Vanishing Campuses: How Economic Shifts and Policy Shortcuts Are Undermining Higher Education in Pakistan

Written by Dr. Fariha Gul

In recent years, both public and private universities in Pakistan have been reporting alarming drops in student admissions. While administrators struggle to meet enrollment targets, the roots of this issue lie far deeper than marketing failures or demographic dips. The real story is about shifting socio-economic priorities, policy-level inconsistencies, and a redefined value of higher education in the eyes of the people.

The First Stream: Affordability in an Economic Crunch

Pakistan’s worsening economic situation has had a ripple effect across all sectors, but education—particularly higher education—is among the hardest hit. For a growing number of families, the cost of university education, especially in the private sector, has become unaffordable. As inflation erodes household incomes and essential commodities consume the bulk of earnings, education is often the first major expense to be cut or postponed. This challenge is compounded by rising tuition fees, lack of effective need-based financial aid, and shrinking public subsidies in the higher education sector.

Even public universities, which once offered an affordable pathway to social mobility, are becoming less accessible due to ancillary costs (transport, accommodation, books) and limited capacity. As a result, students from low- to middle-income backgrounds are increasingly opting out of the higher education trajectory.

The Second Stream: Policy-Level “Solution Jumping” and its Consequences

Parallel to the economic challenges, government responses have leaned heavily on what can be termed as “solution jumping.” In the face of rising unemployment and fiscal pressure, policymakers have turned to quick fixes such as promoting self-employment, digital entrepreneurship, and remote freelancing. These options are championed by officials across various platforms—from televised press conferences to YouTube channels and startup competitions.

While such alternatives are not inherently flawed, the manner in which they are positioned—as substitutes rather than supplements to formal education—poses a long-term risk to the fabric of higher education. With increasing official emphasis on earning through platforms like Amazon, Fiverr, and Daraz, the message received by youth is clear: higher education is no longer necessary to earn a decent living.

This perception is further reinforced by social media influencers and anecdotal success stories of dropouts turned millionaires. In a climate where salaried individuals with degrees often struggle financially, while freelancers with basic skills boast global clients and dollar incomes, the social discourse around the value of education has shifted dramatically.

The Shrinking Job Market and Its Role

Contributing to the crisis is the near-collapse of Pakistan’s manufacturing and industrial sectors due to energy shortages, import restrictions, and political instability. These industries traditionally absorbed large numbers of graduates in engineering, business, and technical fields. With these avenues shrinking, even graduates find it hard to justify their educational investment in a saturated and stagnant job market.

The public narrative once associated higher education with economic mobility and social prestige. Today, it is increasingly seen as an expensive gamble with poor returns. The idea of “earning without degrees” is not just gaining traction—it is redefining career planning across socio-economic strata.

Consequences for the Future of Universities

This two-pronged crisis—economic pressure on families and government-led devaluation of degrees—is reshaping the future of higher education in Pakistan. Universities, particularly in the private sector, are already facing financial stress. Lower admissions mean lower revenue, leading to cuts in faculty positions, research funding, and student services. In some cases, institutions are compromising quality standards to attract more students, further weakening public trust.

More dangerously, if these trends continue unaddressed, the country may experience a gradual dismantling of its intellectual infrastructure. The loss of interest in academic research, critical thinking, and structured professional training could have generational consequences, limiting Pakistan’s ability to compete globally in innovation, governance, and sustainable development.

Rethinking the Role of Higher Education

There is an urgent need for policymakers to stop treating higher education as a luxury and start positioning it as an essential tool for national development. Rather than pitting digital entrepreneurship against formal education, a more integrated model is required—where universities become hubs for innovation, digital skills, and applied learning.

It is also imperative to restore public trust in the higher education system through improved governance, regulation of private sector practices, and renewed public investment. Without addressing both the economic burden and the policy narrative, the downward trend in university admissions will not just continue—it will accelerate.

References:

Pakistan Economic Survey 2023–24. Ministry of Finance.

Higher Education Commission (HEC) Strategic Plan 2023.

UNDP Pakistan Report on Youth Employment Trends, 2023.

World Bank Education Data: Pakistan Country Profile, 2024.

“Digital Freelancing Trends in Pakistan.” P@SHA Industry Report, 2023