Stakeholders in the education sector have raised concerns over the outlay for the Higher Education Commission (HEC) in the recently announced federal budget for fiscal year (FY) 2025-26. According to reports, teachers have outlined how Rs66.4 billion is not enough to cover the monetary requirements of institutions in the higher education space.

 

The HEC had requested a budget of Rs84.6 billion; however, the government was unable to meet this demand. This has resulted in a gap of approximately 21.5 percent between the initially requested amount and the actual allocation. It merits a mention that the allocated amount for the HEC is to cover all “non-development” expenses, including the salaries and pensions for staff. 

 

Reports reveal that the government has actually slashed development budgets, causing the outlay for development initiatives in the educational sector to fall to just Rs39.4 billion for FY 2025-26. This is a sharp drop in comparison to the development outlay for FY 2024-25, which stood at a respectable Rs65 billion. 

 

Reports indicate that the low amount earmarked for the HEC comes at a time when top-tier higher educational institutes such as Quaid-i-Azam University (QAU) are facing difficulties in covering financial liabilities. These liabilities include the salaries and pensions of staff.

 

According to reports, the financial situation of universities is especially grave in Balochistan and Khyber Pakhtunkhwa.  The Information Secretary of the Federation of Pakistan Universities Academic Staff Association (FAPUASA) has reportedly highlighted that universities could face immense difficulties if budgets are not increased. 

 

A joint statement released by the President, Vice President and General Secretary of FAPUASA witnessed all members collectively rejecting the federal budget for the current fiscal year. Reports reveal that the members of FAPUASA have also highlighted their concerns regarding the freezing of the HEC recurring grant. 

 

The joint statement underlined the lack of additional funds for the upkeep of universities since 2018, citing the rampant increases in utility bills, inflation rates and operational expenses as reasons for a larger budget. Moreover, the statement highlighted the need for funds as enrollment levels across educational institutions over the past seven years have increased.

 

The statement called upon Islamabad to review the federal budget and consider increasing the allocation to the HEC in the Finance Bill. However, it is unclear whether the government will boost the HEC’s budget as lawmakers are yet to comment on the developments.