Public sector universities face huge deficits

Most of them unable to pay pensions, salaries to employees able to pay pensions, salaries to employees

PESHAWAR:

Almost all public sector universities across the K-P province have been in the grip of a severe financial crisis.

The oldest varsity in the province University of Peshawar (UOP) is facing a shortfall of more than Rs400 million (40 crore) and finding it hard to pay salaries and pensions to its employees.

Islamia College University has already sought more than Rs610 million in a bailout package from the government on war footing. The crisis started in the year 2014 soon after the inception of the PTI government in the province and has been there ever since but has worsened following the Covid-19 crisis.

Talking to the Express Tribune, Registrar Peshawar University Dr Yorid Ahsan Zia said that his varsity faced Rs400 million deficit last year and it will go up further because of the Covid-19, online classes and lower number of students as many of the students left due to their financial worries.

He said that the government promised to provide Rs250 million last year to the UOP but released only Rs100 million in April and May 2020 while this year only Rs150 million were provided.

Read K-P to discontinue pension facility for new higher education employees

“In the past we were the only university in the province for private students but after the establishing of the universities in each district, students are now going to their nearest ones, depriving us of the exams fees that were our main source of income,” he said, adding that UOP has 1,450 non-teaching staff, more than 600 teaching staff as well 120 staff in the school.

“The university’s annual pension bill is more than Rs100 million and the salaries consume Rs200 million per year too,” he said. The Higher Education Department recently issued a circular directing all the varsities to not pay pension to the new recruits to help them overcome the crisis. This only invited criticism.

The University of Peshawar’s estimated budget for 2020-2021, including grant and donation, stands at Rs2,039 million.

Students related income of the university stands at Rs1,681 million. The Agriculture University of Peshawar is also facing the financial crunch as it is unable to pay pension to its employees.

An official of the university said that the university had to pay more than 300 pensions every month which is a huge liability.

He added that the Agriculture University is facing Rs900 million deficit and they had already demanded Rs500 million in government grant.

“There are 1,000 employees including teaching and nonteaching staff and it is impossible to pay them without government’s support,” he claimed, adding that Covid-19 hit them real hard.

Peshawar University Teachers Association (PUTA) President Professor Dr Fazal Nasir told The Express Tribune that such a financial crisis was not imaginable but it had happened under the PTI government.

“They are not willing to give universities a bailout package instead they asked them to cut expenses,” he blamed. “Each day something new is coming our way thanks to the HEC, effectively ruining the education sector,” he said, adding that serious steps on the part of the government were needed to overcome this crisis which has hit hard the students and staff alike. Almost every university blames the crisis on poor planning and overstaffing in the past.

“There is a department in Islamia College University employing a staff of seven but with only one student. Fees are high and not in the reach of most students so there is a decrease in students coming to universities too,” said an official.

There are 29 universities in the province established in a short span of time in the past.

The Express Tribune tried to contact Special Assistant to the CM on higher education Kamran Bangash but to no avail.

 

Published in The Express Tribune, January 18^th, 2021.