HEC Funding Criteria

for

Universities and Degree Awarding Institutes

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.

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…..

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

Funding Framework and Distribution (Proposed by HEC)

Based on grant received from Govt.

S.No. Institutions Percentage

1 Universities and DAIs 70%

2 Centres of Excellence, Area Study Centres, Pakistan Study Centres, Chairs, Institutes etc.

10%

3 Promotion of Research Activities 10%

4 HEC – Universities Programs 10%

Funding Framework and Distribution (Proposed by our University)

S.No. Institutions Percentage

1 Universities and DAIs 78%

2Centres of Excellence, Area Study Centres, Pakistan Study Centres, Chairs, Institutes etc.

10%

3 Promotion of Research Activities 6%

4 HEC – Universities Programs 6%

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.

Sub-distribution of Universities Grant

HEC proposes the following sub-distribution of recommended allocation:

• Base Grant 65%

• Need Grant 20%

• Performance Grant 15%

Sub-distribution of Universities Grant

University proposes the following sub-distribution of recommended allocation:

• Base Grant 80%

• Need Grant 10%

• Performance Grant 10%

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):

Level ASS BS&A E&M

Undergraduate 1 2 3

MS/M.Phil 1.5 3 4.5

PhD 3 6 9

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%

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%

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 policies 1%

• Evaluation by professional bodies 1%

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 policies 1%

• Evaluation by professional bodies 1%

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 student 14,490 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/-

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 faculty 54,330,000/2000 = 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/-

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.

University viewpoint

i). It was decided in the 1st Meeting of the Chancellors’ Committee held on 11th 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.

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.

Thank you!