ISLAMABAD (April 14, 2026) — The Islamabad High Court (IHC) was informed today that private schools in the federal capital are allegedly withholding between Rs5 billion and Rs6 billion annually by failing to provide mandatory scholarships to deserving students. Despite legal requirements, tens of thousands of children from low-income families are being deprived of their right to free education.
Key Highlights
- Private schools are allegedly keeping Rs5bn to Rs6bn by not giving required fee waivers.
- Every private school is legally required to provide free education to 10% of its students.
- Out of 389,000 total students, roughly 39,000 should be studying for free, but most are not.
- The petitioner suddenly withdrew the case just as these financial details were made public.
The 10 per cent legal requirement
Under the Right to Free and Compulsory Education Act, all private educational institutions are legally bound to reserve a 10 per cent quota for free education. This policy is intended for high-achieving students from disadvantaged backgrounds. Currently, there are 1,571 registered private schools across Islamabad that fall under this law.
صرف اسلام آباد میں پرائیویٹ سکول 10 فیصد لازمی سکالرشپس نہ دے کر سالانہ 5 سے 6 ارب روپے کما رہے ہیں، pic.twitter.com/83DV6JTTTC
— Muhammad Zeeshan Awan (@surrakimuhammad) April 14, 2026
Massive financial discrepancy
A report submitted by the Private Educational Institutions Regulatory Authority (Peira) reveals that most schools have failed to implement this policy. Legal experts estimate that the tuition fees being collected from seats that should have been free amount to a staggering amount each year. While Peira issued an urgent call for data in late 2025, many elite institutions have yet to comply.
Internal monitoring and enforcement hurdles
Peira informed Justice Raja Inaam Ameen Mihas that verifying data across different zones is a time-consuming process. To tackle this, a monitoring committee has been formed to ensure that schools do not simply provide “paperwork” but actually enroll the required number of scholarship students. The authority warned that schools failing to comply will face strict action.
Surprise withdrawal of the petition
In a move that has sparked debate within legal circles, the petitioner who originally brought the case moved to withdraw the petition just as these specific financial details became part of the judicial record. Critics argue that ending the proceedings now allows schools to avoid a full audit and keeps the implementation of the scholarship system in a state of uncertainty.
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