Three prominent federally chartered universities in Pakistan are facing a severe financial crisis, with difficulties in disbursing salaries and pensions, according to a report by Dawn. Quaid-i-Azam University (QAU), International Islamic University Islamabad (IIUI), and the Federal Urdu University of Science and Technology (FUUAST) are among the institutions grappling with insufficient funding from the Higher Education Commission (HEC).
To address the crisis, the HEC and the Ministry of Federal Education and Professional Training (MoFEPT) have sought a supplementary grant of Rs2.5 billion from the government. Secretary Education Mohyuddin Ahmad Wani confirmed the request, stating, “We have submitted a proposal for Rs2.5 billion to support QAU, Urdu University, and IIUI. We are hopeful for a swift resolution once approved.”
The broader higher education sector is reeling under a staggering Rs60 billion funding shortfall. HEC Chairman Dr Mukhtar Ahmed revealed that while the commission required Rs125 billion for the current fiscal year, only Rs65 billion was allocated. He also highlighted a concerning decline in funding per student, dropping from Rs67,528 in 2018-19 to Rs50,956 in 2023-24, further straining universities’ operational capabilities.
The National Assembly Standing Committee has urged the government to increase the education budget to at least 4% of GDP in the 2025-26 fiscal budget. However, challenges persist as provincial governments, except for Sindh, have largely failed to adequately fund provincially chartered universities since the 18th Constitutional Amendment. This has placed additional financial pressure on the HEC, diverting resources from federally chartered institutions.
An HEC official warned that universities in Khyber Pakhtunkhwa and Balochistan are particularly hard-hit, with stagnant funding failing to keep pace with rising salaries, pensions, and utility costs. “A significant portion of our budget is consumed by provincial universities, leaving federally chartered institutions underfunded,” the official noted.
The HEC plans to advocate for increased federal and provincial funding in the next budget, emphasizing that the higher education sector cannot thrive without adequate financial support. “We will urge governments to prioritize university funding to ensure the sector’s growth and stability,” the official added.
