KARACHI: The Federal Urdu University of Arts, Science & Technology (FUUAST) is reeling under a massive financial crisis, with a deficit of around Rs. 1 billion crippling its operations and resulting in the non-payment of salaries, Business Recorder has learned.
The university requires Rs. 1.47 billion in 2024-2025 to break even, but if the current shortfall remains unaddressed, the deficit could soar to Rs. 1.51 billion, sources inside the university told this scribe.
This financial instability has left faculty and staff without salaries for three months, while house rent allowances have been pending for eight months. The exodus of faculty members, some leaving the country or joining other institutions, is further jeopardizing the education of thousands of students.
A professor at the university, requesting anonymity, said that despite repeated appeals by Vice-Chancellor Dr. Zabita Khan Shinwari to the federal government and Higher Education Commission (HEC), no meaningful action has been taken.
The Sindh government provides no grants, and HEC funding has not increased, exacerbating the crisis. As the second-largest public university in Karachi, serving a predominantly Sindh-based student population, FUUAST’s survival depends on immediate financial intervention.
Without it, the university risks collapse, leaving thousands of students and staff in uncertainty, the professor added.
The lack of action puts the future of hundreds of faculty and staff, as well as thousands of students, at serious risk. The university is grappling with a severe financial shortfall, resulting in the non-payment of salaries for the past three months and house rent allowances for eight months.
This situation has forced faculty members to seek employment elsewhere, with some leaving the country or joining other institutions. The uncertainty caused by the financial instability is significantly impacting the education of thousands of students.
Despite repeated appeals from the university administration, including numerous letters from Vice-Chancellor Professor Dr. Zabita Khan Shinwari, neither the federal government nor the HEC has taken adequate notice of the crisis or increased grant allocations.
The university administration has repeatedly informed the Federal Ministry of Education, the HEC, HEC Sindh, and the Sindh government of the deteriorating situation but has received no positive response.
FUUAST, the second-largest public university in Karachi, serves a significant student population, with approximately 80% of its students coming from Sindh.
While the Sindh government provides no grants, the HEC has not increased its funding, and the federal government remains unresponsive.
The university’s financial records paint a stark picture. The previous financial year (2023-2024) shows a deficit of Rs. 0.93 billion, which has severely hampered the university’s ability to meet its financial obligations, including paying faculty and staff salaries. Projections for the current financial year (2024-2025) indicate a required grant of Rs. 1.47 billion just to break even.
“If the current deficit of Rs. 0.93 billion is not addressed, the projected deficit for 2024-2025 could balloon to Rs. 1.51 billion,” the source claimed.
Copyright Business Recorder, 2025
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