up entrepreneurship opportunities for their students. This is also linked to a lack of funds, though research suggests the long-term benefits outweigh the costs.
Amidst the prevailing economic downturn, Pakistan must encourage small businesses, which are best placed to take a chance on fresh hires and train them for the workplace. A study of the U.S. economy found that from 1980-2005, its annual net employment growth was directly linked to small businesses. But to achieve all this, the country must first ensure quality education for its students, as failing to ensure this all-but-guarantees a workforce that may be highly educated on paper, but lacks the skills necessary to enter the workforce and generate revenue.