Three KP universities go bankrupt due to financial crisis
The three major universities of Khyber Pakhtunkhwa (KP) have gone bankrupt and do not have funds to pay faculty and staff.
University of Peshawar, Khyber Pakhtunkhwa Agricultural University and Gomal University Dera Ismail Khan are universities that are facing financial crisis in the education sector.
Due to lack of funds, the Higher Education Commission (HEC) has not issued any grant for the variations. The federal government has also not released any supplementary funds for them.
Last month, these universities took loans from local banks to pay their employees. Now, with Eid around the corner, the administration of these variations is about how to pay salaries and pensions.
A reliable source said, “Universities have no means to pay back loans taken from various quarters.”
Variations requested a bailout to the government and HEC, but the request was turned down.
Vice Chancellor of the University of Agriculture, Dr. Jahan Bakht said that even after taking loans, they were only able to give 50 percent salary to the employees.
As a result, unpaid employees began protesting, forcing the university administration to take further loans from HEC.
Speaking about the reason behind this financial bottleneck, Drs. Jahan Bakht said that under the previous governments, hiring unnecessarily is the main reason for the financial crisis.
We have more than 500 surplus employees in various cadres. Unnecessary allowances and double payments to employees is a serious issue and needs to be fixed to settle things.
He said that many professors were retiring this year, and each professor received Rs. 10 million at the time of his retirement under commutation, gratuity, and other payments.
He urged the federal government to step up and increase the financial grant of phasing out.
“It will not work if the university is not given financial assistance as soon as possible,” he said.