ISLAMABAD: As many as 2,800 students studying abroad on government-funded scholarships may find it difficult to meet their expense in the coming months if funds are not released for them.

Due to shortage of foreign exchange reserve, the government is releasing funds with utmost care, which is why it has so far not released the required funds for the second quarter in favour of the Higher Education Commission (HEC) .

Sources said a few days ago, Education Minister Rana Tanveer Hussain requested Finance Minister Ishaq Dar to expedite the process for the scholars.

Meanwhile, HEC Executive Director (ED) Dr Shaista Sohail, through a letter dated Dec 30, requested the finance secretary to release funds.

The letter available with Dawn stated: “HEC had submitted demand for release of 2nd quarter foreign exchange equivalent to Rs4,750 million. However, the same has been deferred vide Finance Division (External Finance Wing) letter dated 28-12-2022.”

The executive director, in her letter, said the HEC had been assigned the task of human resource development since its inception and presently more than 2,800 scholars were studying in foreign universities.

“The HEC remits scholarship funds periodically to foreign universities, partner agencies and Pakistan embassies/high commissions on account of tuition fee and stipend etc. The commission and government of Pakistan cannot renege from their responsibility to send stipend/fee urgently to the scholars as per approved PSDP schemes,” the letter said.

“Therefore, HEC would appreciate your kind cooperation to release foreign exchange budget equivalent to Rs4,750 million at the earliest. Earlier communication (dated Dec 23) in this regard is also attached herewith,” it added.

On Dec 14, an HEC deputy director, through a letter, stated that the commission had submitted the foreign exchange allocation request of Rs4.750 billion which had been critically examined considering the overall economic scenario of the country. However, “as per discussion, the revised essential and urgent FE requirement of the universities and HEC programmes and project are summarised below,” the letter said, seeking urgent release of Rs2,300 million. On Dec 23, the ED through the letter sought release of Rs4,750 million for the second quarter of financial year 2022-23.

However, on Dec 28, the Finance Ministry informed the HEC about the release of Rs2,300 million (approximately $10.2 million). “The release of the remaining amount would be considered later,” the letter of Finance Division dated Dec 28 stated.

Apparently, not satisfied with the response of the Finance Division, the ED wrote a new letter on Dec 30 demanding release of Rs4,750 million.

Sources said the government had never decided to stop funding, however, it was taking utmost care while releasing foreign exchange budget.

Quoting data released by the State Bank of Pakistan on Dec 23, the sources said the country had only $11.76 billion – $5.8bn with the SBP and the rest with private banks.

They said HEC Chairman Dr Mukhtar Ahmed was also in touch with the federal education and finance ministries and the HEC was hopeful that the matter would be resolved soon.

Speaking to Dawn, a senior HEC officer said currently there was no crisis-like situation for the Pakistani students but they could face such a situation in months to come if funds were not released.

Published in Dawn, January 3rd, 2023