IBA raises tuition fee by 10% despite govt orders

With the increase, the institute will benefit to the tune of Rs164 million annually

Despite the economic crisis engendered by the Covid-19 lockdown and a subsequent ordinance issued by the Sindh government in May to grant university students a 20 per cent discount in fees, the Institute of Business Administration (IBA) Karachi has done the opposite by increasing its fees by 10 per cent for the academic session 2020-2021.

The IBA will benefit from this increase to the tune of Rs164 million annually, out of which Rs100 million is expected to be collected through fall semester admissions.

The IBA’s Board of Governors (BOG) approved the decision to increase the fee during a meeting held on Saturday, July 25, under the chairmanship of the institute’s executive director, Dr Akbar S Zaidi.

Sources said the recommendations related to an increase in fees were made by the varsity’s accounts and finance department during a meeting held on June 12.

After deliberation, the BOG agreed on increasing the fee by 10 per cent given the inflation in the country, adding that the university was yet to receive a final decision from the Sindh government concerning the reduction in fee as announced in May.

It is pertinent to mention that the Sindh universities and boards secretary Riazuddin was also present at the meeting. However, he did not oppose the decision.

A report presented at the meeting also mentioned the fee structures of other educational institutions competing with the IBA. These included the Lahore University of Management Sciences (LUMS), Habib University, the Karachi School of Business & Leadership (KSBL), Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST) and the Institute of Business Management. The document stated that IBA’s fee is one-third of the fee charged by Habib University and half of what LUMS is charging.

Justifying the increase in fees, the university’s finance committee said that some universities in Sindh, including SZABIST, have also increased the fees.

Agitated by the news, a student of IBA’s economics department said if the institute increased the fee, it would create problems for students and parents alike.

“They know that many families have been struggling with finances because of the pandemic. The fee structure of IBA is already much higher than other varsities. This decision is unjust,” the student, who spoke on the condition of anonymity, said.

Another IBA student, who also requested not to be named, said the institute was being run like a private university instead of a semi-government institution.

“They should abide by the provincial government’s announcement granting a discount in fee instead of increasing it,” he said.

The Express Tribune contacted IBA’s alumni, corporate relations and communications director, Malahat Awan, to confirm the news about an increase in the fee for the upcoming academic session. In response, she said she cannot comment on the issue.

“We are waiting to receive the approved minutes of the BOG meeting, which will be issued within 15 to 20 days. After that, we will be able to provide an answer,” Awan said.

Published in The Express Tribune, July 30^th, 2020.