The Pakistan government’s economic reforms have necessitated several tough decisions, from cutting funding for vital programs to raising taxes and increasing electricity tariffs—all of which have been unpopular moves. These measures, however, are intended to avert an economic disaster in the coming years.

While the need for such difficult decisions is understood, there must be a point where the government refrains from prioritising profitability over public service. Certain sectors, particularly in countries with limited financial freedom, do not need to generate economic profit but must exist as essential services provided by the state. One such sector is education.

The Finance Ministry, in collaboration with the Higher Education Commission, the Planning Commission, the Ministry of National Health, and international monetary organisations, has indicated plans to restructure Pakistan’s public universities. The goal is to make these institutions leaner and more efficient. While this is a commendable aim, the government’s broader objective appears to include reducing funding for public universities, which is concerning.

At present, the budget allocated for higher education stands at a modest 61 billion rupees, up from 40 billion last year, with further cuts being considered. Here, a distinction must be made between improving efficiency and cutting essential funding. It is true that Pakistan’s public institutions, including universities, suffer from bureaucratic inefficiency and patronage, much like other state-run entities such as PIA. Reducing administrative bloat, trimming unnecessary staff, and freeing research and academic departments from the influence of entrenched interests are all necessary reforms.

However, if these cost-cutting measures lead to the transformation of public universities into aggressively for-profit institutions, the benefits offered to students from low-income backgrounds—such as affordable fees, scholarships, and other support—will be at risk. It is therefore crucial that the government draws a clear line. While public universities must become competitive, efficient, and streamlined, funding for non-profitable but essential areas such as research and scholarships must remain intact.