The Federal Government has decided to allocate Rs. 25 Billion in recurring grants to the Federal Higher Education Commission for the fiscal year 2024-2025, which is a staggering 62 % less as compared to last year’s allocation. HEC, however, had demanded at least Rs. 126 billion to support 160 public sector universities across Pakistan. The development grant is also proposed to be slashed to just Rs. 21 Billion, a 64 % decline as compared to Rs. 59 billion last year. The PML (N)’s manifesto promises to provide 4 % and 0.5 % of the GDP to Education and Higher Education respectively, but sadly it seems the promises are not meant to be fulfilled. This proposed funding for the Higher Education Sector speaks volumes about the spending priorities of the incumbent government.
The massive reduction in recurring as well as development grants simply means the federally chartered universities would neither have sufficient resources to meet their operational expenditures (paying salaries and pension, ensuring the provision of utilities, funding extra-curricular activities, or maintaining their premises) nor have any funding available for new projects to meet their development needs (infrastructure, equipment, research projects etc.). It is pertinent to mention here that according to this decision by the federal government, the provincial universities are to be funded entirely by their respective provincial governments and the federal government would not provide any funding to them. If this decision is implemented in the upcoming budget without ensuring adequate funding for the provincial universities from the respective provinces, this would be a recipe for disaster.
A similar proposal by the SIFC forum was earlier opposed by the higher education fraternity and it was then decided that federal and provincial governments would share the funding on a 50:50 basis. However, now this unilateral decision would have long-lasting ramifications if not addressed timely. We have already seen the universities of Khyber Pakhtunkhwa and Balochistan struggling in the recent past, and now this can spread across Pakistan.
According to the UNDP’s 2023/2024 report, Pakistan already ranks in the ‘low’ human development category with a Human Development Index (HDI) value of 0.540 and a global ranking of 164 out of 193 countries. Now, if the federal government is on the move to even make the already struggling universities cash-strapped completely, provincial governments must come to their rescue or it is a matter of days, if not months, we will see the universities getting closed and students protesting on roads because the state does not have enough money to support universities and fund higher education (God forbid). In the aftermath of the 18th Amendment, education stands as a devolved subject, but the federation cannot simply withdraw its funding without ensuring that the responsibility is well taken by its provinces because it is the future of thousands of students in the country which is at stake this time.
The Public Sector Universities on the other hand also need to make their house in order. The increasing pension liabilities, high staff-to-faculty ratio, and lack of alternate revenue generation streams are some of the major factors contributing to the financial unsustainability of the universities. It is high time the public sector universities develop a viable financial model capitalizing on their areas of expertise and fund their recurrent expenditures themselves. However, this doesn’t mean an exorbitant increase in tuition fees because it would negatively affect the enrolment ratio at the universities. Reduction in operational expenses, industry as well as alumni engagement for the provision of scholarships on a need and merit basis, endowment funds to support development needs, and contributory pensions are some of the measures universities need to take immediately to steer through the difficult times.
All the stakeholders involved need to understand that Education is the deciding factor between hope and despair. Not only, an educated person can support his family and provide them with a reasonable lifestyle but can also play an imperative part in the country’s development. On the other hand, the uneducated youth bulge can be a challenge for national development. This is why, the federal government is requested to review and reconsider its decision of massive reduction in the HEC’s budget as well as unilateral withdrawal of funding for the provincial universities, the universities are suggested to move towards a sustainable economic model, and provincial governments to take responsibility and fund universities in their respective territories. Lastly, we as a society also need to support education as our obligation because actions speak much louder than words.
Muhammad Muneeb ur Rehman
The writer holds an MPA degree from Tsinghua University, China as a MOFCOM scholar and is a Gold Medallist in Public Policy from Riphah International University, Islamabad.
