The Lahore High Court has ordered a medical college fee refund, directing two private medical and dental colleges to adjust or refund excess tuition fees collected from students, in a judgment that upholds the regulator’s power to cap what colleges may charge.
LHC Justice Khalid Ishaq gave the direction in a detailed judgment. The colleges must settle students’ claims within 30 working days from October 30, which runs to November 29.
The Express Tribune reported that the court dismissed three petitions by private institutions challenging the fee regulations and allowed 12 connected petitions by students and guardians.
What the court decided
The judgment upheld the PM&DC’s statutory authority to regulate and cap tuition fees. It ruled that medical and dental colleges cannot operate as purely commercial enterprises, given the link between medical education, human life and public health.
The court held that private medical colleges have no unrestricted right to fix their own fees. The PM&DC may scrutinise their proposed fee structures and financial justifications, and it may approve, modify or reject what a college proposes.
The court also barred the colleges from any prejudicial treatment of students who raised the issue, noting that affected students could seek contempt proceedings.
The legal basis for the fee caps
The court found that authority in Sections 9 and 20 of the PM&DC Act, 2022, read with Section 47, which empowers the council to make rules.
Section 20(8) requires private colleges to submit their financial statements, proposed fee structures and justifications to the council. The court said this could not be treated as a mere formality, and the duty to declare fees publicly under Section 20(7) did not make a proposed structure immune from scrutiny.
The colleges had argued that fee regulation violated their fundamental right to conduct business under Article 18 of the Constitution. The court rejected that argument, holding that the freedom to carry on a trade or business is not absolute and can face reasonable restrictions in the public interest.
Medical college fee refund: the two colleges and the amounts
University Medical and Dental College, Faisalabad, recorded 2025 income of Rs5.099 billion and a profit of Rs378.659 million. The Fee Justification Committee found it liable to refund Rs841,317 per student.
FMH College of Medicine and Dentistry, Lahore, reported income of Rs1.867 billion and a profit of Rs111.941 million, with a refund liability of Rs741,802 per student. The March 11 notification set annual fee ceilings of Rs2,026,341 for the Faisalabad college and Rs2,052,099 for FMH.
How the fee limits were set
The PM&DC first fixed the annual MBBS and BDS fee at Rs1.8 million on April 28, 2025, allowing a 5 per cent rise for the 2025 session and CPI-linked rises from 2026.
An October 6, 2025 notification capped the fee at Rs1.89 million for 2025-26. After the Fee Justification Committee reviewed audited accounts, a March 11 notification set revised ceilings for different categories of institutions.
The court noted the two institutions had taken part in the fee process through the Pakistan Association of Medical Institutions, so they could not then challenge the regulator’s authority.
Why the ruling matters for students
The judgment settles a long-running question: whether the regulator can do more than record the fees colleges choose. The court said it can, and that the power includes examining the numbers behind a fee.
For students, the practical result is money back. The two colleges must now work out each student’s claim and adjust future fees or pay refunds within the 30-working-day window.
For other private colleges, the ruling is a warning. The fee-control mechanism is lawful, and the court said it protects students from unjustified demands while keeping the resources needed to maintain teaching standards.
Education policy is moving on several fronts: Sindh has opened scholarships for transgender students, and Islamabad is setting up an autonomous education body. The PM&DC requires 60 per cent marks for MBBS and BDS admission, and the University of Health Sciences has been expanding nursing seats in Punjab.
Frequently asked questions
Which colleges must refund excess fees?
University Medical and Dental College, Faisalabad, and FMH College of Medicine and Dentistry, Lahore. The first must refund Rs841,317 per student and the second Rs741,802 per student.
By when must the refunds be made?
Within 30 working days from October 30, which runs to November 29, 2026.
What are the fee ceilings for the two colleges?
Rs2,026,341 a year for University Medical and Dental College, Faisalabad, and Rs2,052,099 a year for FMH College of Medicine and Dentistry, Lahore.
What did the court say about the PM&DC’s authority?
It upheld the PM&DC’s statutory authority to regulate and cap tuition fees under Sections 9 and 20 of the PM&DC Act, 2022.
