HEC’s Increased Budget Allocation Fails to Alleviate Financial Crisis in Universities.

ISLAMABAD: In spite of the fact that the Finance Division has revised upward the Indicative Budget Ceilings (IBC) for the Higher Education Commission (HEC) to Rs. 65 billion from an initial allocation of Rs25 billion for fiscal year 2024-25 yet a majority of the universities, centres and institutes under its control have not been allocated and released sufficient budgets and funds for the fiscal 2024-25.

According to Higher Education Commission of Pakistan, annual budget allocations and grants have been decreasing for universities in general, and recognized centres and institutes in particular. Since 2018, Centres of Excellence have been requesting bail out packages, grant in aid, and supplementary grants to overcome financial pendency, but these requests have not been fulfilled.

Public sector universities, centres, and institutes have been enduring a financial emergency due to budget cuts over the past six years. The HEC’s decreased funding has not kept up with increased house rent ceilings, pay and pension hikes, and other allowances. Many institutions are facing a financial crisis, with some unable to fund house rent ceilings, salaries, and pensions.

The National Institute of Historical and Cultural Research, Centre of Excellence, Quaid-i-Azam University, Islamabad, has been experiencing financial difficulties since fiscal 2019-20. Staff and pensioners have not received house rent ceilings since July 2021, with the HEC failing to release necessary funds.

NIHCR pensioners have not received house rent ceilings since July 2021, nor have they been paid gratuity and leave encashment. NIHCR authorities blame HEC for not releasing funds to settle pensioners’ dues. At least five pensioners await payment of outstanding pensionary dues and house rent ceilings.

The NIHCR has not granted the 15 percent Adhoc Relief announced in Budget 2024-25 due to lack of funds from the HEC. Furthermore, the Special Dispensation for Civil Servants in the Federal Government for Employees in BPS-01 to BPS-16, effective from January 1, 2023, has not been implemented.

The Institute has not paid the 35 percent and 25 percent Adhoc Relief announced in Budget 2023-24 to its staff and officers, respectively. Similarly, the Institute has not paid the 25 percent and 15 percent Adhoc Relief announced in Budget 2024-25 to its staff and officers, nor has it paid medical allowance and reimbursement due to insufficient funds.

Despite the financial backlog, rumors suggest that some senior members have received advances for house building, motor cars, and motorcycles, while lower staff and retired employees await pending payments.

It is imperative for the HEC to thoroughly address the NIHCR’s financial issues and allocate necessary funds to clear outstanding dues.

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