Financial crisis deepens in Khyber Pakhtunkhwa universities

PESHAWAR, (UrduPoint / Pakistan Point News - 17th Mar, 2026) Public sector universities in Khyber Pakhtunkhwa are facing a severe financial crisis, with many institutions struggling to pay salaries and pensions to their employees.

Due to a shortage of financial resources, several universities have been forced to increase tuition fees in order to meet their operational expenses. This has added to the financial burden on students and their families.

A review of the financial situation reveals that on Tuesday, universities in Khyber Pakhtunkhwa receive significantly less government funding compared to other provinces. As a result, most institutions are facing budget deficits and adopting emergency measures to maintain financial stability.

According to budget figures for the fiscal year 2025–26, the government of Balochistan has allocated a total of Rs 8 billion for its seven public universities. Despite having fewer institutions, the per-university funding is considered relatively better.

In contrast, Khyber Pakhtunkhwa has 34 public universities but has allocated only Rs 10 billion in grants.

Experts say this amount is insufficient given the number of institutions, placing significant financial pressure on university administrations.

Meanwhile, the government of Punjab has allocated Rs 25 billion for its 34 public universities, while Sindh has set aside the highest budget of Rs 42.29 billion for 31 universities under its higher education system.

Education experts warn that the growing number of universities, rising inflation and increasing administrative costs are intensifying financial challenges in Khyber Pakhtunkhwa. They caution that without a substantial increase in government funding, universities may face prolonged financial instability, potentially affecting academic activities.

Experts have urged the provincial government to take immediate and effective measures to address the financial crisis, ensuring stability in the higher education system and reducing difficulties faced by students and faculty.