News of protests in Pakistan have become so commonplace that many times they slip by completely unnoticed. Last week, a group called, All Pakistan Private School Management Association gathered in front of the National Press Club in Islamabad, to lodge a protest against the taxing of private education from coming fiscal year onwards.
If there is any solution to Pakistans problems, it is educating the masses. Governments, present and past, have made numerous statements reaffirming the importance of education in their plans. Actions speak louder than words, and there has been little to show in terms of government spending on education. Pakistan allocates just two percent of its GDP on education.
Policy makers in Islamabad have realized that the government collects less revenue than it spends. In an effort to step up collection, a comprehensive tax on goods and services is due to be implemented from July 1. Unfortunately, even the education sector is not exempt from this changing regime.
Elementary research indicates that throughout the world, governments incentivize education through tax credits on money spent on the attainment of education. That means, every dollar spent on education may be deducted from future earnings of the student. Pakistan, however, is cruising along the highway, in the opposite direction.
"I totally disagree with the imposition of VAT on education", says Dr. Abuzar Wajidi, Dean of Management and Administrative Studies at the University of Karachi. He further stated that the environment in public schools is not conducive for learning, which is why many parents today opt for private schooling.
Private education, from kindergartens all the way to universities, has increased in terms of enrollment in the past 20 years in Pakistan. A few decades ago, private education was limited to the elite of the country, but now even the poor have no option but to send their loved ones to relatively cheaper, yet still privately run schools.
"There is a need to provide equal opportunities, in terms of education, to all citizens whether they can afford it or not" according to Mukhtar Ahmed, Member Higher Education Commission of Pakistan.
In the absence of a well functioning public education system, private education has become an industry. Numerous schools have propped up all over the country in recent years, and most classrooms are packed to the brim. So, there is a clear demand for education in the country.
Demographically speaking as well, a third of Pakistans population is under the age of 15. Unless these children are properly educated, they will be unable to find meaningful work and thus be susceptible to becoming counterproductive to society.
The level of competition in academic achievement drives students to after-school coaching centres. Reportedly, these parallel educational institutions draw many students and make hefty profits. If anything, these centres should be taxed heavily. It must be remembered that these centres are not necessary, they are a privilege.
Even if the government goes ahead with the proposed tax on education, it will be very difficult to enforce. Outside of the larger, more established schools, accounting standards are hardly followed in schools setup in houses all over the country. Therefore, the possibility of schools pocketing even larger profits will become more likely.
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Private vs Public Schools in Pakistan
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Total Private Public
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Schools 256,088 182,477 73,611
Enrolment 37,462,884 25,213,894 12,248,990
Teachers 1,363,000 756,000 606,000
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Source: Pakistan Education Statistics FY08, Ministry of Education
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