Pakistan’s Top Universities Face Financial Crisis | Funding Shortfall

Three federally chartered universities in Pakistan—Quaid-i-Azam University (QAU), International Islamic University Islamabad (IIUI), and the Federal Urdu University of Science and Technology—are in the grip of a severe financial crisis. The institutions are struggling to pay salaries and pensions due to insufficient funding from the Higher Education Commission (HEC).

This crisis has raised concerns among faculty members, students, and policymakers as universities struggle to maintain academic and research standards while dealing with financial instability. The lack of timely funding could lead to operational disruptions, further affecting the higher education sector in Pakistan.

HEC’s Request for Supplementary Grant

• The Ministry of Federal Education and Professional Training, along with HEC, has requested the government to approve a supplementary grant of Rs2.5 billion to support these universities.

• Secretary Education Mohyuddin Ahmad Wani confirmed the request and expressed hope for a resolution.

• The delay in releasing funds has already affected routine operations, faculty payments, and ongoing research projects.

Funding Shortfall in Higher Education

HEC Chairman Dr. Mukhtar Ahmed highlighted the broader issue of financial constraints in the higher education sector:

• The funding per student has declined from Rs67,528 in 2018-19 to Rs50,956 in 2023-24.

• The total funding gap for higher education is Rs60 billion.

• This decline is directly affecting research funding, faculty recruitment, and infrastructure development in universities.

Provincial Universities Adding Pressure

• After the 18th Constitutional Amendment, provincially chartered universities became the responsibility of provincial governments.

• Except for Sindh, most provinces have not been providing adequate funds, increasing financial strain on federally chartered universities.

• Many universities in Khyber Pakhtunkhwa and Balochistan are among the worst affected due to stagnant funding while operational costs, including salaries, pensions, and utilities, continue to rise.

Call for Increased Education Budget

• The National Assembly Standing Committee has recommended increasing the education budget to at least 4% of GDP in the 2025-26 fiscal year.

• Pakistan’s current education expenditure remains one of the lowest in the region, significantly affecting the country’s global ranking in higher education.

• Proper allocation of resources is necessary to prevent universities from collapsing under financial stress.

The ongoing crisis underscores the urgent need for adequate financial support from both federal and provincial governments to sustain and enhance the quality of higher education in Pakistan. Without intervention, the situation may lead to disruptions in academic activities, layoffs, and even temporary shutdowns of key educational institutions.