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Regulate quality, not finances, says private sector
LOOSELY defined, a private school is an educational institution not funded by any tier of government, and, therefore, is not subjected to regulations governing public schools. But should the sector, which has seen impressive growth, be regulated at all?
“Yes the sector should be regulated. Regulation should be there for quality, not finances,” said Kashif Ali Mirza, President of All-Pakistan Private Schools Federation (APPSF).
The APPSF, according to its website, has 173,110 member schools; 97,810 in Punjab, followed by 32,850 in Sindh, 24,660 in Khyber Pakhtunkhwa, 5,880 in Balochistan, 2,380 in Islamabad, and 780 in FATA. Another 8,750 schools are in Azad Jammu-Kashmir and Gilgit-Baltistan.
“Rather than the market forces, if it is certain government official deciding ‘regulation’, it makes no sense,” he said. “Look at any other sector in Pakistan. There is no such thing as financial regulation, so why force it upon us?”
Mirza pointed out that health, education, food, housing and security are sectors directly related to public interest. “But you must realise all these sectors represent the responsibility of the state.”
“The private sector has stepped in to meet the need gap. All over the world, anything you do privately will be expensive and the same is the case here. There are 25 different taxes and fees that we are paying to the government and yet getting abuses in return,” he claimed.
His lament was rather lengthy. “Whenever the country is ruled by the army, the private education sector gets relief, but when the civilians come to power, they just get on our case and give the impression that it’s in public interest. Take the example of Zia-ul-Haq and Zulfiqar Ali Bhutto. The former exempted the private education sector from taxes, while the latter nationalised all institutions in his time and ended up creating a big mess. The present government has only added to our woes by adding ‘compulsory security’,” he grumbles.
“Nowadays, the biggest issue is the cost of security which most schools are unable to meet. A medium-level school ends up paying Rs1.5-2.5 million on security cost alone. Add to it the monthly running expense which ranges from Rs50,000 to Rs200,000. Bigger schools have a capital investment of Rs5-40 million and the running cost is Rs1-1.5 million a month. However, we are now forced to take the fees back to the 2014 level which did not include the security cost,” Mirza explained.
As per government data, Rs7,160 is the amount the government spends on educating a student in a public school. Of this, Rs2,760 is the academic costs, while the remaining is spent on building, facilities and administration costs.
Earlir this year, Punjab Assembly passed the Education Authority Bill which allows a 5pc increase in schools fees annually. It limits admission fee to a maximum of the monthly tuition fee. Violating the law can lead to a fine of up to Rs2 million.
“Schools are supposed to design a case, take it to the relevant competent authority/EDO education, prove the case and then plead for an increase in fees. Now it is at the discretion of the competent authority if the fees can be raised by 1pc, 2pc or 5pc,” argued Mirza.
He went on to explain how this did not add up to the yearly costs. “It’s a misconception that private schools are built on amenity plots. Most schools are on rented premises; with an annual rent increment of 10-15pc. Then there are the utility charges. Add to it the marketing cost, teachers’ salary with an annual increase, trainings, etc. If you ask me to cap the fee increase to 5pc, what am I supposed to do? Am I to give the teachers a 3pc salary increase annually? How am I to cover the cost of security which is the state’s responsibility to begin with,” asked Mirza.
According to APPSF data, 85pc member schools have a maximum monthly fee of Rs1,000, followed by 13pc chaging up to Rs2,000. Only two per cent of its members have a fee structure beyond Rs2,000 per month and up to Rs50,000.
“You have to see where the complaints are coming from? When the media reports that ‘parents are on roads’, does it bother investigating why there are only a few hundred parents who have an issue with increase in fees,” he asked, arguing that no one “from among the masses” came out on the streets to protest against fee hike.
According to APPSF, no more than 300 complaints were lodged in Islamabad, Karachi and Lahore. “Rather than choking the system, the authorities should have addressed the complaints of these parents,” said Mirza.
He said the annual increase in member schools was 10-15pc, and not 40-50pc as has been alleged by some. “Private schools have never gone for shutdowns, but we did it this time. For the past six months, we have been facing the courts as well as the media. Why not investigate and then report? The issue has been politicised needlessly,” claimed Mirza.
Published in Dawn, April 3rd, 2016
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