The inevitable has happened. After the announcement of the federal budget, it has become abundantly clear that the days of financial woes of higher education sector are not over. The Higher Education Commission (HEC) in particular and the overall sector in general have been facing the wrath of the regime for more than two years. It may be noted that the sector will be managed by the provinces in the near future as a consequence of the 18th Constitutional Amendment Bill.
But this does not absolve the federal government of the responsibility of fulfilling the legitimate needs of the universities during this crucial transition. Several experts on higher education, vice chancellors of public universities and functionaries of the HEC have warned that if the government would not release the much-needed grants — even towards the essential recurring funds — the balance sheets of these vital seats of learning could be in the red.
There are many pressing priorities that the public sector universities have to follow. Maintaining the routines in higher education including hiring competent faculty, admitting new batches, servicing spaces and educational hardware, planning for new facilities and initiating modest attempts towards expansion and up gradation are some of the core tasks that every performing institution of higher learning has to undertake. It is common knowledge that the state universities conduct these important assignments in a bid to invest in the youth of the country to transform it into a productive resource.
With a meagre budget allocation of Rs15.5 billion to be spread over more than five dozen public universities, it is not hard to imagine the mismatch between need of funds and supply. Neighbouring India, in a contrasting approach, allocated US $11.5 billion or 1.03 per cent of the GDP during the previous financial year. The same positive signals continue to flash during this year also in that country.
The uncertainty in financial allocations to the universities is a routine affair. It requires some positive approach and creative options.
Creation of endowments and trust funds is an effective mechanism. Most of the well known universities in the world have institutionalised this tool for acquiring free hand in extending teaching, conducting research and other ventures of public importance. For instance, the University of California at Berkeley has an endowment worth 2.6 billion dollars — more than the total higher education budget of our country.
The launch and development of endowments can be facilitated as a step by step move for public sector universities. Older institutions with spread out alumni can be chosen for experimenting the first phase. There are at least half a dozen universities in Pakistan that have an existence originating from British colonial times. Numerous types of endowments can be considered after an intensive interface with prospective philanthropists and donors. General support funds, endowments targeting human resource development, sector specific trusts and gender focused scholarships are only a small outline of prospective categories.
Certain prerequisites need to be fulfilled in this respect. The respective provincial legislatures and governors shall have to be approached through the right channels to promulgate necessary bills and statutory instruments to steer this process in a smooth manner after the administrative spade work is done. Generation, administration and release of the funds shall require utmost transparency and fund management skills to attract progressive donors. There is enormous expertise available in the corporate and even public sectors which can be approached for advice. The universities shall be able to generate enough revenue in times to come if they become partially self-sufficient through returns received from investments. However, they will require continuous effort as endowments may take years to mature.
The universities imparting professional education have the unique advantage of connecting with corporate houses. There are many corporations and groups that benefit from the universities in various ways. Induction of young professionals, conduct of basic events and even provision of technical advice are few examples. A more meaningful relationship with the corporate sector can be envisaged by drawing common agendas. Exploration can take place in multifarious directions. A mutually beneficial need analysis to examine the requirements could be the first step. Under association of institutions such chambers of commerce, collaborative links can be evolved. Assorted consultancy assignments, product development and extending innovative ideas to corporate sector are some of the possibilities.
Universities possess the most technically and professionally endowed human resources. The doctorate qualified faculty can be best utilised when involved in research. There are a host of research grants available from different types of organisations including international financial institutions, international agencies, philanthropic research endowments, bi-lateral organisations, NGOs and cooperative trust funds. Those faculty members who are capable of team building nationally and internationally as well as capable to respond to grant requirements normally succeed in winning competitive prizes. Publications in peer reviewed journals also raise the chances as evaluators find it appropriate to justify their choices. University managements must encourage the teachers to become research active and enterprising.
Most of the universities possess a well-developed sequence of facilities which could be effectively used for revenue generation. Auditorium complexes, exhibition halls, video conferencing infrastructure and sophisticated IT hardware are few examples. The universities may consider using them for income generating purposes by renting out to outside users. If strong management and intensive marketing is done, some of these components can become very useful channels of adding value to university finances.
The writer is professor and chairman, Department of Architecture and Planning, NED University, Karachi.