Transforming Landscape of Higher Education Expenditure in Pakistan
Over the decades, changes in American household spending trends have influenced global education patterns. The surge in healthcare and college tuition costs has altered how families allocate their expenses. In the 1980s, an average American household apportioned one-third of its income to housing, 20% to food, and 15% to transportation, with smaller percentages for apparel, entertainment, retirement, savings, and miscellaneous expenses.
However, by the 2020s, the scenario had dramatically shifted. College student debt skyrocketed, with average loans escalating from $13,000 (adjusted for inflation) in 1985 to over $31,000, sometimes soaring to $100,000-200,000. These trends, although originating in the U.S., often extend to Europe and subsequently influence Pakistan.
In Pakistan, the evolution of education expenses has been profound. In the early 1990s, sending a child to university was manageable for urban middle-class households. New universities like NUST, GIKI, FAST, and LUMS introduced modern systems and curricula but with significantly higher costs, altering perceptions about undergraduate education costs.
Since the 2000s, traditional degrees like BA/BSc/MA/MSc have lost allure, prompting newer universities to emulate the modern educational approach of ’90s institutions. However, this led to increased undergraduate costs, creating a divide between institutions offering quality education and those providing nominal degrees.
With the average monthly income in Pakistan around Rs41,545, annual tuition fees at renowned universities range from Rs300,000 to Rs1,600,000, posing a significant challenge for households. Families must now meticulously plan and save for years to afford higher education.
Two distinct categories of Higher Education Institutions (HEIs) have emerged: those providing effective education, facilitating career success, and others offering nominal degrees with uncertain prospects.
Amid rising tuition fees, many institutions employ flashy marketing tactics without delivering substantial education. Consequently, the Higher Education Commission should prioritize transparency by collecting and publishing relevant data on employment rates, graduation rates, salaries post-graduation, and costs, aiding informed decisions.
As public contributions to education dwindle and costs escalate, families demand greater value. The regulator must offer transparency, empowering people to make informed choices amid evolving constraints and circumstances.