Of late, there has been a glut of alarming news items about the severe financial distress that the 34 public universities in Khyber Pakhtunkhwa face. Amid talk of department closures, fee hikes, and multiple other crises, higher education in the province faces a big question mark. At a time when institutions like the University of Peshawar are being asked to raise fees and ‘generate their own revenue,’ it becomes important to remind ourselves who pays for public education, and that the State, which already receives its money from the people, is misguided in turning something as foundational as education into a commercial enterprise.

Shifting the financial burden to students ultimately harms the very taxpayers whose children we are mandated to educate. Just as citizens finance the State, the public funding of education is intended as a national contribution to our shared conversation about equity, nation-building, and making education accessible to all.

Like many countries in the world, in Pakistan, a widespread misunderstanding persists: many citizens assume that whatever governments spend on public welfare, like roads, hospitals, educational institutions, and subsidies, is an act of generosity. This illusion is further reinforced by the administrative language of ‘grants,’ ‘favours,’ ‘bailout packages,’ or ‘relief.’ In reality, the government possesses no money of its own. All public expenditure originates from the economic labour, consumption, and contributions of the citizens, especially the working class and marginalised groups who bear the heaviest tax burden. Recognising this truth is vital for democratic thinking and for a responsible governance culture in all state institutions, including universities.

The State's financial resources come entirely from the people through direct and indirect taxes and economic activity. Income taxes from salaried workers and professionals, sales taxes on goods and services, import duties, excise duties, and withholding taxes collectively fill the national treasury. Even those who never file tax returns contribute significantly through indirect taxes embedded in everyday transactions. Citizens also support........

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