Islamabad – April 29, 2025 — The Federal Government of Pakistan significantly ramped up its current expenditure on key social sectors during the fiscal year 2023-24, with major allocations and actual spending exceeding initial budgets in health, education, and social protection, according to a report released by finance ministry on Tuesday.
Despite these areas being constitutionally devolved to the provinces following the 18th Amendment, the federal government continues to play a vital supplementary role.
Health Sector Sees Over 85% Increase in Spending
In FY2023-24, the federal government allocated Rs. 24.2 billion for health-related expenditures. However, actual spending soared to Rs. 45 billion—an 85% increase. The rise was primarily driven by Rs. 21.3 billion contributed by provinces for the Expanded Program on Immunization (EPI), which remains a central effort in Pakistan’s child health protection strategy.
The Pakistan Institute of Medical Sciences (PIMS) and the Federal Government Polyclinic (FGPC) in Islamabad remained key beneficiaries. PIMS alone received Rs. 5.2 billion, up from its Rs. 4.0 billion budget. Other notable disbursements included Rs. 4.9 billion for Sheikh Zayed Hospital in Lahore and Rs. 3.93 billion for FGPC.
The EPI initiative—targeting preventable childhood diseases—was significantly bolstered through contributions from Punjab (Rs. 11.23 billion), Sindh (Rs. 5.12 billion), Khyber Pakhtunkhwa (Rs. 3.49 billion), Balochistan (Rs. 1.15 billion), and ICT (Rs. 258 million).
Education Spending Crosses Rs. 100 Billion Mark
Education expenditure also saw a major jump. From an original allocation of Rs. 98.5 billion, actual spending rose to Rs. 114 billion. The bulk of this went to grants through the Higher Education Commission (HEC), which received Rs. 68.5 billion—higher than its Rs. 65 billion allocation.
In Islamabad Capital Territory, schools and colleges consumed Rs. 21.5 billion, while Federal Government Educational Institutions (FGEIs) nationwide used Rs. 13.1 billion. Significant investments were made under the World Bank-supported ASPIRE program, with Rs. 8.6 billion spent against an initial budget of Rs. 1.5 billion.
Education funding focused on expanding access and quality from primary levels to higher education, including scholarship and research support. Over Rs. 9 billion were spent through HEC on universities and research programs in ICT, AJK, and Gilgit-Baltistan.
Social Protection Remains Top Priority
The largest share of federal social sector spending in FY2023-24 went to social protection, with Rs. 478.7 billion disbursed. The Benazir Income Support Programme (BISP) received the lion’s share—Rs. 466 billion—matching its budget exactly.
Under BISP, the Kafalat unconditional cash transfer program disbursed Rs. 358 billion to beneficiaries across Pakistan, with Punjab receiving the highest share at Rs. 169 billion, followed by Sindh (Rs. 95.7 billion), KP (Rs. 67 billion), and Balochistan (Rs. 17.8 billion).
Other social protection initiatives included the Taleemi Wazaif (Rs. 59.7 billion), Nashonuma Nutrition Program (Rs. 34.6 billion), and scholarships for undergraduates (Rs. 4.1 billion). Relief packages for daily wage workers and Ramzan subsidies were also provided.
Pakistan Bait-ul-Mal (PBM), another vital safety net program, received Rs. 4.2 billion for its poverty alleviation services, with additional Rs. 3.4 billion spent on operational expenses.
A Commitment to Inclusive Growth
The federal government’s expanded role in social sectors reflects its continued commitment to inclusive development, especially in underserved regions and vulnerable populations. While the 18th Amendment devolved health and education to the provinces, federal spending continues to bridge resource gaps, strengthen national programs, and promote equity.
With sustained allocations and rising actual expenditures, Pakistan’s social sector investment during FY2023-24 marks a significant step toward achieving long-term human development goals.