26 Public Sector Universities in Khyber Pakhtunkhwa Face Severe Financial Crisis; Rs18 Billion Special Grant Sought from Federal Government.

PESHAWAR: The Higher Education Department of Khyber Pakhtunkhwa has sought a special grant of Rs18 billion from the federal government to address the growing financial crisis faced by public sector universities across the province. In this regard, a formal letter has been sent to the Chairman of the Higher Education Commission (HEC), highlighting that 26 out of the province's 34 public sector universities are facing severe financial deficits, putting the educational future and academic standards of approximately 200,000 students at risk. According to the department, the combined expenditures of universities have increased from Rs40.8 billion to Rs54.8 billion over the past three years, while federal grants have declined by 6.3 per cent during the same period. Since 2018-19, salary and pension expenditures have increased by more than 135 per cent, while pension-related expenses alone have risen by over 80 per cent. Although the provincial government has increased its financial contribution to Rs11.85 billion, the amount remains insufficient due to substantial existing pension liabilities. The historic University of Peshawar is reportedly facing a financial deficit of Rs2.2 billion, along with long-term pension liabilities amounting to Rs53.6 billion. The University of Agriculture Peshawar, Gomal University and Abdul Wali Khan University Mardan are also struggling with significant financial shortfalls. To generate additional revenue, universities have increased student fees by up to 28 per cent; however, fee collections currently cover only 59 to 64 per cent of their total expenditures. Secretary of the Higher Education Department, Abidullah Kakar, has stated that Khyber Pakhtunkhwa's frontline role in the war against terrorism has placed extraordinary pressure on provincial resources, making sustainable federal financial assistance essential for strengthening universities and protecting the educational future of young people. The department has proposed that a significant portion of the requested Rs18 billion grant be invested in permanent assets and the establishment of endowment funds to create sustainable sources of income for public sector universities.