Despite having property worth billions in Peshawar, Charsadda: Islamia College varsity facing financial crisis

PESHAWAR: The Islamia College University, Peshawar, is facing a financial crisis despite having property worth billions of rupees in Peshawar and Charsadda cities. The rent of Islamia College University's most expensive shops in Peshawar's Khyber Bazaar is only two to three thousand rupees per month while the rent for other private shops in this area is between Rs25,000 and Rs100,000.

The university is facing an annual deficit of at least Rs100 million in rent from its commercial and agricultural properties. The university is earning a total of Rs29.7 million annually from its properties, while the university administration has estimated the total market rate of annual rent at Rs120 to 300 million. The Islamia College University, Peshawar, Rent Assessment Committee has recommended an increase in rent of commercial and agricultural properties of the university.

According to the report available with this scribe, the average rent of 222 shops in Khyber Bazaar, Peshawar, is Rs3,500 per month, which also includes only 1,800 monthly rent shop. The police department and the municipal committee have also illegally occupied the university land and are not paying a single penny as rent.

Newly-appointed Vice-Chancellor of the Islamia College University, Peshawar, Gul Majeed, told this correspondent that the issue of rent will be resolved amicably with the consent of all parties for which the administration is considering the rent issue. He said it is the responsibility of all of us to play role in alleviating the financial difficulties of the educational institution.

Khalid Ahmad Khan, President of Khyber Bazar Traders Association, told this scribe that the Islamia College University building is dilapidated and no one takes care of it, only rent is collected. It is the responsibility of the university administration to solve the legitimate problems of shopkeepers

The Public Accounts The three-member committee was headed by convener Dr Najib Zada and members Hamidullah and Irfan Ali. The rent assessment committee prepared its report on February 23, 2021 and submitted it to the university administration, in which the rents of C&W, the Cantonment Board, and private shops were also compared.

The committee has recommended an immediate increase in the rent as per the market rate. The committee has also recommended a one-year contract through negotiations with the tenants. Islamia College University Peshawar's 14 Kanals of land is located in the most expensive bazaar of Peshawar, Khyber Bazaar, which has 222 shops, flats, and offices with a monthly rent of only Rs796,000 and a total annual rent of Rs9.552 million.

According to the report of the special assessment committee of the university, the minimum shop rate in Khyber Bazaar is between Rs25,000 and Rs100,000 while the rent of the university shops is very low. The university should get at least Rs66.600 million per annum in proportion to the market rate. The university is incurring an annual loss of Rs57.048 million per annum.

Similarly, in Charsadda Bazaar, there are 213 shops, markets, and flats on 55 kanals of land of the university with an annual rent of around Rs15.288 million. According to the report of the special evaluation committee of the university, the rent of shops in Charsadda is between Rs15,000 to 40,000. It has been recommended that the rent should be at least Rs38.34 million.

The university has 2,332 kanals in Hari Chand, 1,354 kanals in Rai Mahal, and 265 Kanals in Akbari Tarnab. The total rent of the land is Rs4.934 million. Therefore, from this ratio, the university should get at least Rs18.420 million per annum as per the market rate. Thus, the university is incurring a loss of Rs9.888 million per annum.

According to the report, the valuable land of the Islamia College University in Charsadda has been illegally occupied by the police department.

The administration fixed the annual rent with the help of C&W, but for the last three years, the police department has not paid the arrears of Rs5.4 million to the university and has not even vacated the premises.

Similarly, the Municipal Committee Charsadda is also in default of Rs5.5 million of the university in respect of the bus stand rent. However, the municipal committee has filed an appeal in the Supreme Court.

The university was allotted 4,000 kanals of land in Hind Swabi by the provincial government in 2009 but a property dispute has arisen over it, the case of which is pending before the Senior Member Board of Revenue.