Pakistan's higher education sector stands at a critical juncture, with the need for a constitutional resolution on funding and provincial roles becoming increasingly urgent. Following the Parliament's passage of the 27th Amendment, expectations are high that the next constitutional change will tackle the persistent financial and administrative disputes between the federation and the provinces, notably concerning the National Finance Commission (NFC) Award and the future of higher education.
The Looming Funding Crisis and Constitutional Imperative
The financial backbone of the country's universities is under severe strain. The federal Higher Education Commission (HEC), the primary regulator and facilitator for institutions nationwide, has operated on stagnant funding for nearly six years. This paralysis comes at a time when provincial contributions are uneven. While Sindh and Punjab have started to financially support their chartered universities, the regions of Khyber Pakhtunkhwa, Azad Jammu & Kashmir, Gilgit-Baltistan, and Balochistan have not made substantial contributions. This disparity is causing the funding gap to widen alarmingly.
Therefore, a clear and finalised mandate for both federal and provincial HECs, including a sustainable funding formula, is imperative. The year 2026 must bring the clarity and stability that the higher education system desperately needs to function effectively across all regions of Pakistan.
2025 in Review: Policy Maturity Meets Implementation Gaps
Against this backdrop of financial uncertainty, the outgoing year 2025 can be characterised as a period of consolidation rather than dramatic expansion. Building on earlier reforms, the sector's focus remained on aligning graduate skills with market needs, updating curricula, enhancing digital infrastructure, and fostering international academic links.
A significant policy development was the introduction of mandatory internships and industry-relevant certifications within undergraduate programs under the new Undergraduate Education Policy. Although the goal of boosting graduate employability is widely supported, many universities continue to face challenges in establishing meaningful partnerships with industries. There is a risk that these internships could devolve into mere formalities instead of providing valuable, structured learning experiences. This highlights a greater need for building institutional capacity rather than issuing more top-down directives.
Curriculum, Digital Shifts, and International Success
Curriculum reform continued in key fields such as pharmacy, food sciences, nutrition, and computing, with efforts to engage industry, particularly in the IT sector. However, updated syllabi alone cannot compensate for outdated teaching methods, inadequate laboratories, and poor research facilities, especially in resource-constrained institutions.
Digital transformation saw progress through expanded online platforms, data centres, and better campus connectivity, helping to bridge the gap between well-equipped and remote universities. Yet, adoption rates were inconsistent, reflecting differences in leadership commitment and institutional readiness.
On a positive note, Pakistani students continued to excel internationally, securing the highest number of Erasmus Mundus scholarships and benefiting from new bilateral initiatives. These achievements underscore the competitiveness of Pakistani students, but universities must work harder to translate this international exposure into improved teaching and research practices back home.
Faculty development programs, led by the National Academy of Higher Education (NAHE) and including events like FLAME 2025, received sustained attention. However, their long-term impact will remain limited without parallel reforms in university governance and financial autonomy.
The Road Ahead for 2026
Overall, 2025 was a year that demonstrated policy maturity but also exposed deep-seated implementation gaps. Universities engaged more with social and civic issues, though often in a project-based rather than strategic manner. As Pakistan moves into 2026, the central challenge is unmistakable: strengthening institutional capacity and ensuring sustained public investment in higher education. This fundamental issue of funding and governance remains unresolved, despite repeated commitments from stakeholders. The constitutional process presents a crucial opportunity to address this core challenge and set a stable course for the future of Pakistan's universities and its youth.
The writer, Muhammad Muneeb ur Rehman, is a Tsinghua alum and Gold Medallist in Public Policy. He can be reached at engr.mmrehman@gmail.com
