ILLUSTRATION: JAMAL KHURSHID
After borrowing heavily from private banks, NED University has now reportedly come under debt as it has to pay back Rs800 million in commercial bank loans and is currently paying Rs80 million per annum as interest to private banks.
“The university is facing a monthly deficit of Rs42 million due to payments for loans and interest to banks,” said NED University vice-chancellor, Dr Afzal Haq. The institution is reportedly facing the worst financial crisis in its history due to an increase in employees’ salaries and cuts in grants. Despite increasing fees for its postgraduate programmes, the university has been unable to control the budget deficit.
Dr Haq said that the university has been unable to pay dues to contractors who supply scientific instruments for the laboratories, fearing that they might stop supply to the university. According to Dr Haq, the university’s monthly expenditure was Rs144 million, while the income generated after collecting tuition fees and HEC grant was Rs102 million, leaving the institution with a deficit of Rs42 million. The university has not been able to give salaries to the part-time employees of the evening programme.
Published in The Express Tribune, April 21st, 2013.
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