Universities across Khyber Pakhtunkhwa (KP) are struggling to cope with a severe financial crisis, with losses exceeding 15 billion rupees. Over 34 universities in the province are affected, facing a widening gap between their expenditures and income.
The total expenditures of these institutions have surged to 34 billion rupees, while their income remains at a mere 18 billion rupees. Rising salaries and pension payments have worsened the financial situation, contributing significantly to the disparity.
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Adding to the burden, the Higher Education Commission (HEC) has frozen an annual grant of Rs 9.4 billion since 2018, further limiting the financial resources of these universities. However, the provincial government has stepped in, providing a grant of 1.9 billion rupees for the fiscal year 2023-24.
In order to meet their pension and grant obligations, universities require an additional 13 billion rupees, with 8.75 billion rupees needed specifically for pension settlements. Experts have suggested the establishment of endowment funds and digitizing fee collection processes to help streamline operations and reduce financial strain.
Last year, KP’s largest university faced similar financial hardships, with no funds available to pay employees’ salaries. Ongoing protests by staff reportedly resulted in a loss of Rs 200 million, exacerbating the situation. The university administration continues to rely heavily on student fee payments to manage financial obligations.
