The Aga Khan University announced today the results of a landmark study which found that AKU has an annual economic impact in Pakistan of Rs 103 billion, or US$ 1 billion, supporting 42,000 jobs. The study also reports that AKU’s spending has a multiplier effect, with every rupee of its direct gross value added generating Rs 7.3 in economic benefits.
The study is the work of a team of economists from Centennial Group International, a U.S.-based consulting firm, many of them for
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mer senior officials at the World Bank. It is the first-ever study of AKU’s economic impact, and is believed to be the first comprehensive economic impact study of a Pakistani university.
In a key finding, the study reports that AKU is improving the quality of health care and education for the public at large as a pioneer and an influential role model that sparks change within other institutions. The authors call the University “a national innovator and a powerhouse for quality,” and “a nationwide role model for high-quality tertiary education and medical care.”
“Too often, the significant contribution that a leading university makes to the economy is overlooked,” said AKU President and CEO Firoz Rasul. “This study should change that, with its rigorous analysis and its finding that AKU has an annual economic impact of Rs 103 billion, or US$ 1 billion. What’s more, the study demonstrates that AKU has a major impact as a leader that improves quality of life in Pakistan – whether by raising standards in health care and education, empowering women or conducting cutting-edge research.”
AKU generates its economic impact in a variety of ways. By providing high-quality education, it increases the earning power of its alumni. By providing outstanding health care to 1.3 million individuals annually, it keeps people healthy and productive. And as a major purchaser of goods and services, it generates revenues for businesses and jobs for people across the country.
Individuals from government, the diplomatic corps, international funding agencies and civil society joined the University at the launch of the report today in Islamabad, including the Chief Guest, Professor Ahsan Iqbal, Minister for Interior and for Planning, Development & Reform.
“This economic impact study by the Aga Khan University is a trendsetter for our education sector,” Minister Iqbal said. “AKU has continued its reputation of being a model of excellence in higher education by showing us another way to assess, evaluate and hold accountable our higher education institutions.”
Dr Ishrat Husain served as an adviser to the report’s authors. “The study is an admirably rigorous analysis of the difference that AKU has made in Pakistan,” said Dr Husain, former Governor of the State Bank of Pakistan, former AKU Trustee and former Dean and Director of the Institute of Business Administration.
Centennial’s study analysed AKU’s economic impact in 2015, the latest year for which data was available when the authors began their work in 2016.
Most university economic impact studies focus only on quantifiable impacts that can be expressed in monetary terms. Centennial’s report is different. It also highlights the public benefits the University creates for society. Though these are not assigned a monetary value, the authors state they are likely the most important contribution of AKU to Pakistan.
Examples of the numerous ways in which AKU produces public benefits include:
Encouraging Excellence
As a pioneer in achieving international quality standards, the Aga Khan University Hospital has set an example that has helped to raise the quality of care at other hospitals. It was Pakistan’s first hospital accredited by the U.S.-based Joint Commission International and its clinical laboratory was the country’s first accredited by the College of American Pathologists of the U.S.
Empowering Women
AKU transformed the nursing profession, creating career opportunities for countless women. Moreover, two-thirds of AKU students, and half of AKU senior faculty members, are women.
Generating Knowledge
Seven of Pakistan’s top 10 health researchers are AKU faculty, according to the Pakistan Council for Science and Technology. The University’s health research is helping to save the lives of women and children living in poverty. AKU is the only university in Pakistan that is researching and implementing life-saving initiatives on a truly national scale. It also has influenced health policy and action at the global level and in several low- and middle-income countries.
Partnering with Government
AKU’s Institute for Educational Development and its Examination Board – both the first private institutions of their kind in Pakistan – have provided valuable assistance to government officials seeking to improve the education system. Over five years, the University will be working with government health providers to improve health for 11.5 million women and children in Sindh, Punjab and Balochistan through its Umeed-e-Nau (New Hope) project, funded by the Bill & Melinda Gates Foundation.
Making Higher Education Accessible
The University accepts students from across Pakistan based on merit, not ability to pay. To ensure AKU is accessible to all, it provides 60 per cent of students with financial assistance or tuition fee remission.
Making Health Care Affordable
In 2017, approximately 700,000 low-income patients were able to access high-quality health care at AKU facilities, thanks to financial support from the University and donors. That is a significant increase from 488,000 in 2015.
“AKU has sought to be an innovator and exemplar throughout its existence,” President Rasul said. “But we do not forge ahead because we wish to stand alone. Rather, we do so in order to encourage others to join us in raising standards, generating knowledge, contributing to the economy and creating opportunities for all Pakistanis.”
