Higher Education Sector in Pakistan Faces Budget Constraints

Strategic Insights -

Teachers and higher education officials have expressed concerns over the inadequate budget allocation for the higher education sector, which they claim is insufficient to meet the rapidly increasing financial needs of the sector. The federal government has earmarked Rs66.4 billion for the upcoming fiscal year, which is Rs18.2 billion less than the demand of Rs84.6 billion put up by the Higher Education Commission (HEC). The government has also imposed a cut on development budget, allocating Rs39.4 billion for financial year 2025-26 compared to Rs65 billion in the previous year. Universities, including top-ranked Quaid-i-Azam University, are struggling to pay salaries and pensions, with many facing a crisis-like situation due to the inadequate budget allocation.

Key Takeaways:

  • The Higher Education Commission (HEC) had submitted a budget proposal of Rs84.6 billion for the upcoming fiscal year, but the government allocated only Rs66.4 billion.
  • The government has imposed a cut on development budget, allocating Rs39.4 billion for financial year 2025-26 compared to Rs65 billion in the previous year.
  • Many universities, including Quaid-i-Azam University, are struggling to pay salaries and pensions, and some are facing a crisis-like situation due to the inadequate budget allocation.
  • The All Pakistan Universities Academic Staff Association (FAPUASA) has strongly rejected the Federal Budget 2025-26 and demanded an increase in recurring budget for the higher education sector.
  • The government has been neglecting the Tenure Track System (TTS) faculty salaries, which have not been revised since 2021.
  • Since 2018, the number of universities and student enrollments has increased significantly, while inflation, utility charges, and operational expenditures have continued to rise sharply.

Statistics:

  • Rs66.4 billion allocated by the government for the recurrent budget of the higher education sector in the upcoming fiscal year.
  • Rs84.6 billion demanded by the Higher Education Commission (HEC) for the upcoming fiscal year.
  • Rs39.4 billion allocated for development projects in the upcoming fiscal year, down from Rs65 billion in the previous year.
  • Rs65 billion allocated for development projects in the previous year.
  • 18.2 billion less than the demand of Rs84.6 billion allocated by the government.

Sources:

  • Dawn newspaper
  • Information Secretary of All Pakistan Universities Academic Staff Association (FAPUASA), Muhammad Jadoon Khan
  • Joint statement issued by FAPUASA's President Prof Mazhar Iqbal, Vice President Prof Akhtiar Ali Ghumro, and General Secretary Fareed Achakzai.