Financial Crunch is a situation where money is short along with other resources that places a country into crisis needing a decisive action by the country. All economic indicators show below average performance in the Financial Crunch causing unemployment, inflation, corruption, stagflation and low GDP. The 5-ways through which the Financial Crunch affecting higher education in Pakistan are given below:-
1. Non-Inclusion of Talented Students: Due to Financial Crunch new talent resources of all over Pakistan are not included in higher education’s merit list that deprives the deserved students of the country for further study and research work. In this way the country does not take the benefits of their expertise and in the short run the skills and expertise drain out from Pakistan.
2. Ban in Capacity Building: The Financial Crunch badly affects the research and development work, consequently no capacity building is observed in the country. No innovative steps are taken by the country. Due to ban in capacity building the rules and laws of Public Procurement Regulatory Authority (PPRA) are not observed. The Gross Domestic Products (GDP) become less. The foreign exchange reserves are affected by way of massive imports and compact exports.
3. Ban in Scholarship: The Financial Crunch hurts all aspects of the economy, whether they relate to the development and research sector or education sector. In the state of Financial Crunch the scholarship is banned on account of which the brilliant and the skillful students are not in a position to take higher education. On account of this the country faces the shortfall of expertise in all spheres of the economy.
4. Degradation in Thinking Mind: The Financial Crunch also hurts the thinking mind of the educationists that leads to degradation of the education system. The degradation of the education system stops the brainstorming and causes of brain drain – it means that skillful resources move out of the country.
5. Social Devaluation:
Due to Financial Crunch the students become unrest - unemployment is common amongst them on account of which they resort to street crimes and become burdens on the society. Quality and Control System also gets weakened that leads to corruption and exploitation.