Pension costs strain K-P universities

Governor Ghulam Ali blames PTI policies for financial woes at province’s campuses

PESHAWAR:

Khyber-Pakhtunkhwa (K-P) is grappling with a significant financial crisis, with over 20 public sector universities burdened by substantial fiscal deficits.

The primary culprit behind this dire situation is the burgeoning cost of pensions for retired employees, according to K-P Governor Haji Ghulam Ali.

Governor Ali, speaking at a media event held at Governor House Peshawar, highlighted how past political administrations had exacerbated the issue by compelling universities to hire their favored individuals, often neglecting to allocate sufficient resources to sustain these institutions.

He expressed concern over the policies pursued by the Pakistan Tehreek-e-Insaf (PTI) government, which, in his view, had a detrimental impact on the financial stability of public universities in the province. These policies included budget cuts that weakened the universities, despite their vital role in educating future generations.

Governor Ali emphasized that educational institutions should not be seen as profit-generating entities but rather as essential investments in the nation’s future.

He also pointed out that the PTI government had appointed vice chancellors (VCs) from outside the province for half of K-P’s universities, neglecting local candidates.

He argued that many universities were hastily established without proper planning or budget allocation. These hurried decisions, he believed, were often politically motivated, leading to a lack of comprehensive surveying and resource allocation for essential economic aspects.

He expressed dissatisfaction with university rankings, even noting that historically significant institutions like Edwards and Government College Peshawar failed to secure honorable rankings. Governor Ali stressed the government’s right to hold VCs accountable for their institutions’ performance.

Furthermore, he revealed that only one percent of the budget was allocated to research, and eight universities in the province were currently without a VC. Additionally, seven VCs were set to retire in the coming months.

The governor underscored the financial strain posed by pensions, with a substantial portion of the budget dedicated to supporting retired personnel.

He assured that the government was actively exploring policies and solutions to alleviate this burden on public sector universities.

He lamented the lack of foresight by previous administrations in establishing new universities. He argued that thorough consideration and resource allocation were lacking, plunging these institutions into deep financial crises.

He pointed out that over 20 universities in K-P were grappling with financial difficulties. Furthermore, he highlighted the staggering situation at Swat University, where only 35 students were enrolled, despite the annual expenditure running into billions.

In closing, Governor Ali expressed his commitment to resolving the financial crisis in K-P’s universities, citing its direct impact on the nation’s prosperity and progress.

It may be noted that the University of Peshawar (UoP) faced a critical situation in August when it was unable to meet its payroll obligations.

 

Published in The Express Tribune, September 14^th, 2023.