KARACHI, March 28: The Sindh government has decided not to demand golden handshake money from private parties for teaching and non-teaching employees of educational institutions at the time of their denationalization, said sources in the education department.

It was learnt that the department had pleaded for relaxation in the policy pertaining to denationalization of educational institutions as private parties, which had shown interest in getting their institutions back, were finding it difficult to fulfil the financial obligations set by the government, the sources added.

A source said the government adopted a soft attitude towards the private parties interested in reowning educational institutions, which had been nationalized in two phases, under MLR 118, in 1972, and resolved to drop certain conditions in this regard.

A senior official of the department said it had been agreed at a higher level in the government that private parties, particularly community-based organizations, which claimed to run their organizations on non-profit basis, would not be asked to contribute 50 per cent towards the golden handshake planned to be offered to the teaching and non-teaching staff of educational institutions to be denationalized by the government.

While withdrawing the condition of golden handshake, the government had also asked the education department to absorb all such employees who were not to be retained by private parties into other government educational institutions, the official added.

In line with a government decision taken in August last year, the Sindh education department had invited applications for denationalization, and so far 63 applications have been received for colleges and schools in the city. Among other conditions, the government had also required the private parties to retain the staff for one year working in educational institutions before denationalization, and if they (the new owner) would not need their services after one year, they would have to contribute 50pc towards golden handshake, if any offered to the staff.

Since the declaration of the government’s policy of privatization teachers of nationalized colleges and schools had been expressing concern over the issue. They were afraid for their jobs, said a college teacher.

Now after the fresh decisions, which would be formally circulated among all concerned within a week, not only would the private sector be encouraged in taking over educational institutions but the teachers would also be assured of job security, as the government had decided to continue their services even after denationalization of educational institutions, a source in the education department said.

It was further learnt that recently when the parties, who were willing to get back two nationalized colleges, were apprised that they would be required to pay about Rs28 million on account of teaching and non-teaching staff’s salaries for one year, after denationalization, their enthusiasm was slackened. They urged the education department to move the government for a meaningful relaxation with regard to financial matters, otherwise it would be difficult for them to re-take colleges and schools.

The government was even ready to call back teachers and post them again in other government educational institutions, if the private sector did not want to retain teaching and non- teaching staff even for the first year of denationalization, the official added.