7/1/2011

1

FUNDING MECHANISM

FOR HIGHER

EDUCATION

DR. S. SOHAIL H. NAQVI

EXECUTIVE DIRECTOR

HIGHER EDUCATION COMMISSION

PAKISTAN

OUTLINE OF

PRESENTATION

National Financial Governance

Higher Education Commission

Higher Education Strategy

Recurrent Funding

Development Funding

University Autonomy

Conclusions

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2

NATIONAL

GOVERNANCE

President

Chancellor of All Federal Universities

Head of Government

Prime Minister

Chief Executive of the Government

Controlling Authority of Higher Education Commission

• Appoints Chairman & 10 HEC Members

Ministry of Finance

• Approval of Annual Budget, Financial Rules & Pay Structure

• Release of Funding on Quarterly / Monthly Basis

• Planning Commission

• Approval of Development Projects & Funding Portfolio

• Monitoring of Development Projects

FINANCIAL OUTLAY

SYSTEM

2 Main Budgets

Recurring (Operational) & Development

February April: Budget Negotiation

June: Budget

Salary Increase of Govt. Scale Employees

Quarterly Fund Provision

20% + 20% + 30% + 30% ??

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3

FINANCING HIGHER

EDUCATION

Where do we want to go ?

Need Goals & Targets and a Strategy to

get there

Prioritize Intervention

Focus on CAPACITY Development First

HIGHER EDUCATION

REFORMS IN PAKISTAN

• Reform Report (Dec. 2001)

• Key Recommendation: Create HECTask Force on Higher Education (Apr. 2001)

• Steering Committee on Higher Education

• Report & HEC Law (Sep. 2002)

Implementation of Recommendations

• Double financial allocation in 2 Years

• New pay structure for faculty members linking performance & reward

Decisions by the President (Aug 2002)

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HEC MISSION

“To Facilitate Institutions of

Higher Learning to serve as

an Engine of Socio-Economic

Development of Pakistan”

KEY CHALLENGES IN

HIGHER EDUCATION

Quality

• Standard of Education, Faculty & Research

Access

• Enrollment in higher education

Relevance

• Addressing the needs for Socio-Economic Development of Pakistan

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HIGHER EDUCATION

ECO-SYSTEM

Campus

Buildings, laboratories, student services, housing

Faculty

Appointment standards & processes, faculty development

Students

Counseling, student life, placement

Academics

Curriculum with relevance, program structure, program diversity, learning

innovation, qualification framework

Quality Assurance

Statistics, Accreditation System & Processes, International benchmarking

HIGHER EDUCATION

ECO-SYSTEM

Research

Grants, Publication, Innovation, Commercialization

Funding

Diversification, Financial Aid, Office of Development

Administration

HR, Financial Management, Procurement, Business Processes

Information

PERN, Digital Library, Video-Conferencing, Triple-Play Communication

Community & Industry Linkage

Relevance, Outreach, Economic Development

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STRATEGIC AIMS:

RESPONDING TO

CHALLENGES

11

Good Governance & Management

Quality Assurance: Standards, Assessment, Accreditation

Faculty

Development

Improving

Access &

Learning

Excellence in

Research

Relevance to

National

Priorities

Co

reS

up

po

rt

Infrastructure Development: Physical, Technology

UGC

1947-2002

HEC

2002-2011

Number of Universities

ranked in top 600

Universities of the World 0 5

New Institutions

Established 71 66

Enrollment 276,274 803,507

Number of PhD

Scholarships

Less than

1,500

More than

8,000

Total PhD Output 3321 3658

HEC IMPACT AT A

GLANCE

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HE ENROLLMENT

SN Description FY11 FY12 FY13

1 Public University 385,000 423,500 465,850 Growth Rate 1.1 1.1 1.1

2 Private University 144,719 162,085 181,535

Growth Rate 1.12 1.12 1.12

3 Distance Education 418,549 464,590 515,695 Growth Rate 1.11 1.11 1.11

4 Colleges 385,547 397,113 409,027 Growth Rate 1.03 1.03 1.03

5 Privately Enrolled 481,587 520,114 561,723 Growth Rate 1.08 1.08 1.08

6 Total Students 1,815,402 1,967,402 2,133,829

Population Aged 17-23 Years 23,183,510 23,677,319 24,181,646

Percentage Enrolled 7.83% 8.31% 8.82%

HEC MANDATE

Financing:

Submit to the Federal Govt. the financial requirement for recurring and development needs to public sector higher education institutions in Pakistan

Approve funds for the institutions out of bulk grants received from federal govt.

Promotion of Research & Development

Quality Assurance

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RECURRENT FUNDING

OF HIGHER EDUCATION

Funding of Universities / Institutes / Centers

(91%)

Univ. Funding Formula Based

HEC Controlled Funding

HEC Secretariat (1.6%)

Inter University Academic Activities (3.7%)

Promotion of Research (3.7%)

FORMULAE BASED

FUNDING OBJECTIVES:

Aligning resource allocation

with national needs

Changing historical highly

Skewed graduate/PhD output

(ignorant of national needs)

Creating enabling

environment for investment

Incentivize quality

enhancement

Increase PhD faculty

Implement Quality standards

Incentivize Enrollment

Increase

Strengthen needs based

scholarship (through FAOs)

Improved student facilitation

(new initiatives like

PERN,CMS)

Transparent fund allocation

Predictability

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ANNUAL RECURRING

FUNDING:

Need and Performance Basis

through Formulae:

Base Grant 65%

Need Grant 20%

Performance Grant 15%

BASE GRANT (65%)

Enrollment Based

Arts, Hum.

Social Sci.SCI & AGRI

Engineering

Medical/

Overall

Weightings 1 2 3

Level-wise Weightings

Undergraduate 1 2 3

MS / M Phil

Studies1.5 3 4.5

PhD Studies 3 6 9

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Factors% age

AllocationImpact of completed development

projects8%

Implementation of New Initiatives 4%

Regional / Location backwardness 5%

Income disparity compensation 3%

NEED GRANT (20%)

Factors %age

PhD Faculty 8%

Research Publication Output 2%

Competitive Research Grants

obtained2%

Quality Enhancement Cell Reports 1%

Compliance with Commission's

Policies1%

Evaluation by professional bodies

at national / international level1%

PERFORMANCE

GRANT (15%)

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RECURRING BUDGET OF PUBLIC

SECTOR INSTITUTIONS (RS. IN

BILLION)

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Federal Grant 2.947 3.486 5.230 6.996 10.493 14.332 12.536

Own Sources 3.140 3.627 4.515 5.446 7.542 8.036 10.557

TotalBudget

6.087 7.113 9.745 12.442 18.035 22.368 23.093

%age of Govt. Grant in Total Budget 48.4% 49.0% 53.7% 56.2% 58.2% 64.1% 54.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

-

5.000

10.000

15.000

20.000

25.000

HEC MANAGED

RECURRING GRANT

PROGRAMS

Promotion of Research

Research Grant Program

Travel Grants

Support for Journals

6 Month Foreign Scholarships for PhD Students

Inter University Academic Programs

Tenure Track System

Digital Library

Pakistan Education & Research Network

Quality Assurance

Learning Innovation

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DEVELOPMENT

FUNDING

HEC Operated Programs

Scholarships

Quality Assurance

Learning Innovation

Curriculum

PERN

HEC Initiated – University Run Programs

University IT Infrastructure

Student Service Center

Foreign Faculty Housing

Student Housing

University Development Programs

Kohat University of Science & Technology

Central Library Video Conferencing Room Cluster Room

Girls Hostel 250 Students Girls Hostel 200 Students Student Service Centre

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Date Palm Research Institute

Shah Abdul Latif University, Khairpur

Institute

Established

in 2004

EXPENDITURE ON

HIGHER EDUCATION

Indicator FY 06 FY 07 FY 08 FY 09 FY 10

Total HE Expenditure 21,743 28,632 27,926 32,183 32,750

Recurrenat Expenditure 10,543 14,332 12,536 15,766 21,500

Percentage of Total 48 50 45 49 66

Development Expenditure 10,891 14,409 15,390 16,417 11,250

Percentage of Total50 50 55 51 34

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EXPECTATIONS FROM THE

MODERN UNIVERSITY

Universities Building

Economies

Universities Building

Leadership

Universities Building

Communities

Socio-Economic Development of Country

RECURRING EXPENDITURE

PROJECTION

Description FY11 FY12 FY13 FY14 FY15 FY16

Total Estd. Budget

for Univ/DAIs (Bill 47.17 53.37 61.72 71.86 83.17 96.90

Core Programs &

HEC Sectt.4.09 5.25 6.44 7.55 8.48 9.68

Total Rec.

Expenditure51.26 58.62 68.16 79.41 91.64 106.58

Univ. Fee & Other

Income22.20 25.75 29.87 34.65 40.20 46.63

Govt. Rec. Grant

(Rs. In Billions)29.06 32.87 38.29 44.76 51.45 59.95

Income

Expenditure

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UNIVERSITY

AUTONOMY

There is more to autonomy than academic autonomy

Financial Autonomy is key

Need to Raise Funds

Establishes Community Ownership

Allows control of one’s destiny

Sources

Fees (The power of mulitiplication)

Alumni

Community

Research Commecialization

Pay Attention to Financial Rules

IMSCIENCES: A

SUCCESS STORY

Located on border of Tribal Area in Peshawar

Co Education with full freedom to women

Funded only 20% By the Government

Fastest Growing High Quality Business School

Charges Market Rate Fees

Scholarships for Poor Students

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INST. OF MANAGEMENT SCI.

PESHAWAR

CONCLUSION

Must know where you are going

Build your own capacity

Be Fair, Open & Transparent

Communicate (Market?) Success

Real – time Adaptation Required

Success is possible in EVERY Scenario