Teachers at the University of Karachi (KU) continued their boycott of semester examinations on Tuesday, leaving more than 40,000 students facing difficulties as the university grappled with a severe financial crisis.

The Karachi University Teachers’ Society (KUTS) refused to call off its protest, describing ongoing negotiations and measures taken by the university administration to address financial issues as inadequate.

The protest, being held over an increase in the house ceiling rent allowance and other demands, has adversely affected academic and examination activities at the university.

University administration officials said the teachers’ body had already been informed about the institution’s current financial crisis, adding that Vice Chancellor Prof Dr Khalid Mahmood Iraqi had written to the Sindh chief secretary seeking a grant and bailout package.

Sources said the vice chancellor, in a detailed letter to the chief secretary, highlighted the university’s worsening financial condition and sought immediate financial assistance from the provincial government.

According to the letter, the issue of the house rent ceiling allowance had emerged as the main factor behind the current financial crisis and administrative unrest at the university.

The vice chancellor stated that the federal government had announced an 85% increase in the house rent ceiling for federal employees with effect from Nov 1, 2025, but the increase had yet to be implemented by the Sindh government and the university.

The teachers’ body maintained that delays in the payment of legitimate financial benefits and allowances to university employees were unacceptable, while the university administration argued that the demands could not be fully met without additional funding from the provincial government.