Islamabad, Apr 7, 2025: Several public Universities Struggling Financially in Pakistan, particularly three federally chartered institutions, have been in discussions with the finance ministry for over two months, seeking additional financial support due to the severe financial strain they are experiencing.
Despite the education ministry’s submission of a request in January for a grant of Rs2.5 billion, no decision has yet been made. This delay has left these institutions, including Quaid-i-Azam University, International Islamic University Islamabad (IIUI).
Federal Urdu University of Science and Technology, struggling to manage their day-to-day operations. The universities are facing significant challenges in paying salaries and pensions, with a lack of funds to cover basic expenses.
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According to sources within the education sector, the financial situation of these universities is part of a larger issue affecting nearly all public sector universities in the country. The government has not allocated sufficient funds to meet the needs of the higher education sector for the current fiscal year.
Leading to financial shortages that hinder both operational and developmental activities. As one faculty member from IIUI explained, the education ministry had already moved a proposal in January, but the finance ministry has yet to respond.
The Higher Education Commission (HEC) has also expressed concern, as universities continue to grapple with financial difficulties. The sector has been dealing with a funding shortfall of approximately Rs60 billion. Dr. Mukhtar Ahmed, the chairman of the HEC.
Previously highlighted that this deficit has grown over the years, with a Rs17.7 billion shortfall recorded in 2018-19. By the current year, this gap has increased to Rs60.1 billion, with the HEC’s actual funding requirement far outstripping the allocated budget.
Public universities are now facing a dire situation, where basic functions such as paying faculty and staff are at risk. Despite the challenges, there are plans to allocate more funds for the higher education sector in the upcoming budget, as officials have assured that the next fiscal year will see an increase in funding to address these financial issues.
In the meantime, the government has promised that these universities will receive the additional Rs2.5 billion grant as a temporary measure to help them through this fiscal year.
However, while public universities struggling financially, the government is simultaneously moving forward with expensive educational projects.
The construction of Daanish University in Islamabad is expected to cost Rs25 billion, and multiple Daanish schools are being planned in various provinces. This spending, while aimed at expanding education opportunities, raises questions about the priorities of funding in the education sector.
In light of the ongoing budgetary constraints, there is growing pressure to increase the education sector’s share of national funding.
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Education experts and committees have emphasized the need for a dedicated budget allocation for higher education.
Universities Struggling Financially is becoming a central theme in discussions about the future of education in Pakistan, as the sector faces both fiscal challenges and uncertain prospects for improvement.
