Ali Ansari

The primary education sector in Pakistan faces many challenges relating to access to education and quality of resources. This paper evaluates the Educational Voucher Scheme (EVS) in Lahore, Pakistan aimed at increasing access to primary schooling for low income families residing in the underdeveloped areas of Lahore by using the four criteria for evaluating privatization plans in education outlined by Levin (2002): Freedom of choice, equity, productive efficiency and social cohesion. The study finds that the EVS is associated with greater choice for families as they move from a situation of little or no schooling options to a situation of many schooling options. Similarly, the EVS increases equity by providing lower income families with access to private schools, and because, as studies of private schools in Pakistan have found, that on average, private schools are associated with better resources and academic outcomes particularly for girls. Student achievement data from the EVS is limited however, the sample shows that on the whole EVS students are doing no worse than their non-EVS peers. Furthermore, studies of private schools in Pakistan show they may have a cost advantage over public schools due to lower teacher wages in the private sector therefore, the EVS could potentially lead to increased productive efficiency in the form of higher student achievement and lower school costs by giving families the opportunity to send their children to private schools. Lastly, due to the lack of regulations on participating schools, social cohesion may not be achieved under the EVS as there is no way to ensure that students experience a common educational experience. However, if individuals in society are expected to possess some minimum level of literacy to participate in social and economic institutions, then it can be argued that the EVS could increase social cohesion by equipping children with basic literacy skills.