Funding higher education throughwaqf: a lesson from Pakistan

Purpose - This paper aims to studywaqfpractice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigateswaqfraising,waqfmanagement andwaqfincome utilisation. Design/methodology/approach - The paper is based on the views of 11 participants who are actively involved in thewaqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educationalwaqfinstitution, personnel ofwaqfregulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources. Findings - In Pakistan, both public and privateawqafare existing, but the role of privateawqafis greater in higher education funding. However, due to lack of legal supervision privateawqafis considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company.Waqfin Pakistan is more focusing on internal financial sources andwaqfincome. In terms ofwaqfmanagement, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses.Waqfuses the income for developmental and operational expenditure, and supports academic activities for students and staff.Waqfsare also supporting some other HEIs and research agencies. Thus, it can be revealed that awaqfcan cater a sufficient amount for funding higher educational institutions. Research limitations/implications - In Pakistan, both public and privateawqafare equally serving society in different sectors, but the role of privateawqafis much greater in funding higher education. Nevertheless, the government treats privateawqafas a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. Thewaqfin Pakistan mostly relies on internal financial resources and income fromwaqfassets. As thewaqfmanagers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that thewaqfcan potentially generate sufficient amount for funding HEIs. Practical implications - The study presents thewaqfas a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selectedwaqfcases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan. Social implications - The paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, thewaqfcan help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs. Originality/value - The study confirms that thewaqfcan be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.