ISLAMABAD, June 30: Even on the last day of 2011-12 the Higher Education Commission (HEC) could not get over Rs9 billion, receivable under its Rs48 billion budget, landing it in dire financial straits.

The commission has already stopped payments to 10,000 students studying in the country and abroad on different scholarships and salaries to more than 2,000 contract employees.

Now the burden will be carried over to 2012-13 for which the allocation for the HEC has already been made 18 per cent less than what it had demanded (Rs58bn), due to which the cash-starved HEC will not be able to complete 150 ongoing projects, Dawn has learnt.

According to sources, Minister for Professional and Technical Training Sheikh Waqas Akram had a meeting with Prime Minister Raja Pervez Ashraf on Friday and informed him about the issues of the HEC. He also informed him that Rs11 billion (Rs6.5bn development and 4.5bn recurring budget) was yet to be paid.

PM instructed the ministry of finance to pay Rs6bn immediately but it released only Rs2bn for recurring budget, the sources said.

An officer of the university, requesting not to be quoted, said that the non-release of funds had exacerbated the problems of the students and the employees.

“The provincial governments have also refused to extend financial support to the universities till 2014, the year when the higher education sector will be devolved. On the other hand, the federal government seems uninterested in solving the issue,” he said.

“The non-release of development budget will not only affect the higher studies of the students, but development projects, salaries of project employees and payment to contractors,” he said.

Another officer on condition of anonymity said that the budget announced for 2012-13 is Rs48.5bn (Rs15.8bn development and Rs32.7bn recurring) which is 0.5 per cent more that 2011-12 budget (Rs15.8bn development and Rs31.5 recurring). However, demand for the year 2012-13 was (Rs58bn) because of devaluation of money and the dependence of the universities of far flung on the HEC, he said.

“Funds for the first quarter (first three months of financial years) are released in August or some time in September because finance department takes time to streamline its own issues and problems. So it means payments to the students and the employees will not be made for another couple of months,” he said.

Vice President of All Pakistan Academic Staff Association, Zahid Majeed while talking to Dawn said the Rs2bn is sufficient for payment of two months salaries. Government should have released Rs11bn.

“We have already announced that if issues will not be resolved. We will start protest in first phase and in second phase will go on complete strike,” he said.