Many universities in Pakistan are suffering from financial crisis which in some cases is threatening their very survival. The reasons for this dismal situation are numerous and are attributable mismanagement and lack of vision to search for their remedies.
The gravity of the situation is quite evident as most of the universities are not able to pay salaries and pensions. The financial crises have led many talented and competent faculty to seek jobs abroad causing a huge brain drain, which, undoubtedly, is a huge national loss.
Interestingly, the Vice Chancellors/Rectors are generally held responsible for this plight besetting the universities, which, in my opinion, is unjustified because it’s not him or her who solely manages finances.
The lion’s share of funding for the universities is provided by the Higher Education Commission (HEC) which is already complaining the dearth of funds and huge cuts have been imposed which have crippled the funding of universities. The source seems drying up, can aggravate the difficulties even more. Secondly, there are university governing bodies which through participative forums manage the finances of the university and devise policies and strategies in this regard.
However, the question is not to find the scapegoat but to contemplate on how these financial crises can be surmounted to pull universities out of this predicament. In this regard, I wish to offer some suggestions which, in my view, can mitigate the prevailing situation and normalize the functioning of the universities as well as prevent similar situations in the future.
The first thing universities should do is to get into the habit of devising long term strategies and shun from adopting interim, ad hoc and short- lived quick fixes because the problem tackled in this manner are bound to bounce back.
In short, temporary and provisional escape is but to worsen the situation to the point of no return. In fact, financial crises are chronic and have taken roots, making long term strategies even more compelling. While I am suggesting this strategy, I am not being imaginative but have implemented this approach in real with positive outcomes when I was associated with two public sector universities as the Vice Chancellor.
Trust me, it yielded encouraging results. Another productive step that can be taken with a view to overcoming the financial crisis is to establish a joint fund at each university, with contributions from both the government and university through matching grants. This is a useful means for generating funds. Again, this is one of the tested strategies we used to positive effect.
Another effective and tested approach is the creation of Endowment Funds, providing a valuable means of augmenting financial resources. Drawing from my firsthand experience of creating endowment funds of different categories in the universities I was associated with, the cumulative sum within these funds surpassed billions of rupees within couple of years, consistently increasing each year. These funds were safeguarded by official policies enacted by executive bodies and pertinent offices, guaranteeing the universities’ enduring financial stability. Consequently, the secured funds can be strategically invested in various developmental projects to yield more goods for the university and its stakeholders.
Still another promising solution to meet financial requirements at different universities is where the government could explore innovative approaches involving banks and other financial organizations to come to rescue universities in this critical moment.
A subsidized loan scheme for universities, supported by government guarantees, can be a viable option. Under this partnership scheme, banks may be asked to provide financial support for certain academic or research programs through a partnerships scheme, similar to housing schemes. Government-subsidized loans generated in this way could be used to alleviate financial crises in universities.
In addition to that, development (i.e., developmental projects) in any university should not be funded through direct allocation of a certain amount for certain years, but through Development Endowment Fund (DEF), to be established by the university.
The HEC and governments should allocate annual funds to DEF not to individual projects and Key Performance Indicators should be developed to ensure their growth at each university. The syndicate of the university shall make decisions about projects from this fund ensuring the academic freedom of the university to grow.
The university which utilizes these funds in an effective manner may be allocated more funds from HEC and other organizations. The profits accrued from the DEF can, in turn, be pumped to support new projects. This concept may transform a university into a self-supporting enterprise. The universities should be bound to contribute a percentage of their recurring funds and other income (especially from R&D Activities) to this fund.
These proposed measures may look an uphill task and sound a burden, yet these remedies are essential ensure that the prevalent financial crises do not jeopardize the very existence of public sector universities in Pakistan.
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