PAKISTAN’S public universities face a severe financial crisis due to rising costs and reduced government funding. The old model, relying on government grants, is no longer sustainable. It’s time to rethink university financing to ensure these institutions can keep playing a vital role in the country’s development. The financial crisis is complex, but several steps can help. One key strategy is to diversify income by increasing tuition fees, seeking alumni donations and commercializing research. This extra income can fund new programs, hire faculty, and improve facilities for students. Raising tuition fees often leads to debate, especially as it can burden students and families. However, with declining government funding, universities may have no choice. To ease the burden, a tiered fee structure based on income levels, along with more scholarships and financial aid, can help maintain education access while generating necessary revenue. At Government College University (GCU), Lahore, tuition fees for most programs increased during 2023-24. Initially, a 40% increase was planned, but this was spread over four years with an annual 10% rise. GCU also focused on supporting students from marginalized backgrounds through its Endowment Fund Trust, which provided nearly Rs. 50 million in scholarships to around 1,400 students in 2023-24.For the first time, scholarships were also extended to deserving students of evening programs and MS/MPhil students.
Alumni are a crucial yet often underutilized asset for many Pakistani universities. Beyond donations, they offer mentorship, internships, and job placements. For instance, GCU’s Old Ravians network significantly contributes to funding student scholarships, having raised a record Rs. 60 million for the GCU Endowment Fund last year. To harness this potential, public sector universities should implement robust alumni engagement programs similar to GCU’s, including annual events, networking opportunities, and recognition programs like the Lifetime Achievement Awards. This approach can generate substantial alumni contributions. Commercializing research through licensing, joint ventures, or spin-off companies presents a significant revenue opportunity. Globally, universities like Stanford have turned research into substantial revenue with spin-offs such as Google and Hewlett-Packard. At GCU, we are pursuing a major grant of five million Euros from the German Science Foundation for orthopedic implants—the largest grant ever for a public university in Pakistan. This grant supports the establishment of the National Centre of Excellence on Biomaterial Materials Science and Tissue Engineering at GCU, enhancing our research capabilities.
Under the new Policy of Revised Research Incentives by GCU’s Office of Research, Innovation, and Commercialisation (ORIC), income sharing formulas are now in place. Faculty members receive 80% of the share from consultancy projects, while the university retains 20%. For developmental projects and training services, faculty and their teams receive 60%, with the university and department each getting 20%. Additionally, a public-private partnership to establish a medical biotechnology lab at GCU and a British Academy-funded project for training Pakistani historians are also underway. Expanding student enrolment can also boost revenue. Universities can attract more students by offering new and innovative programs that cater to emerging fields and market demands. At GCU, we expanded student enrolment by launching new BS programs in high-demand, and in emerging fields, like Artificial Intelligence, Software Engineering, Data Sciences and Entrepreneurship. This initiative would draw an expanded body of students, including international students, thereby increasing tuition revenue.
We also established new departments, including Dr. Iqbal Law School, Global Studies Department, Department of Agriculture, Department of Public Policy, and the Syed Babar Ali Department of Education. Additionally, in the future, GCU should plan pursuing offering flexible learning options, such as online courses and part-time degrees, which can attract working professionals and non-traditional students, further expanding the university’s reach and financial base. GCU’s financial management efforts have consistently led to budget surpluses, with a record Rs. 2.907 billion budget approved for 2023-24. We also established three new endowment funds, including the GCU Self-Savings Endowment Fund, now valued at Rs. 1.552 billion. To ensure a more efficient and transparent budgetary process, we overhauled the annual budget allocation procedures by establishing the Budget Rationalisation Committee (BRC). This Committee, comprising academics and administrators, was responsible for determining the most efficient utilisation of funds from the allocated budgets —a responsibility that had previously rested solely with the Vice-Chancellor.
GCU also established and managed the GCU Pension Fund, which now stands at Rs. 2.5 billion. Our diligent efforts have ensured that our assets significantly exceed our pension liabilities—a fact recognised by both the Higher Education Commission (HEC) and the Punjab Higher Education Commission (PHEC) as a best practice in higher education institutions across Pakistan. Diversifying income streams and implementing austerity measures are crucial, but advocating for increased government support is equally important. This support could include direct funding and tax incentives for private donors, similar to the U.S. system that encourages charitable contributions through tax deductions. Additionally, establishing a national endowment for higher education could provide a stable funding source for scholarships, research, and infrastructure. These measures would ensure access to quality education for all students, regardless of their financial background. The future of Pakistan’s public sector universities is at a critical juncture. By taking decisive steps to address the financial challenges, we can ensure these institutions not only survive but thrive, continuing to provide high-quality education for generations to come. Diversifying funding sources, improving operational efficiency, and securing increased government support are essential strategies that will help secure the future of higher education in Pakistan. The time to act is now, for the benefit of not just the students, but the entire nation.
—The writer is a former Vice Chancellor of Government College University Lahore
