PESHAWAR – A deepening financial crisis has engulfed public sector higher education in Khyber Pakhtunkhwa,with 26 of the province’s 34 public universities reportedly operating in deficit,raising serious concerns about their financial sustainability and ability to meet salary,pension and operational expenditures.
According to figures compiled for this report,nearly 200,000 students are enrolled in KP’s public universities.Over the past decade,a substantial gap has emerged between universities’ financial requirements and available grants,prompting the Higher Education Department to reportedly seek around Rs18 billion from the federal government.
The University of Peshawar is facing a reported deficit of around Rs2.2 billion,while the University of Agriculture Peshawar requires approximately Rs800 million.Gomal University and Abdul Wali Khan University Mardan are also facing shortfalls estimated at around Rs700 million each.
Overall expenditure of public universities has reportedly increased from Rs40.8 billion to Rs54.8 billion,while salary and pension related expenditures have risen by more than 120 percent over five years.In contrast,the per student grant has declined from approximately Rs82,000 to Rs72,000.
The HEC grant has reportedly declined by 6.3 percent over three years,further increasing pressure on financially struggling institutions.Although the provincial government’s contribution has reached around Rs11.85 billion,university administrations maintain that the support remains insufficient against rapidly rising salary,pension and operational costs.
The growing deficits are also raising concerns about academic activities,research,infrastructure development and education quality,as universities may be forced to divert development funds towards unavoidable recurring expenditures.
Vice Chancellors and higher education experts have called for a comprehensive restructuring of the university financing mechanism,arguing that short term bailouts alone cannot resolve the problem.They have stressed the need for a sustainable funding formula,stronger financial management,improved revenue generation and predictable annual grants.
The situation also raises questions about the long term viability of expanding the number of public universities without ensuring corresponding financial resources.With 26 of 34 institutions reportedly running in deficit,the government faces the challenge of maintaining access to higher education while ensuring institutional sustainability.
The reported request for Rs18 billion in additional federal assistance highlights the scale of the crisis.If the funding gap remains unresolved,universities could face increasing difficulty in meeting salary,pension and operational obligations.
Educationists and university officials have called for an urgent joint strategy involving the KP government,Higher Education Department,Higher Education Commission and university administrations to establish a sustainable financial framework.
With nearly 200,000 students dependent on the province’s public universities,the financial health of these institutions has implications not only for employees and administrations but also for the future of higher education and human resource development across Khyber Pakhtunkhwa.
