ISLAMABAD — The Federation of All Pakistan Universities Academic Staff Associations (FAPUASA) and the All Government Employees Grand Alliance (AGEGA) have strongly opposed the federal government’s plan to end the 25% tax rebate previously given to university teachers and researchers.
Speaking at a joint press conference at the National Press Club, FAPUASA President Dr. Mazhar Iqbal, Islamabad Chapter President Dr. Muhammad Iqbal Jatoi, Central Information Secretary Dr. Muhammad Jadoon Khan, and AGEGA Chief Coordinator Rehman Ali Bajwa called the move a direct blow to Pakistan’s already struggling higher education and research sector.
They demanded that the tax rebate be immediately reinstated and made permanent. They also urged the government to increase the recurring grant for higher education to at least Rs200 billion to cope with inflation, the growing number of institutions, and national development goals.
“If the government ignores our genuine demands, we will have no choice but to launch a nationwide protest movement, starting with shutting down universities and moving towards a sit-in in front of Parliament,” warned Dr. Mazhar Iqbal.
The speakers reminded that this tax rebate was first introduced in 2006 under General Musharraf at a 75% rate to encourage research and teaching excellence. In 2013, the PML-N government reduced it to 40%, and now, in 2025, the same party plans to scrap it entirely — a move they say shows continued neglect of the academic community.
They stressed that this relief was never a luxury; many teachers and researchers pay for publishing papers, lab chemicals, fieldwork, and attending conferences from their own pockets. Removing this benefit will demoralize educators, slow down research output, and worsen brain drain — something Pakistan cannot afford.
The FAPUASA team highlighted that while the government blames the IMF for raising concerns about the rebate, it found no problem spending billions on luxury vehicles and approving up to 600% salary hikes for parliamentarians.
“This selective austerity only punishes the education sector while rewarding the privileged class,” they said.
They also pointed out that while the national budget has grown by nearly 196% since 2018, the recurring grant for higher education remains frozen at Rs65 billion. Meanwhile, the number of public universities has risen from 126 to 160, with ever-rising expenses, salaries, pensions, and operational costs.
According to the Pakistan Economic Survey, just 0.8% of GDP is spent on education — far below UNESCO’s recommended 4-6% — and only 0.37% will be allocated to higher education in the upcoming fiscal year. They noted that Pakistan now lags behind India and Bangladesh in this regard, despite political promises to allocate more.
Last week, a FAPUASA delegation presented their case to the National Assembly and Senate standing committees on finance and met with leaders of PPP, MQM, and the National Party — but so far, no concrete action has been taken.
They reiterated their joint demand: restore the 25% tax rebate for teachers and researchers immediately and boost funding to at least Rs200 billion. “A nation that sidelines its teachers and researchers cannot compete in today’s world,” they concluded.
If the government fails to respond, FAPUASA and AGEGA vowed to call for nationwide protests, starting with university shutdowns and potentially culminating in a sit-in outside Parliament.
