ISLAMABAD: According to local media reports, three federally chartered universities in Islamabad are grappling with a severe financial crisis, making it difficult for them to manage salaries and pensions for their staff. The institutions affected include Quaid-i-Azam University (QAU), International Islamic University Islamabad (IIUI), and the Federal Urdu University of Science and Technology. The funding shortage has been attributed to insufficient financial support from the Higher Education Commission (HEC).
Sources revealed that both the HEC and the Ministry of Federal Education and Professional Training have requested an additional grant of Rs2.5 billion from the government to address the financial issues faced by these universities. An education ministry official confirmed that a summary seeking these funds had been submitted, expressing optimism that the matter would be resolved soon after gaining approval from relevant authorities.
Meanwhile, reports indicate that the higher education sector in Pakistan is dealing with a financial shortfall of Rs60 billion. This crisis has been escalating for several years, starting with a deficit of Rs17.7 billion in 2018-19. The current fiscal year saw HEC’s funding requirements at Rs125 billion, but only Rs65 billion was allocated, significantly widening the funding gap.
The funding shortage has also led to a reduction in the recurring grant per student, which dropped from Rs67,528 in 2018-19 to Rs50,956 in 2023-24. Recognizing the growing crisis, a parliamentary committee had recently recommended increasing the education budget to at least 4 percent of the GDP in the fiscal year 2025-26.
An HEC official highlighted that, following the 18th Constitutional Amendment, funding provincially chartered universities is primarily the responsibility of provincial governments. However, except for Sindh, most provinces have not been providing adequate funds, which has increased the financial burden on HEC at the expense of federally chartered universities.
The official further explained that a significant portion of HEC’s budget is spent on supporting provincial universities, leaving limited resources for federally chartered institutions. The overall funding for HEC has remained stagnant in recent years, while expenses related to salaries, pensions, and utilities continue to rise. The financial strain has been particularly severe for universities in Khyber Pakhtunkhwa and Balochistan.
HEC officials emphasized the need for increased financial support from both federal and provincial governments in the upcoming budget, warning that without adequate funding, the higher education sector would struggle to advance.