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With Every Hardship Comes Ease

In over two decades of our work to enable quality education for the less privileged, we have not witnessed such disruption and uncertainty as caused by the coronavirus crisis this year. Our schools and all other programmes came to a screeching halt in April - leaving us, like the rest of the world, to figure out how to adapt to new ways of working. I’m extremely proud and grateful to my team at TCF who rose up to this novel situation, acting swiftly to put our work back on track and move forward with our mission. The conversations around the COVID-19 pandemic are dominated by challenges posed to human lives and global economies. But amidst this, I also believe that this crisis gave us an opportunity to deconstruct the ‘normal’ and reimagine our lives, our work and our future. While we continue to unfold the ‘new normal,’ I’d like to share a few initiatives that we all can take pride in.

Sustaining our Team

In the midst of job losses, pay cuts and furloughs, the TCF Board and Management decided that it will not lay off any TCF employee, including our teachers and principals, during the COVID-19 crisis. This decision was taken in early March when there was uncertainty as to how this pandemic would impact our donation flow. We committed ourselves to stand by our TCF family – our people who work tirelessly every day for the cause. It helped to keep the morale of our employees high and give them a sense of security. They were able to focus on their families, helping them sustain through the crisis rather than worry about their jobs.

TCF’s Youth-led Appeal

TCF alumni came together as a uniformed youth movement on the frontlines of our COVID-19 Response. They were on the ground for almost two months including the holy month of Ramadan. They led our efforts to provide cash-based relief to more than 45,500 households in need, in 250 TCF communities all over the country. They surveyed, collected data and facilitated economic relief for hundreds of deserving families. I believe this is something we can all take pride in; our 25-year-old movement to empower children and youth of this country is now blooming!

TV – a Medium for Teaching

In Pakistan, it is unfortunate that no quality and culturally relevant programming is available for children on local TV channels. When schools across the country abruptly closed, we were able to produce a TV show called “Ilm ka Aangan” for early learners on PTV Teleschool – a new education channel initiated by the Ministry of Federal Education. TCF took its curriculum for early childhood education to TV. We produced a show that engaged children through theme-based videos, activities, storytelling sessions and much more. So far, we have produced 18 episodes of the show, which is now being aired on 3 private TV channels as well, receiving a total of 6 million+ views every week. This project has opened doors for us to explore TV as a medium for teaching and learning, expanding our work and impact.

TCF Alumni – First Generation College Students

As our bright young students graduate from TCF schools across the country, many take a road their families never thought possible. Right now, 100% of our alumni who get enrolled in undergraduate colleges are first-generation learners - the first in their family to go to college! It is college admission season now in Pakistan. Hundreds of our alumni are making their way into some of the best colleges and universities of the country - including LUMS, IBA, NED, GIKI, FAST, DOW Medical University, IoBM, and many others. While this uncharted territory comes with a range of emotions, for all of them, it means the chance to change the trajectory of their entire families’ and communities’ future. Together, we have empowered them to achieve their dreams.

We’re Ready to Reopen

As the COVID-19 situation continues to improve in Pakistan, we are preparing to reopen all TCF schools in September 2020. Our teams are working tirelessly to address challenges such as: increased school dropouts, learning losses, socio-emotional impact of the pandemic on students and staff as well as their health and safety. Schools will be reopened in 2 phases. Phase 1 is characterized by a strict emphasis on personal hygiene, sanitization of premises, social distancing, and ability to cope with emergency situations. Only 50% students will attend school each day of the school week.

Phase 2 will only begin after the risk level for COVID-19 is reduced. All children will be allowed to attend school together based on government and WHO recommendations. We will continue to follow our protocols on hygiene from Phase 1. If health risks return, schools will return to Phase 1 protocols and guidelines.

Innovation at the core of what we do

The COVID-19 pandemic turned out to be much more than a health crisis. It did not only disrupt social and economic activities, but also severely impacted emotional wellbeing of millions across the globe. Lives of TCF principals, teachers, students and their parents have also been deeply impacted as a result of this crisis. As we reopen, we are committing ourselves to realign our priorities and ensure an adequate balance between academic learning and mental health & wellbeing with the intention of fostering a sense of safety, hope, compassion and belonging. Some of our wellbeing strategies include – structured time for students to immerse themselves in engaging discussions and activities within which there will be a conscious effort to weave in cognitive, social and emotional skills, gratitude and mindfulness. We will hold regular ‘Staff Circles,’ for our faculty members focused on open conversations on feelings, concerns and experiences, providing a collaborative space for emotional peer support.

As I close, I want to thank each and every member of the TCF family – our donors, volunteers, supporters, faculty, non-faculty and office staff who stood by us in this difficult time and continued to support us in their capacities. Thank you for supporting the dreams of these children under our care and enabling them to be agents of positive change for their families and communities at large.

Directors’ Report

The Directors of The Citizens Foundation (TCF) are pleased to present to you the Annual Report along with the organisation's audited financial statements for the year ended June 30, 2020.

Pakistan’s Macroeconomic Situation

The present government, through readjustments in fiscal and monetary policies, has been trying to stabilise the economic environment of the country. As the new fiscal year began, the stabilisation process gained momentum with the commencement of the IMF supported economic reforms programme in July 2019. In months that followed, the economy showed some early signs of recovery.

However, the COVID-19 outbreak in February 2020 brought all economic activities to a near-halt. The country was placed under lockdown. The closure of non-essential businesses had a significant impact on wholesale and retail trade. The drop in domestic and global demand also compounded the strains on the industrial sector. The country’s main industrial sector – textile and apparel - was highly exposed to COVID-19-related disruptions due to its high labour-intensity and cancellation of export orders. According to a survey conducted by Gallup Pakistan, over 54% of Pakistanis faced pay cuts or layoffs due to the pandemic, which adversely impacted their household income.

In the last few months, as the spread of infections has eased in the country, businesses have started to reopen. However, the road to recovery will be much longer. According to the Pakistan Economic Survey 2019-20, the country’s GDP is expected to contract by 3% in FY2020. The fiscal deficit is also projected to go as high as 8.1% of the GDP. The government is fully committed to make way for new investments in the manufacturing sector to boost exports, reorganise its tax system and energy sector and to improve the overall business environment. The IMF in its report - “Policy Actions Taken by Countries” has reviewed various steps taken by Pakistan’s government since March to deal with the Covid-19 crisis and has forecasted a gradual economic recovery in the fiscal year 2021 as the country reopens.

The Effect of an Economic Crisis on Educational Outcomes

The COVID-19 pandemic affected educational systems worldwide. Schools, colleges and universities closed; and by early April 2020, according to a report published by Save the Children International, 1.6 billion learners globally had their education disrupted. In Pakistan, almost 46 million learners and 1.5 million teachers employed nationwide were impacted by the pandemic. Prolonged closures of educational institutions highlighted inequalities in education, digital divide and gaps in distance and remote learning. The same report from Save the Children states that Pakistan is one of 12 countries ‘at extreme risk’ of increased school dropouts and wider learning inequalities. According to the Pakistan Telecommunication Authority, nearly 98% of 50 million school-aged children in Pakistan don’t have regular access to digital devices and internet. School shutdowns have caused disproportionate learning losses for less privileged students—compounding existing gaps. This could have long-term effects on these children's education, their economic wellbeing and on the economy as a whole.

Amidst these challenges, TCF remains committed to its mission of educating the most vulnerable children of Pakistan. Essential guidelines and protocols are being prepared to enable the safe reopening of TCF Schools from September 2020, ensuring health, safety, and wellbeing of our students, principals and teachers as they return to school.

Our Response to COVID-19

During this unprecedented time, TCF launched a Rs 500 million COVID-19 Response Appeal on April 1, 2020, to battle the devastating impact of the coronavirus crisis. With the support of our donors, we mobilised substantial cash-based relief in the most vulnerable communities where we operate. More than 700 TCF alumni and teachers led this effort and reached out to 45,000+ households in more than 250 communities across the country. Building on this, we also extended support to 33 hospitals and healthcare centres in 18 towns and cities of the country, providing a total of 20,000 personal protection (PPE) kits urgently needed for healthcare workers to save lives. By the end of June 2020, a total of Rs 114 million was spent on these initiatives.

To ensure continuity of the learning and engagement for millions of children who were forced to stay out of school, TCF made its first foray into TV-based edutainment.

We went on to produce “Ilm ka Aangan” – a TV show for early learners which is being aired across 4 TV channels of the country, receiving 6 million+ views every week. We also started publishing a magazine by the same name “Ilm ka Angan”, which is being printed and dispatched every fortnight in Urdu and Sindhi languages to our communities. TCF plans to continue building on these initiatives in the coming year as well.

Directors

At the date of this report, the Directors of TCF are:

Non-Executive Directors

Mr Ahsan
M. Saleem
Mr Ateed Riaz
Ms Farzana Zulqarnain
Mr Imtiaz Sultanali Dossa
Mr Ishaque Noor
Mr Mushtaq K. Chhapra
Ms Nilofer Saeed
Mr Rashid Abdulla
Mr Riyaz Chinoy
Gen. (R) Sabeeh Qamar uz Zaman
Mr. Shahbaz Yasin Malik

Executive Director

Syed Asaad Ayub Ahmad, President and Chief Executive Officer

Composition of the Board of Directors

The total number of Directors is 12 and male to female ratio 10:2

Foundation’s Principal Activities

The Foundation is principally engaged in establishing schools across Pakistan for the less privileged children, giving them support and opportunities they deserve to become productive global citizens. The Foundation received funds from a broad cross-section of society within and outside Pakistan to support operations of its primary and secondary schools.

Operational Performance & Results:

TCF is currently operating a network of 1,652 school units, including 299 government schools with 266,000 students across the country.

Read report from the Chairman

Review Report by the Chairman

Dear Stakeholders,

On behalf of the Board, I am pleased to present my review report for the year. The report highlights the performance of the Board and its effectiveness in achieving the organization’s aims and objectives for the year ended June 30th, 2020.

An Unprecedented Challenge

The global pandemic posed challenges of an unparalleled nature this year. The social, economic and health implications of coronavirus have been witnessed by everyone, everywhere across the world. The Citizens Foundation (TCF) faced a number of critical challenges as a result of this pandemic, including school closures all across Pakistan - causing a massive disruption in education, especially for children living in impoverished areas of the country.

Amidst this uncertainty, TCF remained resilient and committed in its mission to educate. We continued to move forward towards our vision, through innovative and dynamic strategies whilst tackling the challenges brought about by the pandemic.

Board’s Performance and Effectiveness

The Citizens Foundation (TCF) has a strong governance framework, supportive of an effective and prudent management of business matters, which has helped manage the emanating risks and turbulence of the COVID-19 crisis.

The Board committees continue to work with a great measure of proficiency. The Audit Committee has focused, in particular, on the strengthening of internal audit systems and on ensuring risk-based management, particularly those risks associated with the COVID-19 crisis. This is of particular significance as this situation is unique and unprecedented - affecting the organization’s core and other operations.

The Risk & Compliance Committee also met during the year to discuss strategies for the identification and mitigation of the key risks throughout the organization, with special emphasis on risks associated with theCOVID-19 situation.
The Human Resource and Remuneration Committee has ensured that HR policies regarding performance management, staffing, compensation and benefits remain market-driven and are aligned to the organization’s performance and stakeholders’ interests with appropriate adjustments due to the pandemic.

The Investment Management Committee, headed by an industry expert, continues to perform well – enabling safe and steady returns. The fast changing economic realities, heightened amid COVID-19, have been strategically managed under the recommendations of the Committee.

On the financial front, costs, operations and cash flow management have remained key priorities. TCF has managed to remain stable amid this crisis and has moved forward on its growth path.

The Board has reviewed the Annual Report and Financial Statements, and is pleased to confirm that in its view, the report and financial statements taken as a whole are fair, balanced and understandable.

The Board carries out a review of its effectiveness and performance each year after the closure of the Fiscal year. Overall effectiveness of the Board was assessed as satisfactory in achieving the Foundation’s objectives.

The overall assessment by the Board was based on an evaluation of the following integral components:

Vision, mission and values:

The Board members are familiar with the vision, mission and values, which are supported by them and deemed appropriate for the Foundation.

Engagement in strategic planning:

The Board has a clear understanding of the stakeholders whom the organization is accountable to, including students, donors, grantors, employees, vendors and the society in general. The Board has the strategic vision of how the organization should be evolving over the next ten years and is steadily inching towards progress with due tracking.

Formulation of policies:

The Board has established policies that cover all essential areas of the Board’s responsibilities and operations of the Foundation.

Monitoring the Foundation’s operating activities:

The Board is knowledgeable about the Foundation’s operations, and has an effective process for tracking various programmes and activities under certain parameters. Adequacy of

financial resources management:

The Board is procedures. knowledgeable about the key aspects of managing the financial resources of the Foundation and provides appropriate direction and oversight on a timely basis.

Provide effective fiscal oversight:

The Board ensures that the budget reflects the priorities established in the annual strategic plan and it complies with regulations governing the audit or independent examination of financial statements. The Board considers all the recommendations made in the management letter.

Act as a responsible employer:

The Board has created necessary policies in order to ensure that the organization behaves in an equitable and legal manner towards staff, contractors, vendors and any other individual working on its behalf. Relationship between Board and Staff:

Roles and Responsibilities of the Board and management staff are clearly defined and understood and a climate of mutual trust and respect exists between the Board and the Management.

Foundation’s Public Image:

The Board members promote positive image of the Foundation in their respective circles.

Review of the CEO’s performance:

The Board assesses the performance of the CEO in a fair and systematic manner and ensures that CEO’s remuneration is aligned with the Foundation’s performance, stakeholders’ interest and the sustainable success.

Board Structure and Dynamics:

The size and composition of the Board is adequate and consists of a good mix of new and old directors that govern Board procedures. The engagement is active and the Board meets frequently enough to adequately discharge its responsibilities.

The strategic direction of the organization for the long term is clear and appropriate. We remain committed to being accountable to all our stakeholders - donors, volunteers, employees, supporters, regulators and most of all our students who are central to our purpose - in a fair and transparent way.

While this dynamic challenge stands in our way, we will continue to work towards our mission. I want to express my gratitude to all the stakeholders across the globe for their continued and unflinching support towards our cause.

Your belief in education will enable our students to become agents of positive change, and take Pakistan to greater heights. Ateed Riaz Chairman/Director .

Students' socio-emotional wellbeing

The beginning and end of each day is dedicated to open conversation and reflection. Structured 40-minute periods have also been introduced throughout the week to improve students’ physical and mental wellbeing.

Staff Circles

Staff circles are being conducted to provide staff a collaborative space for social and emotional peer support, problem solving and discussions on self-care.

School-Community Relationship

TCF staff is actively engaging with parents, encouraging them to ensure continuity in their child’s learning.

An Enabling Policy Environment

Staff has more clarity in policy matters and the burden of routine tasks has been reduced so they can focus on bridging the learning gap and on the child’s wellbeing.

Social Distancing

We are observing social distancing in our schools by reducing the class size, discontinuing assemblies, keeping students 2 meters apart, and limiting student interaction.

Cleaning & Hygiene

We are encouraging students to wash their hands regularly with soap and water. Frequent cleaning of floors and surfaces in schools is also being observed.

Monitoring Health

Daily health checks are being conducted across our schools. Prompt action will be taken upon identification of students showing symptoms.

Educating Communities

Daily health checks are being conducted across our schools. Prompt action will be taken upon identification of students showing symptoms.

ILM ka Aangan TV SHOW

In April 2020, TCF made its first foray in TV-based edutainment! “Ilm ka Aangan” episodes engaged children through theme-based videos, activities, storytelling sessions by renowned actor Sania Saeed, physical exercise segments and more. 6 million viewers across 4 channels tuned in every week!

ILM ka Aangan Magazine

The edutainment magazine, also called Ilm ka Aangan, is for primary and secondary school learners. 182,000+ copies are printed every fortnight in Urdu and Sindhi languages. 96+ branches of 21 other low-cost school systems are using TCF’s magazine to help their students learn outside the classroom.

ILM Ujala

To keep students learning at home, we launched community-based study groups with typically 5 learners and one tutor at a home or community space. We now have 1,796 active volunteers or tutors running these study groups for 9th and 10th class TCF students.

Sustaining TCF Communities

In April, under TCF’s COVID-19 Response appeal, we provided cash-based relief to struggling families in our most vulnerable school communities. Thousands of TCF teachers and alumni led this effort.

Supporting Frontline Healthcare Workers

Under its COVID-19 Response Appeal, TCF supported frontline healthcare professionals and volunteers with protective gear they urgently needed.

Sustaining our Principals & Teachers

TCF principals and teachers are the backbone of our education system. We retained and supported them during the crisis so that they can help children transition back into schools and close the learning gaps accrued during the shutdown.

More children will be forced into full-time jobs

More children, particularly boys, will be forced to work full time to help families cope with income losses during the crisis.

More girls will be forced into early marriage

Loss of income will drive more parents to marry off their young daughters to reduce their economic burden.

Learning inequality will increase

The digital divide in Pakistan has resulted in severe learning losses for marginalized students and may lead them to drop out of the education system forever.