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Public sector varsities grappling with financial uncertainty

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Public sector universities in Pakistan are grappling with financial uncertainty as VCs and other stakeholders voice their alarm over the lack of an increase in the recurring budget for higher education in the budget for the new fiscal year.

During a recent virtual meeting, which was also attended by the HEC chairman, the university heads shared their concerns regarding the financial challenges posed by a surge in student enrolment and the inflation impact. Of particular concern is the unchanging recurring budget which, according to them, left universities struggling to manage salary and pension increases.

Numerous public sector universities and higher education institutions (HEIs) across Pakistan have been making headlines due to their struggles in meeting salary obligations to their faculty and staff.

The University of Balochistan (UoB), Quetta which was established in 1970, experienced frequent closures due to employee protests over non-payment. This issue persisted throughout the latter part of last year and continued until April. The financial difficulties faced by the oldest institution of higher education in Balochistan highlighted the financial challenges.

Talking to reporters, UoB VC Dr Shafiq-ur-Rehman said that while the HEC’s recurring budget remained stagnant over the years, the number of new universities kept increasing in the country. “This means while the recurring budget remains stagnant, the share of universities in the budget gets lower”, he said and added it was only after intervention of the government of Balochistan, the UoB was able to pay salaries to its employees recently this year.

Dr Shafiq emphasised that despite the significant inflation rates, the university continued to provide subsidised education and transportation services to its students. He highlighted the university’s commitment to ensuring accessible education for students, even in challenging economic circumstances. Additionally, in the aftermath of the 2022 flood, the university had to comply with the government’s decision to waive off fees for affected students, further demonstrating its dedication to supporting the community in times of crisis.

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