The University of Karachi’s finance director has warned that the institution could face bankruptcy and struggle to pay salaries following a decision to grant employees a housing allowance.
Acting Vice Chancellor Dr. Tufail Jokhio approved the allowance despite the Sindh government’s refusal to provide a grant for it, according to the report. Approval was also reportedly not obtained from the university’s syndicate or Finance and Planning Committee.
The university administration cited a monthly expense of Rs. 50 million and an annual cost of approximately Rs540 million. These figures do not align, leaving the exact projected expenditure unclear.
In a written objection, the finance director said the university lacked sufficient resources to bear the additional recurring expense. He warned that continuing on this course could leave the institution unable to meet its salary obligations.
Dr. Jokhio nevertheless issued a notification approving the allowance and subsequently departed on an overseas visit, the report said.
The Sindh government had already declined to fund the allowance. Former Vice Chancellor Dr. Khalid Iraqi had also refused to approve it because funds were unavailable.
The finance director’s warning concerns the potential impact of the additional expense; the report does not establish that the university has already become bankrupt.
Visit EduNation to find scholarships from around the world.
The post Karachi University Faces Risk of Bankruptcy appeared first on ProPakistani.