By Kashif Mirza
I would like to address the independent Pakistani media, which has the
capacity of setting agendas and mobilizing public opinion and, through
them, the government, parents, and the general public. I need to
respectfully point out that the public education system is almost
destroyed in the country and, if the current debate regarding private
education is not channelized in a healthy direction, the private
education system, which caters to nearly half the Pakistani population,
particularly the middle and lower-middle classes, will suffer a similar
fate. It needs to be stressed that Article 25-A of the Constitution
declares that it is the State’s responsibility to provide “free and
compulsory education to all children from the ages of 5-16 years”. It is
not fair that this justifiable public wrath is being deflected towards
private schools.
Quality and good education is not inexpensive
anywhere in the world. The only difference is that funding comes from
government or other sources. This explains why some of the best
non-profitinstitutions in the world like Harvard, Princeton, Yale,
Oxford and Cambridge, along with some of the leading Pakistani
educational institutions, are also amongst the most expensive. The time
has now come to tell the truth and untold story of private schools.
Everything stated is factually correct and we challenge anyone to enter
into an intelligent public discourse on these matters for the benefit of
the people of Pakistan:
Under Article 25-A of the Constitution,
it is the responsibility of the State to provide education. Though it is
not their role, private schools are helping the government with the
fulfillment of its moral and constitutional responsibility. Private
schools graduates have risen to the highest positions in Pakistan and
internationally. Private schools enhance opportunities for admission
into leading national and international universities, and open up
unparalleled job opportunities for young, lower-middle class and
middle-class Pakistanis.
Private schools conservatively educate
more than 50% of children in Pakistan, and nearly 60% in Punjab. There
are 173110 private schools in all over the Pakistan. In which there are
97810 in Punjab; 32850 in Sind; 24660 in KPK; 5880 in Baluchistan; 2380
in Islamabad ICT and 9450 private schools working in Azad Kashmir and
Gilgit-Baltistan and others areas of Pakistan. About 23839431 students
are studying in these 173110 private schools. Approximately 15 lac
teachers work at these schools. On the other hand if we see the last
10-year, only in Punjab more than 9000 public schools decreased from
63000 public schools to 54000 public schools and the same situation is
also there in other provinces of Pakistan.
The students, staff,
and owners of almost all private schools have contributed generously
whenever the country has been stricken by earthquakes or floods from
2005 to 2014. Private schools are fully aware of their social
responsibility. Most critically, in more recent times, Private Schools
have been contributing to the creation of a progressive and
internationally minded youth who are playing their part in the
development of a modern Pakistani state.
The government talks of
the Consumer Price Index (CPI), which is not a reliable measure even for
households. For private schools, it is completely irrelevant. In short,
the cost of operating schools increases by an average of 15-20% per
annum. We are prepared for an intelligent debate with anybody on this
statement. Private schools do not exist in an economic vacuum: when the
input costs of every sector of the economy are going up, how can private
schools remain magically immune? They do not possess Aladdin’s lamp to
reduce costs. Private schools are treated as fully commercial entities
by the government, and pay 33% income tax, 17% GST, 3% Super Tax, 6%
EOBI, 6% Social Security, heavy property commercialization fees,
commercial property taxes, school registration fee, registration visit
fee, sports funds, school affiliation fee, affiliation visit fee,
renewal fee of school registration, renewal fee of school affiliation,
building fitness certificate fee, building hygienic certificate fee,
endowment fund, commercial utility bills, service tax, professional tax,
trade tax, building board rent tax, parking fee, sanitation fee,
scouting fund, armed licenses fee, and a host of other taxes and levies…
It
is important to mention here that after paying all above costs and more
than 25 government taxes, out of 173110 schools, there are 85% schools
which charge below than Rs 1000 fee. Moreover, there are 11% schools
which charge below than Rs 2000 fee and only 4% schools are charging
above than Rs 2000. It is very much clear that 96% schools are not in
the limit of heavy fee structure. On the other hand, according to the
government data per student cost in a public school is about Rs 7960 per
month with poor quality of education.
Despite of all above untold
story and facts there are also more crippling input costs for private
schools. It has been alleged by some that private schools have raised
their fees by percentages ranging from 30% to even100% in August
2015!This is factually incorrect. The average fee increase for the vast
majority of private schools has varied between 10-12%.In many cases,
“Aug/Sept 2015 fee increases” are in fact the outcome of children moving
from pre-primary to primary school, primary to middle, or middle to
secondary/higher secondary levels. Every private school in the world,
including those managed by the government, has different “fee brackets”,
since facility and faculty costs increase substantially as students
progress to different/higher levels.
Most private schools in
Pakistan operate out of rented premises. Rents increase by 10% per
annum. Typically every 3 to 5 years, lease agreements are renewed, at
which point landlords aggressively renegotiate lease terms. Landlords
are aware that schools have limited options because their cost of
relocation is very high. The compounded impact of annual rent increase
(10%) and end-of-term lease renegotiation (any percentage)is an average
of 15-20% or more per year. Staff & teacher salaries account for
approximately 50% of the fee income of private schools. Teachers’
salaries are revised upwards, on average, from 10% to 20% per year but
based on performance appraisal; in some cases, the increases are far
higher.
Average electricity expenses across Pakistan have
increased by17% per annum over the last few years. Private schools pay
the “Commercial tariff”, which is the highest tariff category. In
addition, many private schools operate generators for back-up power.
Maintaining generators is prohibitively expensive. After December 2014,
private schools have exponentially increased their expenditure on the
provision of security – a fundamental responsibility of the state. There
are also other escalating costs of construction and capital items
construction cost (steel, cement, paint, wood, etc.) has increased every
year by at least 15% per annum. An additional 16% GST has further
affected this cost. Over the past 3 years, on average, computer
equipment has increased by 15% per annum, laboratory equipment by14% per
annum, school furniture and fixtures by 18-20% per annum, vehicles by
12%, etc with an additional 16% GST! Many private schools use diesel
generators. The capital cost of generators has increased by an average
of 18% per annum. The above investments are depreciated in the annual
expense of private schools, since capital is not free – it has a cost.
Now
the question is how will zero to 5% fee increase impact teachers? The
173000 private schools in Pakistan are collectively the largest
employees of professional women in the private sector in Pakistan.
Approximately1.5 million teachers work at these schools. Private schools
will not be able to adequately reward these teachers or continue to
offer free education to their children which are approx.
3-millionchildren. Private schools will not be able to spend on the
professional development of teachers.
How will zero to 5% fee
increase impact students& parents? Private schools will gradually
lose qualified professionals to other sectors. Private schools will not
be able to maintain current levels of service. The number of children
per class will increase, co-curricular, extra-curricular and value-added
services may be cut down, and quality and overall standards will
therefore suffer. Private schools remain committed to providing the best
possible security arrangements for students. With 0% or 5% fee
increase, we now require that the government post Police & Rangers
outside every school. This is anyway the government’s responsibility,
more so under the current security conditions. Scholarships and
financial aid for millions of students across Pakistan, which private
schools offer despite financial constraints, may be affected.
Quality
and good education is not cheap anywhere in the world! Some of the
leading non-profit schools and universities in Pakistan are also amongst
the most expensive: IBA Karachi, LUMS, LSE, BNU, AKU, KGS, Aitchison
College, and dozens of others. This is because they source the best
faculty and resources from across Pakistan. Aitchison College, Lawrence
College and Sadiq Public School, whose Boards are controlled by the
government, are far more expensive than most private schools, even
though their lands and buildings are free and they are recipients of
government grants. Does this not mean that the government is
“profiteering”? If not, why is the private sector profiteering?
We,
APPSF, recommend that Govt. employees and bureaucrats of all levels
should be required to send their children to government schools. This is
the most effective way of uplifting government schools. Were the media
to focus on the uplift of government schools, the government would not
be able to escape its responsibility and shift the blame and public
wrath to private schools.
Moreover, Government must declare
exemption from all the 25 taxes imposed on private schools till the
achievement of 100% education rate. Based on capacity, leading private
schools should be encouraged to enter into public-private partnerships.
We, too, are ready to play a constructive role to uplift the standards
of government schools. Until the state schools are improved, government
should issue ‘fee vouchers’ to lower-middle class and middle class
families to send their children to private schools. This is common in
many developing& developed countries and will help the government
escape rising public wrath against its inability to meet its
constitutional and moral obligations. Unless points highlighted above
are given serious consideration by the government, we fear that private
schools to suffer the same fate as public sector schools – with grave
consequences for the future of the nation.
