Global lenders have urged Pakistan to cease funding public universities, prompting the government to develop a plan that would transform these institutions into self-sustaining corporate entities. This shift aims to reallocate public funds towards compulsory and elementary education, following the recommendations of international lending agencies.
The Ministry of Finance, in collaboration with the Higher Education Commission, Planning Commission, Ministry of National Health, and other stakeholders, is working on this plan based on an initial study conducted by a leading global lender, according to sources cited by Dawn on Tuesday. The report indicates that 80% of public universities — spanning both general and medical education — risk defaulting within three to four years, with many currently reliant on federal budget allocations.
Lenders are advocating for public universities to increase their financial self-reliance by raising educational quality, adjusting student fees, leveraging campus lands for revenue generation, and streamlining staff, especially within administrative and accounting departments.
The proposed reforms also suggest eliminating federal and provincial subsidies, transitioning these universities into corporate structures led by CEOs and chartered accountants on fixed-term, high-salary contracts without pension or long-term financial commitments, in place of the current vice-chancellor-led system with significant pension obligations.
