In a revelation that has raised serious questions about compliance in the education sector, the Islamabad High Court (IHC) was informed that private schools in the federal capital may be withholding between Rs5 billion and Rs6 billion annually by failing to implement a legally mandated scholarship quota for underprivileged students.
The disclosure surfaced during a writ petition hearing before Justice Raja Inaam Ameen Mihas, focusing on the regulation of private school fees. Submissions presented by the Private Educational Institutions Regulatory Authority (PEIRA) indicated widespread non-compliance with provisions outlined in the Right to Free and Compulsory Education Act, 2012.
According to court records, 1,571 registered private schools operate across five zones of the Islamabad Capital Territory, serving approximately 389,000 students. Under the law, at least 10 percent of enrolled students—amounting to nearly 38,900 children from low-income backgrounds with strong academic performance—are entitled to free education.
However, the court was informed that most institutions have failed to meet this obligation. Legal assessments, based on prevailing tuition fees in the capital, estimate the monetary value of the unfulfilled scholarship quota at a staggering Rs5 billion to Rs6 billion each year.
In its response, the regulatory authority stated that it has initiated steps to enforce compliance. A circular issued on September 26, 2025, directed all private schools to submit detailed data on scholarship admissions for the 2025–26 academic session. While some institutions have complied, many have yet to respond, prompting the formation of an internal monitoring committee tasked with ensuring meaningful implementation of the quota. The authority warned that strict action could follow against defaulters.
Despite the gravity of the findings, the case concluded without a judicial directive after the petitioner withdrew the plea shortly after the financial discrepancy was formally recorded. The withdrawal leaves the issue unresolved, with no binding orders issued for enforcement or recovery.
Legal analysts caution that the absence of a court ruling may allow non-compliant institutions to continue bypassing the law without immediate consequence. The proceedings also referenced the government’s “No Child Left Behind” initiative, which aims to enroll 25,000 out-of-school children. Observers argue that strict enforcement of the existing 10 percent quota alone could surpass this target.
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While authorities insist that enforcement efforts are ongoing, the lack of judicial intervention has left a significant financial gap unaddressed and the educational prospects of tens of thousands of disadvantaged students uncertain.
