Financial Turmoil: Khyber Pakhtunkhwa Universities Struggle Amid Funding Crisis

Over 34 universities in Khyber Pakhtunkhwa, Pakistan, face a financial crisis with a PKR 15 billion shortfall. The imbalance between income and expenditure is exacerbated by rising salaries and frozen grants. Proposed solutions include endowment funds and fee digitization to improve efficiency and address funding gaps.

A financial crisis is gripping over 34 universities in Khyber Pakhtunkhwa, Pakistan, as these institutions report a collective loss of PKR 15 billion. This staggering shortfall has arisen due to the vast chasm between their income and expenses, with expenditures pegged at PKR 34 billion against an income of only PKR 18 billion, according to ARY News.

The situation is further compounded by rising salaries and pensions, which have significantly widened the fiscal gap. The Higher Education Commission's decision to freeze an annual grant of PKR 9 billion 40 million since 2018 has worsened the scenario, though a recent provincial government grant of PKR 1 billion 90 million in 2023-2024 provides some relief.

To meet pension and grant commitments, universities need PKR 13 billion, with an additional PKR 8 billion 75 million required for pension settlements, as highlighted by ARY News. Experts are urging the establishment of endowment funds and the digitization of fee processes to enhance financial efficiency and alleviate monetary challenges.

(With inputs from agencies.)