Khyber Pakhtunkhwa has improved its education expenditure by 11 percent in fiscal year 2025 26 and the budget has been increased to Rs 363 billion against the previous Rs 327 billion. The relocation is among initiative of ensuring that the challenge of literacy is addressed, as well as ensuring that the number of out-of-school children in the province is brought down.
The province government has declared special Education Emergency Fund of 5 billion rupees. This fund will aim at immediate changes in the state of education using infrastructure and admittance of students in rural and underprivileged locations.
Of the total budgetary allocation on education, Rs 5.9 billion has been set aside to be used in upgrading the infrastructure of more than 32000 government schools. This money will be used in repairing classrooms, supplying furniture and laboratory equipment and even recreation and sports facilities.
In a big relief to the female education, the government has decided to provide Rs 1.59 billion as monthly salaries to the community school teachers- majority of them being women. Moreover, the province has allocated Rs 8.54 billion to be used in the distribution of free textbooks.
A lot of attention is also being paid to higher education. College education budgetary allocation has been raised to Rs 50 billion against Rs 36 billion whereas university budgetary allocation has more than tripled to Rs 10 billion against Rs 3 billion. KP further intends to set up five new colleges and transform some of the current institutions into applied sciences centers at a cost of Rs 2.77 billion.
The changes are part of the provincial budget presented in June 2025 that also features no new taxes and a provincial record of Rs 547 billion Annual Development Programme (ADP).
According to the officials the declaration of education emergency is a radical move towards fixing systematic loop holes in the education system in the region and is also seen as a government long term investment in human capital.