Higher education in dire financial straits

In light of Pakistan's current economic situation, the higher education sector is expected to face significant challenges. Not only has the federal government not increased the overall funding for higher education, but it has also reduced the individual funds allocated to universities in all four provinces by 1.5%.

However, the Higher Education Commission (HEC) plans to increase the individual budget of federal universities by 5.5%, contingent upon their performance. These decisions were approved during an emergency meeting of the Federal Higher Education Commission, where it was made clear that the grant of Rs64 million, which has been in place since 2018, will continue to be provided to universities in the upcoming fiscal year 2023-24.

Despite this, the federal government remains unwilling to increase the grant for universities. During the HEC meeting, there was strong opposition to cutting the grant for universities in Sindh, resulting in its rejection. Consequently, it was decided that if the grant for Sindh universities is not reduced, the grants for the remaining three provinces will be reduced, with the saved funds being allocated to federal universities. It is important to note that the grant has remained stagnant for several years, and now there are reports of potential cuts. Furthermore, some universities are resorting to taking loans to pay salaries.

The proportion of HEC grant in university expenditures is decreasing annually, leading to the suspension of book purchases in some university libraries and a shift toward online journals instead of printed copies. Moreover, laboratories are unable to acquire necessary chemicals and equipment. The deteriorating infrastructure directly impacts students and the quality of education.

Expressing his views on the grant, Dr Mukhtar Ahmed, Chairman of HEC Islamabad, confirmed that there would be no increase in the grant. The federal government has mentioned granting funds from 2018 in the field of higher education in the new budget. The HEC chairman has written letters to the four provincial governments, urging them to share the financial burden of their respective universities and increase their contributions. He specifically mentioned Sindh, noting that the Sindh government has significantly increased its grant for universities. The Sindh government's budget for the financial year 2023-24 includes an allocation of Rs.21.5 billion, up from Rs14 billion. The chief minister has approved this grant, although a ban has been placed on opening new campuses across all universities in Sindh due to the resulting financial strain.

The approved grant summary for public universities emphasizes that all professional (medical, engineering, agricultural, and technical) universities should prioritise their existing programs over establishing additional general faculties, as the latter would further burden finances.

According to the approved summary by the Sindh chief minister, universities should not rely solely on government grants as a sustainable solution for financial aid. Instead, they should utilise their own resources, develop business plans to increase income, and reduce expenses. A VC of a government university in Sindh shared his opinion, stating that their problems will continue to escalate until the federal government increases its grant.

Additionally, development grants from HEC are currently not being released. The provincial grant for NED University will increase from Rs690 million to Rs.1.14 billion due to the increased grant for government universities, totaling approximately Rs7 billion, provided by the Sindh government.

The grant for Mehran University will increase from Rs970 million to Rs1.45 billion, Dawood Medical University's provincial grant from Rs550 million to Rs890 million; Lyari University's grant, from Rs120 million to Rs180 million; Dawood Engineering University's grant, from Rs830 million to Rs1.11 billion; and the Sindh University Jamshoro's grant will be increased from Rs1.42billion to Rs1.93 billion.