Current Situation
The Private Higher Education Sector in Pakistan
166 The private sector has long played an important role in the delivery of education in Pakistan. Throughout most of Pakistan’s history, however, the private sector role in education was confined to the school level. In 2003/04, the private sector market share was highest at the primary school level (42 percent) and lowest at the secondary school level (30 percent). By contrast, at the higher education level, 23 percent of students were enrolled in private institutions– excluding distance education-- in 2003/04
167 The private university sector in Pakistan dates back only to the mid-1980s, when the Aga Khan University and the Lahore University of Management Sciences (LUMS) were established in 1983 and 1985 respectively. The early development of private universities was made possible by the promulgation of the National Education Policy (NEP) of 1979, which recognized the need for private involvement in education and reversed the ban on private HEIs that had been introduced under the NEP of 1972. The real take-off did not begin in earnest until the mid-1990s, with the number of private institutions growing from 6 in 1994/95 to 19 in 1999/00. Since then, the number of private universities and DAIs rose from 19 in 1999/00 to 54 in 2005/06 (see Annex 3). Data on private HE enrollments are only available from 2001/02 and at an aggregate level. There were just over 61,000 enrollments at private HEIs in Pakistan in 2003/04. This represented around 23 percent of all HE enrollments in that year. Between 2001/02 and 2003/04, private HE enrollments grew by just over 17,000, an increase of nearly 40 percent (compared to an increase of 60,000 or 42 percent in public HE sector enrollments).
168 A number of factors explain the rapid growth in the private university sector in Pakistan. A key driver is the inability of the public sector to meet the burgeoning demand for higher education in the country. Private HEIs report considerable excess demand for places, with anywhere from 2-6 applications for each student admitted in some areas. The increasing popularity of Cambridge ‘O’ and ‘A’ levels has resulted in increased numbers of quality high school graduates eligible for admission into higher education.
169 The reversal of the anti-private sector Education Policy of 1972 and the subsequent passage of supportive legislation in provinces such as Punjab, NWFP and Sindh, has played an important role in lifting demand for private HE. Other important factors that explain the growth in the sector include: (i) a growing middle class; (ii) ‘pull-factors’ such as the more modern and job relevant curriculum at private HEIs; and; (iii) ‘push factors’ such as the declining quality of provision, poor infrastructure, the lack of equipment, ‘session jams’, and concerns about political influence in university affairs at public HEIs
170 Two provinces – Sindh and Punjab – make up over 80 percent of all private HE sector enrollments in Pakistan. Sindh has the highest private sector market sector share (41.1 percent), followed by Punjab (16.3 percent) and 16 percent in NWFP. Private HEIs are found mostly in the Federal area of Islamabad and provincial capitals, where populations and incomes are higher. In 2005/06, Karachi had the largest number of private HEIs (23). This was followed by Lahore (15), the Federal area, Faisalabad and Peshawar (all with 3).
171 Private HEIs tend to be much smaller, employ more visiting (part-time) teachers and employ staff with lower qualifications than their public counterparts. Visiting staff are drawn from either public HEIs or industry, and are used more in areas such as business and IT. Teachers at private HEIs earn higher salaries than do teachers in public universities who are on the standard public service pay scale. However, the private pay differential is smaller for teachers on the ‘tenure track’ program initiated by the HEC. The 18% increase in the salary of staff in public university decided in June 2006 is reducing the gap.
172 Private HEIs are primarily teaching institutions, although some such as the Center for Advanced Studies in Engineering (a private affiliated college) do conduct advanced research. Some private HEIs provide consulting services to industry. One of the more significant providers so such services is the Center for Advanced Studies in Engineering (CASE). Mohammad Ali Jinnah University is currently setting up a formal consulting arm to its university.
173 Private HEIs offer fewer ‘general’ programs such as biology, math or physics. In 2003/04, about one-third of bachelor-level enrollments in the private sector were in General universities, compared to two-thirds in the public sector. Nearly 40 percent of bachelor level enrollments in the private sector were in Business universities, compared to less than 2 percent in the public sector. Private HEIs in Pakistan offer a more limited range of job-oriented courses and programs than their public counterparts. These include ‘modern’ programs such as Telecommunications and Networks, Telecommunications Engineering, Fashion Design, Nursing, Technology Management and Development Studies, Computer Science and Business Administration.
174 According to most observers, including government officials, business representatives and others, graduates from the more established private HEIs – including the Aga Khan University, the LUMS and GIK – are well regarded in the marketplace. Although official statistics are not available on labor market absorption of HE graduates, most observers believe that graduates from top private universities are successful finding work upon graduation. The labor market acceptance of qualifications from many of the newer private HEIs remains untested. There is evidence that employers recognize differences in the quality of tuition at different private HEIs and also see value in HEC recognition. Employers often advertise for candidates from HEC recognized institutions and ‘reputable’ HEIs. The private HE sector is competitive with the public sector in Pakistan, despite the requirement to pay tuition fees in the former.
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