Why Universities in Khyber Pakhtunkhwa Are Facing a Financial Crisis
More than 34 universities in Khyber Pakhtunkhwa (KP) are grappling with a severe financial crisis, with combined losses exceeding Rs 15 billion, local media reported.
According to the details, this crisis in higher educations institutes in the province is primarily driven by a substantial disparity between income and expenditure.
Leading universities in the Khyber Pakhtunkhwa are facing annual expenses of Rs 34 billion, while generating only Rs 18 billion in revenue, it was learnt.
A significant portion of these expenses stems from rising salary and pension costs. The situation has been worsened by the freezing of the Higher Education Commission’s (HEC) annual grant of Rs 9.4 billion since 2018.
Meanwhile, the provincial government provided a grant of Rs 1.9 billion for the 2023-24 fiscal year, falling far short of the required funds. Universities need Rs 13 billion for pensions and grants, and an additional Rs 8.75 billion for pension obligations.
Experts have suggested establishing endowment funds and digitizing fee collection and administrative processes to improve financial management.
Last year, KP’s largest university also faced a similar financial crisis, where it struggled to pay employee salaries and fund projects due to a shortfall of Rs 300 million. Protests by university staff further worsened the situation, resulting in a total loss of Rs 350 million.
