Universities to Struggle With Salaries and Pensions in the Next Fiscal Year

On Wednesday, educators raised alarms over what they described as insufficient budgetary support for the higher education sector, arguing that the funds allocated fall short of addressing its growing financial demands.

For the fiscal year 2025–26, the federal government has allocated Rs66.4 billion in recurring funds, covering non-development expenses such as salaries and pensions, despite the Higher Education Commission (HEC) having requested Rs84.6 billion. According to sources within the HEC, the commission had formally proposed this higher amount to meet essential operational needs.

In addition to the shortfall in recurring funds, the government has also slashed the development budget for higher education. While Rs65 billion had been earmarked for development projects in the previous fiscal year, the allocation for 2025–26 has been reduced to Rs39.4 billion.

Universities, which have long been pressing for increased operational funding, are now warning of a looming financial crisis. Institutions like Quaid-i-Azam University (QAU) are reportedly struggling to disburse salaries and pensions. Muhammad Jadoon Khan, Information Secretary of the All Pakistan Universities Academic Staff Association (FAPUASA), highlighted that several universities, especially in Khyber Pakhtunkhwa and Balochistan, are facing severe financial constraints. He revealed that QAU had not yet disbursed its ceiling grant for the current month and cautioned that without additional funds, the situation could escalate into a full-blown crisis.

Speaking to Dawn, Jadoon reiterated that the HEC had proposed nearly Rs85 billion for recurring needs, but the government had approved only Rs66.4 billion.

In a joint statement, FAPUASA’s leadership — President Prof. Mazhar Iqbal, Vice President Prof. Akhtiar Ali Ghumro, and General Secretary Fareed Achakzai — voiced strong opposition to the Federal Budget 2025–26. They criticized the government for freezing the HEC’s recurring grant, which has seen minimal increases since 2018, when it stood at Rs 65 billion.

The association also condemned the government’s continued neglect of faculty employed under the Tenure Track System (TTS), whose salaries have not been revised since 2021.

“Since 2018, the number of universities and student enrollments has surged, alongside rising inflation, utility costs, and operational expenditures,” the statement read. “Yet the government has failed to provide the additional resources needed to keep universities running smoothly, placing enormous strain on higher education institutions nationwide.”

FAPUASA urged the government to reassess the Federal Budget 2025–26 and incorporate necessary changes into the Finance Bill. The statement warned that failure to address these funding gaps would severely damage Pakistan’s higher education system and hinder the nation’s socio-economic progress.