2. HEC Funding Criteria for Universities and Degree Awarding Institutes

3. Section 10(g) of HEC Ordinance 2002 Submit to the Federal Government the recurring and development budgets for public sector institutions and allocate funds to public sector institutions out of bulk financial provision received from the Government and other resources on performance and need basis.

4. Section 10(h) of HEC Ordinance 2002 Review and examine the financial requirements of public sector institutions, approve and provide funds to these institutions on the basis of annual recurring needs as well as for development projects and research based on specific proposals and performance…..

5. Funding Objectives of HEC Funds are provided to HEIs to: Support teaching and learning Improve quality of teaching and research Support research and innovation Prioritize relevance to national needs Enhance equitable access for students Strengthening governance and management

6. Funding Framework and Distribution (Proposed by HEC) Based on grant received from Govt. S.No.InstitutionsPercentage 1Universities and DAIs 70% 2Centres of Excellence, Area Study Centres, Pakistan Study Centres, Chairs, Institutes etc. 10% 3Promotion of Research Activities 10% 4HEC – Universities Programs 10%

7. Funding Framework and Distribution (Proposed by our University) S.No.InstitutionsPercentage 1Universities and DAIs 78% 2 Centres of Excellence, Area Study Centres, Pakistan Study Centres, Chairs, Institutes etc. 10% 3Promotion of Research Activities 6% 4HEC – Universities Programs 6%

8. Rationale More allocation will help universities function more efficiently. It will enable universities to allocate more funds for research pursuits and upgradation of labs and libraries. The Chancellors’ Committee in its first meeting held on 11 th May, 2004 under the chairmanship of the President of Pakistan with four Governors of provinces and President of AJK decided ‘to enhance the universities allocation by 50% annually till achievement of 1% of GNP’. Better allocation will help HEC, in a way, to implement this decision to some extent.

9. Sub-distribution of Universities Grant HEC proposes the following sub- distribution of recommended allocation: Base Grant 65% Need Grant 20% Performance Grant 15%

10. Sub-distribution of Universities Grant University proposes the following sub- distribution of recommended allocation: Base Grant 80% Need Grant 10% Performance Grant 10%

11. Grounds of Allocation of Base Grant Student enrolment with following weightage: Arts/Social Sciences (ASS) 1 Basic Sciences & Agriculture (BS&A) 2 Engineering & Medical (E&M) 3 Further division level-wise (proposed from next FY): LevelASSBS&AE&M Undergraduate123 MS/M.Phil1.534.5 PhD369

12. Grounds for Need Grant HEC proposes following factors for Need Grant (four): Impact of completed projects 8% Implementation of new initiatives 4% Regional location/area backwardness 5% Income disparity compensation 3%

13. Grounds for Need Grant University proposes following factors for Need Grant (six): Impact of completed projects 2% Implementation of new initiatives 1% Regional location/area backwardness 2% Income disparity compensation 1% Budget Shortfall/Deficit 2% Additional Impact due to revision of pay scales, pension etc. 2%

14. Grounds for Performance Grant HEC proposes following %age for factors relating to Performance Grant: PhD Faculty 8% Research publications 2% Competitive research grant obtained 2% Quality Enhancement Cell 1% Compliance with Commission’s policies1% Evaluation by professional bodies 1%

15. Grounds for Performance Grant University proposes following %age for factors relating to Performance Grant: PhD Faculty 3% Research publications 2% Competitive research grant obtained 2% Quality Enhancement Cell 1% Compliance with Commission’s policies1% Evaluation by professional bodies 1%

16. Method of calculation of Base Grant Grant allocated by Finance Division to HEC for FY2010-11 Rs. 23,220.000 million (say 23.200 billion) Universities share @ 78%23220x78/100 = 18,112 million Base Grant @ 80%18112x80/100 = 14,490 million Student enrolment (all universities) – presumed A&SC = 300,000 (factor 1 i.e. 300,000x1) BS&A = 200,000 (factor 2 i.e. 100,000x2) E&M = 180,000 (factor 3 i.e. 60,000x3) Total: 680,000 Grant per student14,490 m/680,000 = Rs. 21,308/- University having student population of 1000 will get a grant of: 21,308 x 1000 = 21,308,000/- University having student population of 3500 will get: 21,308 x 3500 = 74,578,000/-

17. Method of calculation of performance grant Grant allocated by Finance Division to HEC for FY2010-11 Rs. 23,220.000 million Universities share @ 78%23220x78/100 = 18,112 million Performance Grant @ 10%18112x10/100 = 1,811 million Grant on PhD faculty basis @ 3% of 10% 1811 m x3 /100 = 54.330 million PhD Faculty (all universities) – presumed 2000 Grant per PhD faculty54,330,000/2000 = Rs. 27,165 University having PhD faculty of 100 will get a grant of: 27,165 x 100 = Rs. 2,716,500/- University having PhD faculty of 250 will get: 27,165 x 250 = Rs. 6,791,250/-

18. Practice in Finance Division, GOP Finance Division, GOP often allocates funds to HEC on their own formula. The grant is increased by certain percentage over the preceding year’s grant, with utter disregard to student enrolment, PhD faculty, performance and other parameters. They do not take into consideration the recommendations of HEC for funding the universities. Thus, HEC exercise for funding the universities on data and performance basis often fizzles out.

19. University viewpoint i). It was decided in the 1 st Meeting of the Chancellors’ Committee held on 11 th May, 2004 under the chairmanship of the President of Pakistan and attended by four Governors of Provinces and AJK President “to enhance the universities allocation by 50% annually till achievement of 1% of GNP”. We would emphasize on HEC to implement this decision. ii). HEC should prevail upon Finance Division to honour its recommendations and allocate funds to HEC as calculated on students enrolment and performance basis, as provided in the HEC Ordinance.

20. Funding Opportunities at HEC HEC has other programs for funding, such as; Organizing Seminars and Conferences Travel Grant to Teachers/Scholars Grant for spare parts and maintenance of equipment Faculty research projects Upgradation of University Libraries and Laboratories Eligibility criteria and application procedure is available at HEC website: www.hec.gov.pk The faculty members may take benefit of these opportunities.

21. Thank you!