Three federally chartered universities in Pakistan—Quaid-i-Azam University (QAU), International Islamic University Islamabad (IIUI), and the Federal Urdu University of Science and Technology—are currently facing a severe financial crisis, struggling to pay salaries and pensions due to insufficient funding from the Higher Education Commission (HEC).
According to sources, both the HEC and the Ministry of Federal Education and Professional Training have urged the government to approve an additional grant of Rs2.5 billion to help alleviate the financial pressure on these institutions. Secretary Education Mohyuddin Ahmad Wani confirmed that a request for Rs2.5 billion had been submitted to support QAU, Urdu University, and IIUI, expressing hope that the matter will be resolved soon.
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The broader higher education sector in Pakistan is also underfunded, with a reported shortfall of Rs60 billion. HEC Chairman Dr. Mukhtar Ahmed highlighted that while the HEC required Rs125 billion for the current fiscal year, only Rs65 billion was allocated, which has further strained the sector. He noted that funding per student has dropped significantly—from Rs67,528 in 2018-19 to Rs50,956 in 2023-24—complicating the management of operational costs.
The National Assembly committee has called for the education budget to be increased to at least 4% of the GDP in the 2025-26 fiscal budget. An HEC official pointed out that, following the 18th Constitutional Amendment, provincial governments became responsible for funding provincially chartered universities. However, with the exception of Sindh, most provinces have not provided adequate financial support, thereby increasing the pressure on the HEC and leaving federally chartered institutions even more vulnerable.
The official also warned that universities in Khyber Pakhtunkhwa and Balochistan are among the worst affected due to stagnant HEC funding and rising costs for salaries, pensions, and utilities. Both federal and provincial governments are being urged to allocate sufficient funds in the next budget to ensure the continued progress of the higher education sector.
