25.08.2013 Setting a high aim
Universities are not in a good shape financially and call for a serious look into how the situation can be reversed
By Dr Noman Ahmed
As reported in the third week of July 2013, the Higher Education Commission (HEC) has informed the University of Karachi that the university will not get the required funds this year to cover the salary bill of its employees.
Similar response is given to other universities, many of which are facing grave financial problems due to multiple reasons. Increase in the number of students and teaching departments, rise in the number of employees, overall inflation and price hikes in goods and services consumed by universities are some of the reasons.
The previous government had advised the universities to raise their own finances. The staff and management of universities replied that such a move will take some time. Development projects, programmes of faculty development and research initiatives were drastically affected.
In the present budget, allocation for higher education has been only marginally raised. The momentum of growth and progress in the expansion of research work certainly received a big shock. It was particularly harmful for such departments that deal with research, engineering, medicine and applied knowledge, etc. The staff unions are still protesting to restore the old format of university support as existed in the Musharraf regime.
The prevailing situation demands a dispassionate review of the situation and what is expected to come. The federal government, which has spent only few weeks in the power corridors, is reported to have paid circular debt of the power sector. It has also made headway in respect to the affairs of Pakistan International Airlines and Pakistan Railways, two important but financially ailing state bodies.
The government is reported to be planning initiatives to bail out crucial sectors and enterprises. It will be appropriate if a bailout package for public sector universities and degree awarding institutions may also be considered.
This move will have multiple impacts. These institutions extend affordable education and prospects of educational qualifications to the youth even from most disadvantaged backgrounds.
As a country, which has a majority of its population belonging to the young people, increase in this investment is desirable. Two, the relative neglect experienced during the past five years by the universities has contributed to the accumulation of financial liabilities. If this stalemate persists, the quality of education imparted to our future generations shall be affected.
Three, the opportunity of subsidised higher education is perhaps the only worthwhile support from the state to the deserving but needy youth of the society to socially develop and position them to compete for a career.
If the universities are incapable of educating the poor youth, the social frictions in the society will continue to haunt us. And four, with the passage of 18th Constitutional Amendment, provinces shall have the ultimate ownership of higher education sector.
The federal government will do well to scale up the financial health of universities to set a healthy benchmark for centre-province cooperation. If deemed appropriate, a special parliamentary committee can be constituted to look into this matter and submit recommendations to the federal cabinet.
Universities will have to raise their competence level for getting more financial resources on their own. A tried and tested recipe for financial health of universities is the creation of endowments and trust funds.
Almost all the top universities in the world have resorted to this approach. Harvard University had an endowment worth more than US $ 32 billion in 2012. This amount is about twice the foreign exchange reserves of our country. The National University of Singapore has also established sizable endowment finances.
There are at least half a dozen universities in Pakistan that have an existence originating from the British India. Multiple types of endowments can be considered after an intensive interface with prospective philanthropists and donors.
Certain prerequisites need to be fulfilled in this respect. The respective provincial legislatures and governors will 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, management and release of funds will 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.
Universities imparting technical education have the unique advantage of connecting with corporate magnets. There are many corporations and groups that benefit from the universities in various ways. Induction of young professionals, conduct of basic events and provision of technical advice are a few examples. A more meaningful relationship with the corporate sector can be envisaged by drawing common agendas.
A two-way need analysis to examine the needs and requirements could be the first step. After consulting with institutions, such as the Federation of Pakistan Chamber of Commerce and Industry, (FPCCI), mechanisms can be evolved to develop mutually beneficial collaborations. Assorted consultancy assignments, product development and extending innovative ideas to corporate sector are some of the possibilities.
Every university possesses well-developed space and software, which could be rented out for revenue generation. Auditorium complexes, exhibition halls, video conferencing infrastructure and sophisticated IT hardware are a few examples.
The HEC can convene a series of meetings to gather ideas and feedback for evolving a worthwhile strategy in this direction.