The federal government has approved a Rs. 2 billion bailout package for Pakistan’s top university, Quaid-e-Azam University (QAU). The university has been grappling with severe financial challenges.
The decision was made on Tuesday during a meeting of the Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb.
According to an official statement, the ECC gave the green light to the emergency grant, but with a key condition: QAU must work with the Higher Education Commission to develop and present a robust plan for long-term financial independence. The university is expected to outline clear steps to achieve financial stability and reduce its reliance on future government assistance.
Sources familiar with the meeting said ECC members acknowledged QAU’s urgent need for support, but also emphasized that the government cannot continually bail out universities. They urged QAU to implement measures that would ensure steady and sustainable funding.
The university’s financial troubles have already led to delays in salary payments and difficulties in maintaining laboratory supplies, threatening both academic and research activities. QAU’s Joint Coordination Council (JCC)—which represents faculty, staff, and the Academic Staff Association—recently appealed to the federal government for immediate financial intervention to keep the institution operational.
In a press release, QAU employees highlighted that the university has been in a deepening financial crisis since 2023, struggling to cover essential expenses such as research, payments to external examiners, medical costs, part-time teaching, and laboratory chemicals. The JCC pointed out that stagnant funding since 2018, coupled with rising inflation, has worsened the situation.
For the current fiscal year, QAU estimated it needed at least Rs. 2.5 billion, but had not received any funds, resulting in significant disruptions. The crisis has led to delayed salaries for June, unpaid wages for July, and months-long pension arrears for retired staff. The university’s pension fund is reportedly exhausted, and a proposed 25% budget increase from the HEC is still awaiting approval.
The JCC and the Officers and Employees Association have warned that if outstanding salaries and a portion of the pending budget are not released soon, employees may resort to protests. They called on the prime minister to prioritize education and ensure the timely release of funds to safeguard the university’s future.
QAU has been consistently ranked as the top university in Pakistan by Times Higher Education (THE). In the 2025 THE Asia Rankings, QAU secured the 137th position in Asia. Furthermore, the university is also recognized as Pakistan’s number one university in the QS World University Rankings.
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Isn’t it the duty of the government to support public universities. It collects taxes from every citizen as sales and withholding taxes. If every citizen pays one rupee in indirect taxes , that is rs 25 crores every day. What is the logic in increasing salaries by as much as six times of parliamentarians etc and buying fleets of cars from the tax payers money. What is the need for continuous construction of new roads ? This can only be a way to siphon off public money.