A case of private schools survival!

Author: Kashif Mirza

The universal forces will finally uproot the fearful infection of coronavirus, but the world would feel the economic cramps in future. Due to the outbreak of coronavirus across the country, Government had closed educational activities in the country in order to contain the virus.

The governments of the developed countries like US, UK, European countries are already giving free school education to their nationals at both public and private sector. This is how the world is doing to mitigate the worst economic impact of COVID-19. The entire world is showing sympathy to the humanity by scarifying everything to keep the wheel of economy to the track in some way or the other. In these circumstances, All Pakistan Private Schools Federation (APPSF) offered voluntarily its more than 200,000 private schools throughout the country to the federal and provincial governments for establishing the isolation centres. All Pakistan Private Schools Federation also offered voluntarily to the federal and provincial governments, its more than 1500,000 private schools teachers throughout the country as volunteers to work in these isolation centres to serve the nation. Moreover, APPSF also created a fund for the deserving students to support their educational needs.

The students, staff, and owners of almost all private schools have always 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. The announcement of PM’s recent economic relief package of Rs 1.2 trillion and establishment of Corona Relief Fund are palpable, but unfortunately it lacks the plan about the schools which could burden the pockets of the 200000+ medium and low cost school people and 1.5+ million teachers during corona massacre, who also have kids, families and economic issues. Despite the economic commotion caused by coronavirus, the life of private schools in Pakistan is quite unsafe. Lockdown has been imposed across the country with no teachers and staff assured of receiving salaries for the month as mostly people cannot performing regular office duties. That the school administrations have to pay salaries to the staff and rent to the landlords for which they demand fee from parents. Schools will remain closed to the end of May, and then the summer vacations start. The private school owners could not play their vital role, understanding the fact that they are already under the heavy burden of the staff Salaries, rents and daily working cost during the lockdown, resulting in completely shutdown of medium and low cost schools.

Private schools have launched online portals and mobile phone applications to deliver distance education. This is really a great thing on the part of schools and academic materials schools are sharing online may figure guided learning patterns in the young brains.

Previously, most of the private schools have already met the terms of the Supreme Court’s verdict of December 2018 that instructed them to decrease the monthly fees by twenty per cent. Why to leave all things on the shoulders of the schools management alone? The apparent failure of the state to provide quality education should catch attention of the Supreme Court that should ask the federal and provincial governments regarding fulfillment of the obligation under Article 25-A of the Constitution in the education sector. There is a need of developing a mechanism to counter resistance on the part of private schools to explain that such resistance over reduction of facilities in schools, increase in number of students in classes, reduction of teaching staff, reduction in their salaries and other related matters.

The APPSF and other private schools came together over the matter and also argued that the we provide state of the art educational facilities, back up power supply, air-conditioned rooms, fine furniture and well-educated members of staff. We could not be compared with government-run schools, where students are seated with more than 70% missing facilities. Schools will only be allowed to raise fees by 5 per cent annually. Schools, especially smaller institutions, will not survive with such restrictions.

Private schools conservatively educate more than 50% of children in Pakistan, and nearly 60% in Punjab. There are 207,000 private schools in all over the Pakistan. There are 117,810 in Punjab, 39,850 in Sindh, 29,660 in KPK, 6,880 in Balochistan, 4,450 in Islamabad and 9,450 private schools are working in Azad Kashmir and Gilgit-Baltistan and others areas of Pakistan. About 23 million students are studying in these 207,000 private schools. Approximately 1.5 million teachers work at these schools. On the other hand if we see the last 10-year, only in Pakistan more than 21,000 public schools decreased from 152,000 public schools to 131,000 public schools. It is important to mention here that after paying all above costs and more than 25 government taxes, out of 207,000 schools, there are 85% schools which charge below than Rs 2,000 fee. Moreover, there are 13% schools which charge below than Rs 5000 fee and only 2% schools are charging above than Rs 5000. It is very much clear that 98% 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.

Quality and good education is not inexpensive anywhere in the world. The only difference is that funding comes from government or other sources

Most private schools in Pakistan operate on 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 know 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 by 27% 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 25% per annum. An additional 16% GST has further affected this cost. Over the past 3 years, on average, computer equipment has increased by 25% per annum, laboratory equipment by24% per annum, school furniture and fixtures by 23-25% per annum, vehicles by 32%, etc with an additional 16% GST! Many private schools use diesel generators. The capital cost of generators has increased by an average of 28% per annum. The above investments are depreciated in the annual expense of private schools, since capital is not free – it has a cost.

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-profit institutions 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. 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?

Now the question is how will no fee in the vacations or zero fee increase impact teachers? The 207000 private schools in Pakistan are collectively the largest employees of professional women in the private sector in Pakistan. Approximately 1.5 million teachers work at these schools. How will no fee in the vacations or zero fee increase impact students & parents? Private schools will gradually lose qualified professionals to other sectors. Private schools will not be able to survive and 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.

We recommend that government 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. There is also clear example of Army Public Schools (APS) of high standard quality education. Its all due to the policy of Army, who sent the kids of their officers only in their Army schools to up lift the quality standard of Army schools.

In these circumstances we recommend, the government declare exemption from all the 25 taxes imposed on private schools till the achievement of 100% education rate. Earlier in the period of Army government, every time more focus was on the promotion of education rather than money minting like political governments. Army government also declared 5-year tax exemption in the past for educational institutions.

Based on capacity, 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.

The writer is The President of All Pakistan Private Schools Federation and his mail ID is president@pakistanprivateschools.com

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