ISLAMABAD: The Higher Education Commission (HEC) has sought an increase in the recurring budget for universities from the existing Rs65 billion to Rs100 billion in the fiscal year 2026-27 to stabilise institutional finances, sustain core academic operations and strengthen the country’s national research framework.

According to documents available with Dawn, the HEC estimated that Rs138 billion would be required as a recurring grant for the upcoming fiscal year. However, the documents stated that in response to HEC’s estimate, the government communicated an Indicative Budgetary Ceiling (IBC) of Rs65 billion, which has remained unchanged since fiscal year 2017-18 despite significant growth in enrolment, expansion of universities, inflationary pressures and government-announced salary increases, resulting in an additional financial impact of Rs120 billion.

The HEC is now seeking at least Rs100 billion as a recurring grant for public sector universities in the financial year 2026-27.

“Public sector universities are consequently facing acute financial stress, particularly federally chartered institutions dependent on federal recurring support through HEC. Persistent resource constraints are affecting academic functions,” the documents stated.

“In parallel, higher education financing remains below regional benchmarks and requires calibrated enhancement in line with the National Fiscal Pact 2025, under which the federal and provincial governments committed to progressively increasing education spending as a share of GDP, thereby underscoring the need to sustain quality, access and equity in higher education.”

The stagnation of federal recurring grants since the financial year 2017-18 is further contributing to a widening structural financing gap in the higher education sector, the document stated.

It further read that around Rs10 billion was critically required for 24 federally chartered universities and HEC-funded national centres, which constitute key components of Pakistan’s national research framework and are entirely dependent on federal support for operational sustainability.

Explaining the proposed Rs35 billion enhancement, the HEC stated that Rs10 billion was required for federally chartered universities, Rs10 billion as support for financially stressed public sector universities, Rs10 billion for new research initiatives and Rs5 billion to cater to anticipated salary increases for Tenure Track System faculty in line with Islamabad High Court directions.

Sources in the HEC said Executive Director HEC Prof Dr Ziaul Haq recently wrote to the Ministry of Education and the Ministry of Finance seeking budget for the upcoming financial year.

Published in Dawn, May 11th, 2026