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Federally Chartered Universities Struggle Amid Funding Crisis
Major universities—QAU, IIUI & Federal Urdu University—are struggling to pay salaries! HEC seeks Rs2.5B emergency funds, but the education sector faces a massive Rs60B shortfall.
ND
by News Desk
2025-03-05
Federally Chartered Universities Struggle Amid Funding Crisis

Three federally-chartered universities—Quaid-i-Azam University (QAU), International Islamic University Islamabad (IIUI), and the Federal Urdu University of Science and Technology—are grappling with a severe financial crunch, making it difficult to pay salaries and pensions.

The crisis stems from low funding by the Higher Education Commission (HEC), which, along with the Ministry of Federal Education and Professional Training, has requested the government for a supplementary grant of Rs2.5 billion to address the financial difficulties of these institutions.

Funding Shortfall Threatens Higher Education

Education Secretary Mohyuddin Ahmad Wani confirmed that a request for emergency funds had been made. “Yes, we have moved a summary seeking Rs2.5 billion for QAU, Urdu University, and IIUI. These universities are in dire need of funds,” he stated, expressing hope that the issue would be resolved soon.

However, sources within HEC reveal that the financial woes extend far beyond these three universities. The higher education sector is currently facing a funding gap of Rs60 billion, a crisis that has been escalating over the years.

Shrinking Budgets, Growing Crisis

HEC Chairman Dr. Mukhtar Ahmed previously informed a National Assembly standing committee that the education budget shortfall has worsened significantly. “The higher education sector has been struggling with financial constraints for years. The shortfall stood at Rs17.7 billion in 2018-19, and it has now ballooned to Rs60.1 billion,” he stated.

HEC had requested Rs125 billion for the current fiscal year, but only Rs65 billion was allocated. The funding gap has also affected students, with the recurring grant per student dropping from Rs67,528 in 2018-19 to Rs50,956 in 2023-24.

Need for Greater Budget Allocation

The National Assembly committee has emphasized the urgent need to increase education spending to at least 4% of GDP in the 2025-26 budget to prevent further deterioration of the sector.

Compounding the issue, an HEC official highlighted that after the 18th Amendment, funding for provincially chartered universities became a provincial responsibility. However, apart from Sindh, most provinces are failing to provide adequate financial support, forcing HEC to divert its limited resources to these institutions at the expense of federally chartered universities.

“Our major funding is being spent on provincial universities. Now we are urging provinces to fulfill their responsibility and provide sufficient funds to their universities,” the official said.

Bleak Future for Universities Without Additional Funding

The financial strain has particularly impacted universities in Khyber Pakhtunkhwa and Balochistan, where institutions are struggling to manage operational expenses, including salaries and utility bills.

“In the upcoming budget, we will request both federal and provincial governments to allocate the necessary funds for universities. Without proper funding, the higher education sector cannot progress,” the HEC official warned.

The fate of thousands of students and faculty members now hangs in the balance, awaiting urgent financial intervention to sustain the country’s top educational institutions.
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HEC

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FundingShortfall

EducationCrisis

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