Pakistan’s literacy rate rose to 63.0% during FY2024-25, according to the Pakistan Economic Survey 2025-26 released on June 11, 2026. The rate was 60.6% a year earlier, showing a gradual improvement in the country’s education sector.
The data is based on findings from the 2025 Population and Housing Census, providing the latest nationwide picture of literacy levels in both urban and rural areas.
Although literacy has improved, the survey points out that Pakistan still faces major challenges related to access to education, quality of learning, and equal opportunities for all.
One of the key concerns remains the gap between urban and rural literacy rates. Literacy in urban areas stands at 74.0%, while rural areas record 55.0%, leaving a difference of 19 percentage points.
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The disparity reflects issues such as limited access to schools, inadequate infrastructure in rural communities, and difficulties in attracting and retaining teachers. Education specialists continue to view this divide as a major obstacle to the country’s human capital development.
During FY2025, the government spent Rs962.0 billion on education, equivalent to around 0.8% of GDP.
Despite higher spending in nominal terms, Pakistan’s education budget remains well below UNESCO’s recommended level of at least 4% of GDP for long-term and sustainable progress in the sector.
With literacy at 63%, a large segment of the population still lacks basic reading and writing skills, highlighting the need for further investment and reforms in education.