Staff Report
ISLAMABAD: As many as 2,800 students studying abroad on government-funded scholarships may find it challenging to meet their expenses in the coming months due to a shortage of foreign exchange reserves.
The government of Pakistan is releasing funds with the utmost care, which is why it has yet to release the required funds for the second quarter in favour of the Higher Education Commission (HEC). As per the sources, Education Minister Rana Tanveer Hussain requested Finance Minister Ishaq Dar a few days ago to increase the process for the scholars.
Meanwhile, HEC Executive Director (ED) Dr. Shaista Sohail, on December 30, requested the finance secretary through a letter to release funds. It was stated in the letter that Higher Education Commission had submitted a demand for Rs 4,750 million release of 2nd quarter foreign exchange.
2,800 students studying abroad
In the letter from the executive director, she said that since HEC’s inception, it had been assigned the task of human resource development, and currently, more than 2,800 scholars are studying in foreign universities.
It was mentioned in the letter that the HEC remits scholarship funds periodically to partner agencies, foreign universities, and Pakistan embassies or high commissions on account of stipend and tuition fees, etc. The commission and government of Pakistan cannot back out from their responsibility to send stipend or fee urgently to the scholars as per approved PSDP schemes,” the letter said.
“Therefore, Higher Education Commission would appreciate your kind cooperation in releasing a foreign exchange budget equivalent to Rs4,750 million at the earliest. Earlier communication (dated December 23) is also attached herewith,” it added.
An HEC deputy director on December 14 stated that the commission had submitted the request of Rs 4.750 billion, foreign exchange allocation, which had been critically examined considering the overall economic scenario of the country. However, “as per discussion, the revised essential and urgent FE requirement of the universities and HEC programs and project are summarized below,” the letter said, seeking the urgent release of Rs2,300 million. On December 23, the ED, through the letter, sought to release Rs4,750 million for the second quarter of the financial year 2022-23.
However, on December 28, the Finance Ministry informed the HEC about releasing Rs2,300 million (approximately $10.2 million). “The release of the remaining amount would be considered later,” the letter from Finance Division dated December 28 stated. Apparently, not satisfied with the response of the Finance Division, the ED wrote a new note on December 30 demanding the release of Rs4,750 million.
Sources said the government had never decided to stop funding; however, it was taking utmost care while releasing the foreign exchange budget. Quoting data released on December 23 by the State Bank of Pakistan, the sources said the country had only $11.76 billion – $5.8bn with the SBP and the rest with private banks.
