AKU supporting 42,000 jobs with economic impact of Rs103b

Islamabad: The Aga Khan University (AKU) has an annual economic impact in Pakistan of Rs103 billion ($1 billion), supporting 42,000 jobs. The university’s spending also has a multiplier effect, with every rupee of its direct gross value added generating Rs7.3 in economic benefits.

These data were shared late Wednesday night at an event marking the release of the first-ever study of AKU’s economic impact. Individuals from government, the diplomatic corps, international funding agencies and civil society joined the University at the launch of the report. Minister for Interior and for Planning, Development and Reform Ahsan Iqbal was the chief guest on the occasion.

“This economic impact study is a trendsetter for our education sector,” Ahsan 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.”

Produced by a team of economists from Centennial Group International, a US-based consulting firm, the study is believed to be the first comprehensive economic impact study of a Pakistani university.

The study reports AKU as improving the quality of health care and education for the public at large as a pioneer 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 Rs103 billion.”

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 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.

Former Governor of the State Bank of Pakistan 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. Ishrat, who is also former AKU Trustee and former Dean and Director of the Institute of Business Administration.

Centennial’s study analyzed 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 aspects such as encouraging excellence. As a pioneer in achieving international quality standards, the AKU Hospital has set an example that has helped raise the quality of care at other hospitals. It was Pakistan’s first hospital accredited by the US-based Joint Commission International and its clinical laboratory was the country’s first accredited by the College of American Pathologists of the US.

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. 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.

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.

The University accepts students from across Pakistan based on merit, not ability to pay. To ensure AKU is accessible to all, it provides 60 percent of students with financial assistance or tuition fee remission.

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.