The announcement by Punjab’s Minister for Education, Rana Sikandar Hayat, to raise the provincial higher education budget from PKR 17 billion to PKR 90 billion in the fiscal year 2025-26 marks a significant and much-needed step towards revitalizing the struggling higher education sector in Pakistan. This over 500% increase signals a strong commitment from the Punjab government and serves as a potential model for other provinces to follow. At a time when the country’s public universities are under severe financial strain, this initiative can act as a lifeline, provided it is part of a coordinated, well-planned national strategy that includes both federal and provincial efforts.
Pakistan currently has 269 Higher Education Commission (HEC)-recognized universities, with 141 sub-campuses scattered across the country. Of these institutions, 60% are public universities, accompanied by 90 public sub-campuses. Crucially, over 80% of these universities fall under the jurisdiction of provincial governments. Yet, budgetary allocations for higher education have remained stagnant, particularly at the federal level, making it nearly impossible for universities to keep up with inflation, salary hikes, and increasing operational costs.
The need for substantial financial intervention is now more urgent than ever. According to international standards, countries should allocate 4% of their GDP to education, with at least one-fourth of that amount dedicated to higher education. Unfortunately, Pakistan spends less than 2% of its GDP on the entire education sector, a shortfall that continues to cripple progress in academia, research, and innovation. Without increasing this investment, Pakistan will find it increasingly difficult to compete in the global knowledge economy.
The financial struggles of top-tier institutions such as Quaid-i-Azam University (QAU) Islamabad, ranked among the best in the country, underscore the severity of the situation. QAU is currently grappling with an annual deficit exceeding one billion rupees, making it unable to fully pay its staff salaries and pensions. The University of Balochistan, the largest university in that province, faces similar fiscal distress. These cases are symptomatic of a larger crisis that threatens the stability and future of public universities across the nation.
The Federation of All Pakistan Universities Academic Staff Associations (FAPUASA) has also sounded the alarm. In a recent statement, the organization condemned the federal government’s failure to revise its recurring grant for higher education, which has remained fixed at PKR 65 billion since 2018. During this same period, the number of public universities has risen, drastically increasing the financial requirements of the sector.
FAPUASA points out that inflation, expanding academic programs, rising student populations, and ballooning operational costs demand that funding levels be adjusted accordingly. The static nature of funding for higher education is not just disappointing. Universities are now taking out bank loans just to survive, and even then, many remain unable to meet essential financial obligations. This trend, if allowed to continue, may lead to the collapse of Pakistan’s public university system.
In light of these facts, FAPUASA has called upon Prime Minister Muhammad Shehbaz Sharif to urgently intervene and rescue the higher education sector. Just as he played a key role in preventing sovereign default, his leadership is now essential to prevent academic default. The organization urges the federal government to allocate at least PKR 200 billion as a recurring grant for public universities and recommends increasing the overall education budget to 4-5% of GDP, in line with global standards.
Furthermore, the disparities between provincial responses to the higher education crisis also need to be addressed. Following the 18th Constitutional Amendment, education has become a devolved subject. While Punjab and Sindh have taken commendable steps by establishing provincial higher education commissions and increasing budgetary support, Khyber Pakhtunkhwa and Balochistan have yet to follow. The absence of autonomous and well-funded provincial higher education bodies in these two provinces continues to hinder the development and financial sustainability of universities operating under their jurisdiction.
In addition to budgetary increases, it is imperative for both federal and provincial governments to introduce legislation enabling universities to explore alternative sources of income. This step will provide necessary legal cover. Academic institutions should be encouraged and facilitated to adopt business plans which include public-private partnerships, industry-academia collaboration, commercialization of research, and alumni funding models. This would not only provide financial relief but also integrate universities more effectively into national economic development.
Lastly, institutional reforms are essential. Universities need more autonomy in financial and administrative matters. Policymakers must also focus on creating transparent mechanisms for fund utilization and performance evaluation to ensure accountability and impact.
The proposed budgetary increase by Punjab is indeed a positive development and a beacon of hope for the higher education sector. However, isolated actions will not be enough. A unified, strategic, and well-funded national framework, supported by both federal and provincial governments, is necessary to rescue Pakistan’s universities from the brink of collapse. This is not merely an education issue; it is a question of national survival in an increasingly knowledge-driven world. A sustainable future for Pakistan depends on the investments made today in its intellectual capital. The time to act and rescue Pakistani universities.
