The University of Karachi’s finance director has warned that the institution could face severe financial pressure and may struggle to pay employee salaries if it proceeds with a newly approved housing allowance.
According to the report, Acting Vice Chancellor Dr. Tufail Jokhio approved the allowance despite the Sindh government declining to provide funding for the additional expense. The approval was also reportedly issued without clearance from the university’s Syndicate or Finance and Planning Committee.
University Faces Additional Recurring Cost
The university administration has estimated the cost of the housing allowance at around Rs. 50 million per month, while its reported annual expenditure is approximately Rs. 540 million.
The two figures do not correspond exactly, leaving some uncertainty over the precise financial impact of the allowance.
In a written objection, the finance director said the university did not have sufficient resources to absorb the new recurring expenditure.
The official warned that continuing with the additional financial commitment could put pressure on the university’s ability to meet its existing obligations, including employee salaries.
Sindh Government Declines Funding
The Sindh government had already refused to provide a grant to finance the proposed housing allowance, according to the report.
Former Vice Chancellor Dr. Khalid Iraqi had also reportedly declined to approve the allowance, citing the university’s lack of funds.
Despite the concerns raised by the finance department, Dr. Jokhio later issued a notification approving the allowance.
The report said the acting vice chancellor subsequently left the country on an overseas visit.
Financial Concerns Raised Over Decision
The finance director’s objection centres on whether the university can sustain the additional recurring expense without a dedicated government grant or another source of funding.
The warning has raised questions about the financial implications of introducing the allowance at a time when the university is already facing resource constraints.
However, the available report does not establish that the University of Karachi is currently bankrupt or has already become unable to pay salaries.
The concern raised by the finance director relates to the potential consequences of taking on the additional financial commitment without adequate resources.
The university’s financial position and the future of the housing allowance are likely to depend on whether funding is secured and whether the relevant statutory bodies review or approve the decision.
