I disagree with the notion that economy needs a fix before investing in higher education. Though I couldn't get into teaching job because of PhD requirement in unis in Pakistan I think it is good requirement and we should invest in more PhD level education.
However we need a parallel investment in 'law enforcement' in the country to ensure safety of civilians, once students go abroad and see the security and perks in foreign countries it becomes a tough choice for them to go back.
We have seen PPP denting education in past as well when Benazir withdrew S&T scholarships in 90s (her 2nd tenure?) so it doesn't come as surprise to me.