UoP receives Rs325 million lifeline

Varsity hanging on by the skin of its teeth as financial woes hit hard

PESHAWAR:

The Khyber-Pakhtunkhwa (K-P) government has disbursed Rs325 million to the University of Peshawar (UoP) to address its financial woes and enable timely salary payments for its employees.

This move, recommended by the Higher Education Department and sanctioned by the Finance Department, is a vital lifeline for the university.

This financial allocation will play a pivotal role in ensuring that UoP can honor its payroll commitments for the month of August.

Dr Bakhat Jehan, the Vice Chancellor of UoP, expressed his appreciation for this decision, highlighting the government’s commitment to resolving the institution’s ongoing financial crisis. He noted that concerted efforts were being made to navigate the university out of this challenging situation.

UoP’s financial struggle has been escalating, with its deficit swelling to a staggering Rs1.5 billion. Surprisingly, this predicament has garnered limited attention from the administration and provincial government. Despite the early disbursement of July’s salaries in light of Eid on June 20, the university found itself unable to meet its salary obligations, plunging its employees into financial distress.

The total monthly requirement, including pensions for retired staff, hovers around Rs360 million, while the annual budget for UoP is Rs5 billion. The deficit stands at official estimates of Rs1.5 billion and unofficial estimations of Rs2 billion.

Delays in salary disbursement arise from the intricate process of forwarding salaries to the Accountant General (AG) office, where technicalities have proven to be a roadblock. The university’s treasurer has struggled to manage this process efficiently, resulting in routine payment delays, as highlighted by an official.

The situation has evoked frustration among Class IV employees, who bear the brunt of these recurring salary delays. Their grievances underscore the need for a streamlined system.

Caretaker Minister for Higher Education Justice (Rtd) Irshad Qaisar, chaired a meeting to review budget approvals for universities.

 

Published in The Express Tribune, August 30^th, 2023.