The University of Karachi (KU) is facing a worsening financial crisis, with its finance director warning that the university could be pushed toward bankruptcy and may eventually struggle to pay employee salaries if its finances do not improve.
The warning follows Acting Vice Chancellor Dr. Tufail Jokhio’s approval of a house ceiling allowance for university employees despite the Sindh government rejecting a special grant for the benefit. The allowance is expected to cost KU around Rs. 500 million annually, with monthly expenses estimated at about Rs. 50 million.
The finance director reportedly objected to the decision in writing, saying the university lacks sufficient resources to absorb the recurring cost. The allowance was also approved without the reported consent of the Syndicate or Finance and Planning Committee.
KU has been dealing with financial pressures for years. A reported Rs. 1.3 billion deficit earlier this year included significant outstanding dues owed to teaching and non-teaching employees. The university had also sought financial assistance from the Sindh government after an increase in the federal house ceiling allowance was expected to add around Rs. 510 million to its annual expenses.
The financial problems have also affected academic activities, with protests over unpaid dues disrupting teaching and examinations earlier this year. Despite Sindh allocating Rs. 44.46 billion for public universities and other higher-education institutions in its 2026-27 budget, questions remain over how KU will meet its salary obligations and existing liabilities while taking on additional recurring costs.
