Financial Crisis in Khyber Pakhtunkhwa Universities
In Khyber Pakhtunkhwa, Pakistan, more than 34 universities are experiencing a severe financial crisis, with a combined loss of 15 billion Pakistani Rupees (PKR). The universities’ expenditures total PKR 34 billion, while their income is only PKR 18 billion. This financial gap is worsened by increased salaries and pensions.
The Higher Education Commission has not increased its annual grant of PKR 9 billion 40 million since 2018. However, the provincial government has provided a grant of PKR 1 billion 90 million for 2023-2024. To meet pension and grant obligations, universities need PKR 13 billion, plus an additional PKR 8 billion 75 million for pensions.
Experts suggest creating endowment funds and digitizing processes to improve efficiency. Last year, the largest university in the region faced similar issues, unable to pay salaries or continue projects due to a lack of funds. The Vice Chancellor noted that employee protests led to a loss of PKR 200 million, and the university’s financial health heavily relied on student fees.
Doubts Revealed
Khyber Pakhtunkhwa -: Khyber Pakhtunkhwa is a province in Pakistan. It’s like a big area or state in the country, similar to how Maharashtra or Tamil Nadu are states in India.
PKR -: PKR stands for Pakistani Rupee, which is the currency used in Pakistan. It’s like how we use Indian Rupees (INR) in India.
Higher Education Commission -: The Higher Education Commission is an organization in Pakistan that helps universities and colleges with money and resources. It’s similar to the University Grants Commission (UGC) in India.
Endowment funds -: Endowment funds are special savings that universities keep to earn money over time. It’s like a piggy bank that grows bigger, helping schools pay for things they need.
Digitization -: Digitization means using computers and the internet to do things more efficiently. For universities, it can help with managing student records, classes, and finances better.