By: Syed Zeeshan Kakakhel
The Higher Education Department has revealed the financial difficulties faced by universities in Khyber Pakhtunkhwa in its latest report. According to the findings, 34 universities in the province are grappling with serious financial challenges, leading to an increase in student fees and administrative issues.
The report highlights that, despite a rise in university revenue from 54% to 67% over the past four years, the financial deficit persists. In a bid to address this deficit, student fees have been raised significantly. In the fiscal year 2021-22, universities generated Rs. 12.53 billion in student fees, which surged to Rs. 20.49 billion by 2024-25. Yet, the overall financial shortfall has escalated dramatically, doubling from Rs. 2.5 billion to Rs. 5 billion.
Notably, 80% of university funding comes from student fees, underscoring the unsustainable financial dependence on this source. Further compounding the issue, the report points out a decrease in annual financial grants from the Higher Education Commission (HEC), which has dropped from 37% to 23%.
In response to these challenges, the provincial government has taken steps to enhance financial support to universities, increasing grants from 7.7% to 9.7%. Despite this, a staggering 59% of university budgets are consumed by salaries, allowances, and other incentives, exacerbating financial hardships.
The report raises alarm over the increasing deficit, which has surged to Rs. 5 billion, alongside taxes, bills, and other dues totalling. 1.6 billion. It categorises the financial health of universities in Khyber Pakhtunkhwa, stating that 38% are deemed high-risk, 10% medium-risk, and 50% low-risk.
Experts emphasise the urgent need for solutions to these financial challenges to ensure the continuation of quality higher education services in the province.
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