KARACHI, July 4 A Rs7 billion cut in the Higher Education Commission budget for the current fiscal year may not only restrain nine public sector varsities and a degree-awarding institute of Sindh from launching any new academic and development project, but also bring the development works under way at these institutions to an abrupt halt, it emerged on Saturday.

While education has become a provincial subject with the approval of the 18th Amendment to the Constitution, the public sector universities still depend on HEC grants for their development, academic and research needs.

Well-placed sources in public sector universities told Dawn that the higher education institutions, which were already underfunded, would not even be able to meet the impact of 50 per cent increase in the basic pay of their employees and 15 to 20 per cent raise in pension and medical allowances announced by the government.

When Sindh Governor Dr Ishratul Ibad, who is also the chancellor of all public sector varsities in the province, was recently apprised of the issue, he asked the vice-chancellors to immediately furnish the details of minimum required funds so that he could take up the matter with the provincial and federal governments, the sources said.

They added that the vice-chancellors of all public sector universities at a meeting, presided over by Karachi University Vice-Chancellor Dr Pirzada Qasim, subsequently prepared a comprehensive document.

The document carries the details of budget deficits and funds required in each slot to meet the impact of 50 per cent increase in basic salaries of employees, 15-20pc increase in pension, grant of medical allowance at 15pc of the basic pay to employees in BPS-17 and above, and a 100 per cent increase in medical allowance for employees working in grades from BPS-1 to -16.

The higher education institutions are the University of Karachi, the NED University of Engineering and Technology, Sindh University, Jamshoro, Shah Abdul Latif University, Khairpur, Liaquat University Medical Health Sciences (LUMHS), Mehran University of Engineering and Technology (MUET), Jamshoro, Quaid-i-Awam University of Engineering, Science and Technology (QUEST), Benazirabad, Sindh Agricultural University (SAU), Tando Jam, Dow University of Health Sciences (DUHS) and the Institute of Business Administration (IBA), Sukkur.

According to the document, the total additional financial impact of the increase in salaries, pension and medical allowance with effect from July 1, 2010 in respect of the University of Karachi will be Rs298.114 million, MUET Rs149.557m, QUEST Rs89.600m, Sindh University Rs373.506m, Shah Abdul Latif University Rs99.500m, LUMHS Rs197.572m, SAU Rs177.515m, DUHS Rs262m and IBA Sukkur Rs82.190m.

According to information received from the NED University of Engineering and Technology, it faced Rs22-million deficit in the fiscal year 2009-10 and the funds shortage would increase to Rs73 million in the current financial year.

Speaking to Dawn, KU Vice-Chancellor Dr Pirzada Qasim said the 50 per cent hike in salaries and 15-20 per cent increase in pension of government employees had not only made it impossible for the universities to undertake any new development or research project — unless financed by the HEC/federal government — but also severely hampered the current pace of ongoing development works.

He said the academic projects launched by Karachi University in line with the HEC policy of enhancing capacity building in anticipation that infrastructure would be developed over the next couple of years would suffer the most. In fact, he said, the government allocated only Rs981.271 million grant to the university against its demand for Rs1,969 million for the current year.

He added that the KU had demanded Rs1350.34 million the previous fiscal year, but the government granted Rs981.271m only then.

Having a deficit of Rs1181.309 million in its budget for the fiscal year 2010-11, the KU was striving hard to increase its funds through resource generation and management, but it would take a couple of years to consolidate the programmes, which had already been launched or were in the pipeline, Dr Pirzada added.

He said the university would not be able to initiate any academic, research and development projects, while it would also face serious financial problems in purchasing chemicals and equipment for its laboratories.

He made it clear that research and teaching programmes were on the university's priority, but they would be subject to availability of funds.—Azizullah Sharif