KOHAT – At least 26 of Khyber Pakhtunkhwa’s 34 public-sector universities are facing a mounting financial crisis with their cumulative deficit of Rs5.6 billion prompting the provincial government to approach the federal government for an emergency bailout of Rs18 billion, well-placed sources disclosed.
The worsening financial situation has raised serious concerns about the ability of these institutions to meet their routine expenditures, particularly salaries and pensions and sustain academic and administrative activities.
According to the sources, Secretary Higher Education Department (HED) Khyber Pakhtunkhwa Dr Amber Ali Khan has written an urgent letter to the chairman of the Higher Education Commission (HEC) outlining the financial difficulties facing public universities and seeking special financial assistance from the federal government.
According to the letter, the financial shortfall has placed university administrations under considerable pressure with several institutions struggling to fulfill their recurring financial obligations including payments to serving employees and retired faculty members.
The University of Peshawar, one of the province’s oldest and most prominent higher education institutions is reportedly facing the largest annual deficit exceeding Rs1.5 billion.
Other major universities affected by the financial crunch include the University of Engineering and Technology (UET) Peshawar, University of Agriculture Peshawar (UAP), Gomal University Dera Ismail Khan, University of Science and Technology (UST) Bannu, Abdul Wali Khan University (AWKU) Mardan, Bacha Khan University (BKU) Charsadda and Shaheed Benazir Bhutto Women University (SBBWU) Peshawar.
The list also includes Hazara University Mansehra, Khushal Khan Khattak University (KKKU) Karak, University of Haripur, University of Lakki Marwat and Abbottabad University of Science and Technology (AUST). Institutions and regional campuses in Swat, Chitral, Malakand, Buner and areas associated with FATA University are also reportedly facing financial difficulties.
The Higher Education Department has attributed the growing financial pressure to a steady decline in federal funding over the years, alongside rising salary bills, pension liabilities and operational costs.
According to the official correspondence, federal grants to the public universities have declined by a cumulative Rs18 billion over the past decade while the situation has further deteriorated over the last three years with the HEC’s annual grant witnessing a 6.3 per cent reduction, the sources said.
Although the Khyber Pakhtunkhwa government has increased its financial assistance to public universities to Rs11.85 billion, the amount has proved insufficient to meet their growing expenditure requirements.
The financial crunch is also beginning to affect students, with nearly 200,000 enrolled in the affected institutions facing the consequences of the funding shortfall. Several universities have reportedly raised tuition fees to bridge their budget deficits, adding to the financial burden on students and their families.
The rising cost of higher education has raised concerns about access to universities, particularly for students from low-income households, who may find it increasingly difficult to afford their education.
University administrations are meanwhile struggling to balance their budgets amid mounting financial obligations towards employees and pensioners. The growing share of expenditure on salaries and pensions has also left institutions with limited resources for research, academic development, infrastructure maintenance and other essential activities.
In its letter to the HEC, the provincial Higher Education Department has called for the immediate release of a special Rs18 billion grant, arguing that urgent financial assistance is necessary to stabilize the universities and ensure the continuation of academic activities.
The department has warned that any delay in providing the required funds could further aggravate the crisis and undermine the province’s higher education system, with potentially serious consequences for students and university employees.
Vice-chancellors and teachers’ organizations have also urged the federal government to intervene, calling for financial assistance to universities beyond political considerations. They have emphasized that public-sector universities play a vital role in providing educational opportunities to young people and that their financial stability is essential for the province’s academic future.
While the proposed Rs18 billion bailout could provide immediate relief to the financially troubled institutions, the crisis has also exposed the need for a more sustainable funding arrangement. Without a reliable mechanism to meet rising operational costs and long-term pension obligations, public universities may continue to face recurring budget shortfalls.
For Khyber Pakhtunkhwa’s higher education sector, the immediate priority remains securing financial support to keep universities running, protect employees’ livelihoods and ensure that nearly 200,000 students can continue their education without further financial disruption.
