ISLAMABAD: In a major development, struggling Quaid-i-Azam University (QAU) on Tuesday received Rs2 billion bailout package from the federal government.

Economic Coordination Committee (ECC) headed by Finance Minister Muhammad Aurangzeb, besides other agenda items, approved the package for QAU.

“The ECC approved in principle a bailout grant of Rs2 billion for Quaid-i-Azam University, contingent upon the preparation and presentation of a comprehensive financial self-sustainability plan.

“The university, in collaboration with the Higher Education Commission, is required to submit a clear roadmap outlining the strategy to achieve long-term financial stability and reduce dependency on future bailout packages,” read an official statement.

A source said that participants of the ECC were of the view that QAU is struggling therefore, this bailout package should be approved for it. However, they said that government does not have unlimited resources to meet requirements of universities every now and then. The participants stated that QAU should take steps for sustainable financial flows.

In addition to facing difficulties in paying salaries to employees on time, QAU, one of the country’s top-ranked institutions, is struggling to maintain chemical supplies for its laboratories due to a shortage of funds.

Recently, Joint Coordination Council (JCC), representing both teaching and non-teaching staff and Academic Staff Association had requested the federal government for a bailout package.

JCC last week had issued a fervent appeal to the federal government, calling for immediate intervention and the release of emergency funds to keep the university running,“ said a press release issued by QAU employees.

The Academic Staff Association (ASA) of the university had also issued a statement claiming that the university had been facing difficulties in arranging chemical supplies for the laboratories. It said since 2023, the QAU had been facing a severe financial crisis and struggling to fund essential activities such as research, external examiner payments, medical expenses, part-time teaching, extra workload, and laboratory chemical supplies.

The JCC had revealed that QAU’s financial woes have deepened due to stagnant funding since 2018, despite rising inflation.

For the fiscal year 2024, the university urgently required at least Rs2.5 billion, but no disbursement had been made so far,affecting academic and research activities severely.

The statement had stated that several alarming indicators of the crisis were highlighted.

“June 2024 salaries were delayed, July salaries remain unpaid, and many retired employees have not received their pensions for months. The university’s pension fund has been completely depleted, and support staff salaries are also in jeopardy. Moreover, a proposed 25pc budget increase from the HEC remains pending approval,” it added.

Calling education a national priority, the coordination council urged the prime minister to take notice and ensure that the necessary funds are released without delay.

The council and the Officers and Employees Association cautioned that if the salaries for June and July and 40pc of the pending budget are not released, employees will launch protests.

Earlier, ASA also issued a statement on QAU’s financial crisis. “Since 2023, QAU has faced a severe financial crisis, struggling to fund essential activities such as research, external examiner payments, medical expenses, part-time teaching, extra workload, and laboratory chemical supplies,” read a statement issued by the ASA.

Published in Dawn, August 6th, 2025