Karachi University Faces Risk of Bankruptcy
The University of Karachi’s finance director has warned that the institution could face bankruptcy and struggle to pay salaries following … Read More The post Karachi University Faces Risk of Bankruptcy appeared first on ProPakistani .
According to the university's finance director, Karachi University could face bankruptcy and potential failure to pay salaries due to a recent decision granting employees a housing allowance. The allowance was approved by Acting Vice Chancellor Dr. Tufail Jokhio, despite the Sindh government refusing to provide a grant for it. The university administration claims the monthly expense will be Rs.
50 million, with an annual cost of approximately Rs. 540 million. However, the discrepancy between these figures leaves the exact projected expenditure unclear. The finance director expressed concern, stating that the university lacks sufficient resources to bear the additional recurring expense, warning that continuing on this course could result in the institution being unable to meet its salary obligations.
Despite the finance director's warning, Dr. Jokhio issued a notification approving the allowance and later departed on an overseas visit. The Sindh government had already declined to fund the allowance, and former Vice Chancellor Dr. Khalid Iraqi had also refused to approve it due to unavailable funds. The finance director's warning focuses on the potential impact of the additional expense, but the report does not establish that the university has already become bankrupt.
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