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HEC warns prolonged funding freeze is pushing universities toward financial crisis

MM News Staff by MM News Staff
November 23, 2025
Reading Time: 1 min read
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The Higher Education Commission (HEC) has warned that the years-long stagnation in federal funding is driving universities toward a severe financial crisis, which may lead to increased tuition fees and reduced educational opportunities for underprivileged students.

In a written response submitted to the National Assembly, the Ministry of Education stated that no increase has been made in the annual budget of universities since 2018–19, despite significant growth in student enrollment as well as faculty and staff numbers.

HEC said that this prolonged funding freeze is not only undermining efforts to strengthen the financial autonomy of universities but may also force institutions to raise tuition fees, esulting in declining admissions and creating further barriers for poor and marginalized students.

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The Commission informed that a 35% reduction in development grants—from Rs 61.1 billion in the fiscal year 2024–25 to Rs 39.5 billion in 2025–26—has also diminished scholarship opportunities for deserving students.

Federal Minister for Education Dr. Khalid Maqbool Siddiqui presented this response to questions raised by MNA Anjum Aqeel.

The Minister stated that Pakistan is currently offering 27 international scholarship programs in collaboration with global universities, providing higher education opportunities from bachelor’s to post-doctoral levels.

Economists say the government is prioritizing visible infrastructure projects such as roads over essential sectors like health and education—a trend that could harm the country in the long run.

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