Public sector universities in Azad Jammu and Kashmir (AJK) are facing severe financial difficulties. The Vice-Chancellors and the Vice Chancellor, President of the state have urgently called on the state government for an annual grant to prevent a potential crisis, said a press release. In a letter to the Prime Minister, the President of AJK highlighted the precarious situation, expressing concerns about the potential unemployment of 3,500 staff and the adverse impact on 30,000 students. This follows a letter from the Vice-Chancellors detailing the financial crisis and urging government intervention to maintain academic excellence and educational activities. They cited stagnant Higher Education Commission (HEC) funding, increased salaries, and pension obligations as key issues. Despite rising costs due to inflation, the annual HEC grant has been stagnant for five years. Salaries for government employees have increased by 135% in six years without corresponding budget adjustments for universities, exacerbating financial strain. Increased pensions have further contributed to the challenges, with no additional government funding to cover these costs. The President emphasized the universities’ efforts to meet international standards through expanded undergraduate and postgraduate programs, crucial for equipping youth with competitive skills. However, financial constraints hinder this mission. Following the 18th Amendment, higher education funding and management were devolved to provinces. For example, the Balochistan government has allocated Rs. 5 billion for its public universities in 2024-25, and the Sindh government has allocated Rs. 35 billion for its universities. These steps highlight proactive provincial support for higher education. In contrast, AJK’s higher education suffers from a lack of similar support and funding, affecting education quality. To address this, the AJK government has requested Rs. 5 billion in the recurrent budget for 2024-25. This grant is essential to overcoming fiscal challenges and ensuring the continuation of educational activities. University officials have submitted detailed documents and a formal request for this funding, urging prompt action from the Prime Minister and relevant authorities. This grant aims to bring AJK universities in line with their counterparts in other provinces, which receive adequate funding from their provincial governments. The call for action is crucial for securing the long-term future of higher education in AJK. Universities play a pivotal role in regional socio-economic development, fostering innovation, research, and global competitiveness. Timely allocation of funds is imperative to prevent financial collapse and ensure the sustainability of these institutions, vital for the development of the region and the country.