LAHORE: The Punjab University Academic Staff Association (PUASA) has called for an urgent revision of federal and provincialhighereducationbudgetstoensure the smooth functioning of universities across Punjab.

A meeting of the PUASA Executive Council was held on Tuesday at the committee room of the university club, presided over by President Prof Dr Amjad Abbas Khan Magsi.

The council expressed deep concern over the ongoing funding crisis faced by universities, as well as the proposed withdrawal of the tax rebate for university teachers. A resolution was unanimously passed, demanding that the Punjab government immediatelyrevise the allocation of recurring grants for public sector universities in the province.

Despite rising inflation and growing institutional needs, the federal government has maintained thehigher education recurring grant at Rs65 billion since 2018.

According to IMF data, the Wholesale Price Index shows a 98 per cent increase in prices between 2017-18 and 2024-25.

Adjusted for inflation, the university sector should have received at least Rs130 billion this year. In real terms, the recurring grant has lost half its value, leaving universities severely underfunded.

The Punjab government`s allocations also fall short. While the Sindh government has allocated Rs42 billion in recurring grants for its 32 public universities, Punjab has allocated only Rs18 billion for its 51 public universities.

The disparity is further illustrated by the fiagship institutions of both provinces: Punjab University has been allocated just Rs780 million, whereas the University of Karachi has received Rs3.5 billion. This is despite Punjab University having over 54,000 students, compared to around 45,000 at Karachi University, highlighting a significant imbalance in funding.

PUASA said that recurring grants are essential to meet the research, development, and operational costs of universities. These grants do not include development funding.

The current allocations, the council said, are making it increasingly difficult for institutions tofunction effectively.

Dr Magsi said improved funding was criti-cal not only for sustainability but also for maintaining international academic standing. He said Punjab University has been ranked among the top 5.2 per cent of universities worldwide, according to the independent Center for World University Rankings.

Sustaining and improving this position, he added, requires strategic investment in faculty, research infrastructure, and student support systems.

The association also voiced concern over the federal government`s proposal to withdraw the existing 25 per cent income tax exemption for teachers and researchers, warning that such a move would discourage research, innovation, and knowledge production key pillars of national progress.

In addition, PUASA criticised the Punjab government`s failure to provide the disparity reduction allowance to university and government employees mirroring a similar omission by the federal government. This, they said, has intensified financial hardship for academic staff already grappling with soaring living costs.

PUASA urged both federal and provincial governments to revise their higher education allocations without delay, continue tax rebates for university teachers, grant the Disparity Reduction Allowance in Punjab, and adopt a long-term vision aligned with the country`s developmental needs.