Covid -19/Cornonavirus & Problems/woes of Private Schools

PEIs(Private Educational Institutions ) Deserve Govt's Help

A)-.No. of PEIs:300,000

Total strength of students:over 19.8 million
Staff:over 15 lac faculty

B)- Problems /Challenges for PEIs during Covid-19::
1.No income as fee collection is very low and no new admissions due to lockdown
2.Lack of financial reserves
3.Limitations in terms of generating extra income
4.Environment of fear and uncertainty has compelled parents not to cooperate with PEIs
5.No credit/loan facility from banks
6.Payment of Rent 
7.Bills
8.Staff Salaries
9.Maintenance Expenses
10.Other miscellaneous Expenses:: such as transport and drivers,newspapers,stationary and book shops
11.Personal Expenses of owners
12.Franchise fee in case of a franchise
13.Lack of resources,technical facilities and training of staff for online teaching
14.Training of staff  

C)-Assistance sought from the Federal and Provincial Governments{{

Suggestions::
1.Bailout package for private educational institutions
2.Availability of cash facility
3.Subsidies
4.Interest free loans
5.Payment of buildings rent direct to building owners/landlords
6.Plots allocation for institutions owned campuses
7.Technical support,training of staff,students and parents  and provision of strong internet connection &uninterrupted supply of internet ,and  equipment for online teaching 

8.'Phased' ,gradual and step-by-step opening of educational institutions 

9.government should issue ‘fee vouchers’ to lower-middle class and middle class families

D)-Stark Realities::

1-23 million children are still out of school(UNICEF,DAWN)

2.'12.5 -14  million children in Pakistan are involved in labour'.(DAWN,ILO,UNO) 

3.An estimated 1.5 million children live on the streets of Pakistan, according to various numbers from government surveys and private organisations.(Al-Jazeera)

4.According to a report submitted by Ministry of Planning and Development in the National Assembly of Pakistan, about 29.5% Pakistani lived below the poverty line which translates into 55 million people.

5.The government  earmarked Rs 77.262 billion for Education Affairs and Services in the federal budget for 2019-20 against the revised allocation of Rs 97.155 billion for the current fiscal year, showing a decrease of around 20.5 percent. The government also reduced the budgetary allocation for higher education sector. Pakistan's public expenditure on education as percentage to GDP is estimated at 2.4 percent in fiscal year 2018-19, which is the lowest in the region.

E)-Contribution/role+WOES of PEIs:

1.PEIs educate more than 50 % children at a very low fee

2.Most institutions are affordable for low income groups/lower stratum of the society.

3.Fee discount ,scholarships and and Free education bright students and poor children.

4.Creating over 15 lac job/Employment opportunities to teaching,no-teaching, ,administrative and auxiliary staff

5.Many other industries are supported by education sector .

6.Generation of income and jobs in transport industry 

7.Teachers,students and other staff support government in difficult times .

8.PEIs 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…

9.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.

10.Most PEIs 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 PEIs.

11. 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.

12.Average electricity expenses across Pakistan have increased by17% per annum over the last few years.  PEIs  pay the “Commercial tariff”, which is the highest tariff category. In addition, many PEIs operate generators for back-up power. Maintaining generators is prohibitively expensive. After December 2014,PEIs 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 PEIs 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  PEIs , since capital is not free – it has a cost.

13.The UN Sustainable Development Goal 4 ensures inclusive and equitable quality education and promote lifelong learning opportunities for all, and our constitution's Article 25A guarantees that the state shall provide free and compulsory education to all children of the age of five to sixteen years.

14.Allied to this is the National Education Policy (NEC) 2017-2025, articulating that without active, vibrant and flourishing private-sector achievement of national and international goals, targets and commitments such as free and compulsory education under Article 25(A) and sustainable development goals (SDGs) may not be possible.

15.PEIs are trusted by govt teachers as govt teachers continue to enrol their children in private institutions.

16.China,Sweden,Denmark,Norway,Japan,Taiwan and Germany are reopening schools.

No. of Private Schools:23839431300,000
Total strength of students:19.8 million
Total No. of teaching staff:
Total No. of non-teaching/admin/auxiliary staff:

No. Of Private colleges:
Strength of students:
No. of teaching staff:
No. of non-teaching/admin/auxiliary staff:

No. of private technical colleges and vocational training institutes/centres:
Strength of students:
No. of teaching staff:
No. of non-teaching/admin/auxiliary staff:

No of private universities:
Strength of students:
No. of teaching staff:
No. of non-teaching/admin/auxiliary staff:

Total no of private institutions in Pakistan:
Total strength of students:
Total no. of teaching staff:
Total No. of non-teaching/admin/auxiliary staff:

Problems /Challenges for PEIs during Covid-19::
1.No income as fee collection is very low and no new admissions due to lockdown
2.Lack of financial reserves
3.Limitations in terms of generating extra income
4.Environment of fear and uncertainty has compelled parents not to cooperate with PEIs
5.No credit/loan facility from banks
6.Payment of Rent 
7.Bills
8.Staff Salaries
9.Maintenance Expenses
10.Other miscellaneous Expenses:: such as transport and drivers,newspapers,stationary and book shops
11.Personal Expenses of owners
12.Franchise fee in case of a franchise
13.Lack of resources,technical facilities and training of staff for online teaching
14.Training of staff

Suggestions::
1.Bailout package for private educational institutions
2.Availability of cash facility
3.Subsidies
4.Interest free loans
5.Payment of buildings rent direct to building owners/landlords
6.Plots allocation for institutions owned campuses
Government must announce a bailout package