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Public Provision of Education and Government Spending in Pakistan


  • Muhammad Akram


  • Faheem Jehangir Khan


The study has been carried out to measure the incidence of government spending on education in Pakistan at the provincial (both rural and urban) level, using the primary data of the Pakistan Social Standard Living Measures Survey (PSLM), 2004-2005, and by employing the three-step Benefit Incidence Approach methodology. The paper reviews the national policies emphasising provision of education in Pakistan, as well as the trend in coverage and public sector spending on education facilities in Pakistan. The study examines the inequalities in resource distribution and service provision in relation to the government education expenditure. The rural areas of Pakistan are the more disadvantaged in the provision of the education facilities. Overall, the expenditure on the education sector is progressive, both at the regional and the provincial levels. However, variation exists in the shares of different income groups benefit from the provision of educational facilities created by public expenditure.

Suggested Citation

  • Muhammad Akram & Faheem Jehangir Khan, 2007. "Public Provision of Education and Government Spending in Pakistan," Governance Working Papers 22183, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:govern:22183

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    References listed on IDEAS

    1. Sakellariou, Chris & Patrinos, Harry Anthony, 2004. "Incidence analysis of public support to the private education sector in Cote d'Ivoire," Policy Research Working Paper Series 3231, The World Bank.
    2. Gustafsson, Bjorn & Li, Shi, 2004. "Expenditures on education and health care and poverty in rural China," China Economic Review, Elsevier, vol. 15(3), pages 292-301.
    3. Husain, Fazal & Qasim, Muhammad Ali & Sheikh, Khalid Hameed, 2003. "Analysis of Public Expenditure on Education in Pakistan," MPRA Paper 2722, University Library of Munich, Germany.
    4. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    5. Gemmell, Norman, 1985. "The Incidence of Government Expenditure and Redistribution in the United Kingdom," Economica, London School of Economics and Political Science, vol. 52(27), pages 335-344, August.
    6. Stephen D. Younger, 1999. "The Relative Progressivity of Social Services in Ecuador," Public Finance Review, , vol. 27(3), pages 310-352, May.
    7. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    8. Erwin H Tiongson & Hamid R Davoodi & Sawitree S. Asawanuchit, 2003. "How Useful Are Benefit Incidence Analyses of Public Education and Health Spending," IMF Working Papers 03/227, International Monetary Fund.
    9. David E. Sahn & Stephen D. Younger, 2000. "Expenditure incidence in Africa: microeconomic evidence," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 329-347, September.
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    Cited by:

    1. Asma, Hyder & Javaid, Zainab, 2009. "Impact of Training on Earnings: Evidence from Pakistani Industries," MPRA Paper 19570, University Library of Munich, Germany.

    More about this item


    education; public expenditure; Public Policy; Gini Coefficient; Concentration Coefficient; Benefit Incidence Approach;

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure


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