The recent announcement by Punjab's Minister for Education, Rana Sikandar Hayat, to increase the provincial higher education budget from PKR 17 billion to PKR 90 billion in the fiscal year 2025–26 is a significant step towards rejuvenating the struggling higher education sector in Pakistan. This substantial increase of over 500% demonstrates a strong commitment from the Punjab government and could serve as a model for other provinces to emulate. With public universities in the country facing severe financial challenges, this initiative has the potential to provide much-needed support, as long as it is part of a well-coordinated national strategy involving both federal and provincial efforts.

Pakistan is currently home to 269 Higher Education Commission (HEC)-recognized universities, with 141 sub-campuses spread across the nation. Of these institutions, 60% are public universities, along with 90 public sub-campuses. However, budget allocations for higher education have remained stagnant, especially at the federal level, making it difficult for universities to cope with inflation, salary increases, and rising operational expenses.

The urgency for significant financial intervention has never been more apparent. According to international standards, countries should allocate 4% of their GDP to education, with a quarter of that amount dedicated to higher education. Unfortunately, Pakistan currently spends less than 2% of its GDP on the entire education sector, hindering progress in academia, research, and innovation. Without a boost in this investment, Pakistan risks falling behind in the global knowledge economy.

• The financial struggles faced by top-tier institutions like Quaid-i-Azam University (QAU) Islamabad and the University of Balochistan highlight the severity of the situation. QAU is grappling with an annual deficit exceeding one billion rupees, leading to challenges in paying staff salaries and pensions. The University of Balochistan, the largest university in the province, is also experiencing financial distress.

FAPUASA has raised concerns over the federal government's failure to revise its recurring grant for higher education, which has remained fixed at PKR 65 billion since 2018. As the number of public universities has increased during this period, the financial demands of the sector have risen significantly.

The organization emphasizes that inflation, expanding academic programs, growing student populations, and escalating operational costs necessitate adjustments in funding levels. The static nature of higher education funding is not only disappointing but also unsustainable, with universities resorting to bank loans to survive.

FAPUASA has urged Prime Minister Muhammad Shehbaz Sharif to intervene and rescue the higher education sector by allocating at least PKR 200 billion as a recurring grant for public universities. The organization also recommends increasing the overall education budget to 4–5% of GDP to align with global standards.

In addition to budget increments, federal and provincial governments should enable universities to explore alternative revenue sources through legislation. This would allow academic institutions to engage in public-private partnerships, industry-academia collaborations, research commercialization, and alumni funding models, providing financial relief and enhancing their contribution to national economic development.

Furthermore, institutional reforms are crucial, including granting universities more autonomy in financial and administrative matters. Transparent mechanisms for fund utilization and performance evaluation must be established to ensure accountability and effectiveness.

While Punjab's proposed budget increase is a positive step, a comprehensive national framework supported by both federal and provincial governments is essential to rescue Pakistan's universities from potential collapse. Investing in intellectual capital today is crucial for Pakistan's sustainable future in an increasingly knowledge-driven world.

Source: nation.com.pk