Private schools of Punjab have rejected the 20% illegal fee cut announced by the Punjab Minister of School Education on April 6, 2020 for the following reasons:
1. The relevant Punjab Ordinance of 1984 and its amendment only provide for the calculation of annual fee increases, not fee cuts.
2. An arbitrary reduction of 20% across the board for two months will make it financially impossible for schools to help those parents who are truly in need (because they may not be able to pay the balance 80% in any case).
3. It is not possible for any enterprise to survive with a revenue reduction of 20%. Contrary to public opinion, private schools’ surpluses are below 10% (as established by the Auditor General of Pakistan on the instructions of former CJP Saqib Nisar in 2018).
4. All private school tuition fees are calculated on the basis of average expenses over 12 months including periods when schools are shut. Furthermore, even when schools are shut, 95% of overheads are fixed, such as salaries, rents, taxes, etc.
5. Unlike other sectors, private schools have received no relief package from the government at this difficult time, nor has there been any relief from landlords or public/private service providers.
6. Regardless of what the minister thinks, if there is no money to pay salaries (on account of already low fee collections compounded by a 20% reduction), then we will not be able to pay salaries.
7. Private schools will not implement this illegal fee cut and challenge it in the courts of law.
The private education sector has always recognized its social responsibility and consistently come forward during all national crises in the past. In this spirit, the All Pakistan Private Schools Federation had submitted the following 6-point ‘COVID-19 Relief Package’ to the Hon. Law Minister of Punjab, a key member of the Committee set up by the CM Punjab:
1. “Despite cash flow issues caused by low fee collections, private schools undertake not to reduce any staff or salaries in the current academic year. We will ensure to the greatest possible extent that the livelihood of our employees is not endangered and they do not become indirect victims of this pandemic.
2. “Private schools will charge monthly fees for the months of April and May 2020 from all parents.
3. “In addition, private schools will offer instalments to parents whose livelihood is directly impacted by the economic fallout of COVID-19. Affected parents should engage with school management to determine mutually acceptable payment plans for the remainder of the current academic year.
4. “In addition, private schools will ensure that there is no adverse impact on the education of a child whose parent is tested positive for COVID-19. We will ensure the continuity of education for the child during this difficult period.
5. “Finally, and in addition to their routine financial aid, private schools will establish internal COVID-19 Financial Assistance Funds with the objective of providing financial aid to parents who can establish that their income has been adversely affected by the COVID-19 pandemic. These funds will enable private schools to offer significant support to parents who are truly in need (which would in all likelihood exceed a 20% reduction over two months).
6. “Private school owners undertake that they will contribute generously towards the government’s efforts to help combat the spread of COVID-19. This may include cash contributions to the PM and/or Punjab Government’s COVID-19 Relief Funds and/or other contributions in cash and kind. We believe this is our social and moral responsibility irrespective of any effort to reconcile with the government.”
There can be no question in anyone’s mind that the above Package proposed by the APPSF would have been of far greater value to parents genuinely impacted by the COVID-19 fallout. However, it was summarily rejected by the Committee in favour of a populist and simplistic approach that passes a 20% benefit to all parents including a large number who do not require any financial assistance. The Punjab Education Minister has thus made sure that private schools no longer have the financial capacity to help parents truly in need, while also ensuring that many schools will now find it difficult to pay teaching and non-teaching staff.