An urgent meeting of the Vice Chancellors of all five public sector universities of Azad Jammu and Kashmir (AJK) was held in Islamabad to discuss the severe financial crisis facing these institutions, specifically concerning the payment of salaries and pensions to university staff and pensioners. The Vice Chancellors conveyed their concerns and the potential repercussions of the financial crisis to the President of AJK who is the Chancellor of the universities following the meeting. Participants in this crucial meeting included Prof. Dr. Muhammad Kaleem Abbasi, Vice Chancellor of the University of Azad Jammu and Kashmir, Muzaffarabad; Brigadier (Retd) Prof. Dr. Muhammad Younis Javed, Vice Chancellor of Mirpur University of Science and Technology (MUST); Prof. Dr. Abdul Hameed, Vice Chancellor of Women University Bagh; Prof. Dr. Muhammad Zakria Zakir, Vice Chancellor of the University of Poonch; and Prof. Dr. Rahmat Ali Khan, Vice Chancellor of the University of Kotli. The Vice Chancellors highlighted that they have repeatedly informed all relevant forums and authorities about the financial crisis over the years through written and verbal communication, but no positive development has occurred. Consequently, the crisis has intensified, leaving the universities with no resources to pay salaries and pensions. The main reasons for this crisis include the lack of increase in funding from the Higher Education Commission (HEC) since 2017, low student fees in public sector universities, the introduction of BS degree programs in colleges, resulting in decreased university enrollments, and HEC’s discontinuation of private degree programs. Simultaneously, salaries and pensions have increased by 135% over the past seven years, rendering the universities unable to manage payments within their current financial resources.