South Asian University Halts Afghan Scholarships Amid Funding Dispute and Diplomatic Deadlock

New Delhi – The South Asian University (SAU), a regional institution established under the auspices of SAARC, has discontinued its scholarship program for Afghan students, citing formal objections from Bhutan over Afghanistan’s prolonged failure to meet its financial obligations to the university. The decision underscores the growing friction between fiscal equity among member states and the humanitarian imperative to support students from conflict-affected nations.

SAU President K.K. Aggarwal confirmed that the university was left with no choice but to enforce uniform standards across all member countries after Bhutan formally challenged the continued provision of benefits to Afghanistan despite its default on contributions. “We received objections from Bhutan that it was unfair for countries paying their share regularly. We have to be equal to all representing countries, hence we had to stop the scholarships,” Aggarwal told The Times of India.

A Legacy of Unpaid Dues

Financial records from the university reveal that Afghanistan has not made any contribution to SAU’s coffers since 2021. Its last recorded payment, a modest $307,000, was received in 2020, prior to the Taliban’s return to power. Sri Lanka has also not contributed since 2021, though university officials characterize its situation as a procedural delay rather than a deliberate refusal. In contrast, Pakistan, which had been largely absent from the donor list for several years, made a symbolic single payment of $69,921 in 2025. Notably, officials confirmed that no Pakistani students are currently enrolled at the university.

The Recognition Roadblock

Aggarwal explained that the core obstacle to resolving Afghanistan’s arrears is diplomatic rather than financial. Because India does not formally recognize the Islamic Emirate of Afghanistan (IEA) administration, the university lacks an official channel to engage with Afghan authorities regarding the outstanding dues or to negotiate a repayment schedule. “Since India has not formally recognised the Taliban government, the university has been unable to establish an official channel of communication to resolve the funding matter,” he stated.

The Afghan Embassy in New Delhi, which operates under the previous, internationally recognized government, did not respond to requests for comment, highlighting the fractured nature of diplomatic representation.

Humanitarian Concerns Amidst Policy Rigidity

Despite the suspension of the scholarship program, Aggarwal emphasized that SAU remains committed to educational outreach. He noted that the university has offered to provide online education to Afghan students particularly women provided the Afghan authorities grant formal approval for such an arrangement.

“We receive a lot of emails from Afghan students, many of them women, saying they want to study here but because of the ban on women’s education and visa-related issues they are unable to do so. How can a country progress if half of its strength is deprived of education?” he asked, voicing a concern shared by many international educators.

Aggarwal suggested two potential pathways for reinstatement: either another SAARC member state or an external donor agency could step in to cover Afghanistan’s financial share, or India’s Ministry of Education could extend Indian Council for Cultural Relations (ICCR) scholarships specifically for Afghan applicants wishing to enroll at SAU.

Financial Landscape and Seat Allocation

The funding data covering the period from 2021 to June 30, 2026, paints a clear picture of the university’s reliance on India, which has contributed a staggering $65.91 million. Bangladesh ($2.99 million), the Maldives ($1.82 million), Bhutan ($1.35 million), Nepal ($1.26 million), and Pakistan ($136,810) trail far behind.

This financial disparity directly influences admissions. Under SAU’s formula, student places are allocated proportionally to each member state’s agreed funding share. India commands 50% of the seats, followed by Bangladesh and Pakistan with 10% each. Afghanistan, Bhutan, Maldives, Nepal, and Sri Lanka are each allotted 4%, while the remaining 10% are reserved for international students from outside the SAARC region.

Enrolment Trends and the 2026 Intake

The impact of the scholarship suspension is already evident in enrolment patterns. During the 2024–25 academic year, SAU enrolled 10 students from Afghanistan, 23 from Bangladesh, 12 from Bhutan, 526 from India, 25 from Nepal, and three from Sri Lanka. However, no students from Pakistan or the Maldives were recorded.

For the 2026 admissions cycle, the university received 157 applications from Afghanistan across undergraduate, postgraduate, and doctoral programmes a sign of continued interest despite the barriers. Yet, due to the scholarship halt, visa restrictions, and the Taliban’s education ban, not a single Afghan applicant ultimately enrolled. The incoming class for 2026 comprises 73 students from India, seven from Nepal, six from Bangladesh, and two from Sri Lanka, with no new entrants from Afghanistan, Bhutan, Pakistan, the Maldives, or non-SAARC countries.

A Microcosm of Regional Strife

The situation at SAU reflects broader geopolitical tensions within South Asia. As India increasingly positions itself as a regional educational hub, the university’s dilemma illustrates the difficult balance between administrative fairness and the moral responsibility to provide life-changing opportunities to students from fragile states. Without a diplomatic breakthrough or external funding intervention, Afghan students already facing a dire humanitarian and educational crisis at home risk being further marginalized from regional academic collaboration.

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