Profit E-Magazine Issue 50 by Profit (by PT)

10 Weekly Roundup 12 Eighteen: How an Egyptian company is building a new $2 billion Islamabad suburb

16 16 Naya Pakistan Housing: pipe dream or bold vision? 20 Global MBA rankings: a Pakistani perspective

36 For a food-loving city, Asad Sheikh provides a much-need curator 39 ACCA’s bid for an educated Pakistan?

Executive Editor: Babar Nizami l Managing Editor: Farooq Tirmizi l Joint Editor: Yousaf Nizami Reporters: Arshad Hussain l Muhammad Faran Bukhari l Syeda Masooma l Ghulam Abbass l Ahmad Ahmadani Shehzad Paracha l Director Marketing: Zahid Ali l Regional Heads of Marketing: Muddasir Alam (Khi) l Zulﬁqar Butt (Lhr) Mudassir Iqbal (Isl) l Layout: Rizwan Ahmad l Illustrator: ZEB l Photographers: Zubair Mehfooz & Imran Gillani l Publishing Editor: Arif Nizami l Business, Economic & Financial news by 'Pakistan Today' Contact: proﬁt@pakistantoday.com.pk

CONTENTS

welcome

THE EVOLUTION OF PAKISTANI BUSINESS EDUCATION Pakistanis, particularly graduates of the Institute of Business Administration (IBA) in Karachi, are fond of pointing out that IBA was the first business school in Asia and one of the first business schools outside of North America. While that is true, the fact remains that business education in Pakistan remained largely stagnant from the time IBA was formed in 1955. True, there have been some changes, including the introduction of a true professional degree-style MBA program at the Lahore University of Management Sciences (LUMS) in 1984, which has led IBA to reformat its MBA to follow suit. But the fact remains that if a Pakistani professional wants to advance their career in Corporate Pakistan, their menu of options is rather limited. In this issue of Profit, we examine that menu of options and expanded the list to include all options that are feasible for a young Pakistani professional who wishes to have a successful career and does not have family money to finance an expensive education abroad. We have retooled the global rankings of MBA programs to suit a Pakistani audience and gone through an extensive analysis of just which programs make the most sense for Pakistani profession-

FROM THE MANAGING EDITOR

als to pursue. This is the start of what we hope will be an annual ranking of global business schools from a Pakistani perspective. Unfortunately, we were not able to collect much data on Pakistani business schools themselves, with the exception of IBA, but intend to include far more Pakistani programs from our next issue onwards. We also examine in this edition the state of accounting education in Pakistan and how the ACCA is seeking to break the educational monopoly of the Institute of Chartered Accountants of Pakistan (ICAP), a development that we see as largely positive for the development of corporate governance institutions in the country. These are exciting times in the world of business education, and we hope to offer in this issue some information that young Pakistani professionals can utilize to their advantage.

Farooq Tirmizi Managing Editor

Finance Minister Asad Umar

QUOTE

“Pakistan will bridge financing gap of $12 billion through loans being sought from foreign institutions and banks”

“Gwadar will be economic and business in future; it will have a positive impact on development of Pakistan” Senate Chairman Muhammad Sadiq Sanjrani

Rs193b

is the revised allocation for the China-Pakistan Economic Corridor (CPEC) FY19 against the previous allocation of Rs191 billion, according to official documents. The newly installed Pakistan Tehreek-e-Insaf government has cancelled all the unapproved projects of CPEC from the list of public sector development programme (PSDP) for FY19. Projects that have faced the axe include Zhob-Kuchlak road, Shandur-Chitral road including land acquisition and upgradation of 50 to 300-bed hospital at Gwadar, construction of the northern bypass. Also, Gwadar smart environment, sanitation system and landfill, land acquisition for Gwadar port master plan under Maritime Affairs Division and feasibility study (PC-II) for laying of new rail from Havelian to Pakistan-China border has been axed. In the original budget announced by the previous PML-N government for FY19, the CPEC projects allocation was earmarked at Rs172 billion as stated by the finance ministry. Although, the planning ministry had estimated Rs191 billion in the green PSDP book for the current financial year. According to Secretary Ministry of Planning Zafar Hasan, the rationalization exercise of PSDP had plugged the gaps between amounts allocated by the finance ministry in the pink book and the planning ministry in green book for FY19.

Rs175m

was the price paid by Hascol Petroleum to acquire liquefied petroleum gas (LPG) plant from Marshal Gas (Private) Limited. In a notification sent to the Pakistan Stock Exchange (PSX), Hascol Petroleum Limited said the Oil and Gas Regulatory Authority (Ogra) had granted its approval or no-objection certificate (NOC) for the transfer of the LPG plant and assets with the license to operate the LPG business. Ogra has permitted Hascol Petroleum to operate the LPG business and it intends to commence its operations immediately upon receipt of the NOC from the Competition Commission of Pakistan (CCoP). Previously, Hascol had informed the PSX in July, it would be acquiring Marshal Gas (Private Limited) and it’s LPG plants for Rs175 million. And in February 2018, Hascol had entered into a joint operations agreement with Total Parco Pakistan Limited, with latter purchasing oil storage assets worth Rs400 million. In March last year, Hascol Petroleum in partnership with Vitol formed a new company called VAS LNG (Private) Limited that will deal with the activities relating to the LNG sector.

15pc

devaluation of the rupee and an increase in interest was recommended by the International Monetary Fund (IMF) delegation visiting Pakistan. And the IMF has expressed worries that the government isn’t moving quickly to address the macroeconomic imbalances, endangering the country’s economic growth. In the last leg of the staff-level talks, the IMF had determined budget deficit may increase to 5.5 percent of GDP or Rs2.1 trillion, even after the additional revenue measures introduced via the mini-budget, said sources. The major bone of contention between the IMF and Pakistan was on the degree of currency depreciation, increase in interest rate and effect of recent budgetary measures, sources said. According to sources, the IMF felt the 8.5 percent interest rate was insufficient and should raise it to 11 percent to ward off inflationary pressure and reduce the current account deficit (CAD). IMF and Pakistan disagree over the exchange rate parity, as the State Bank of Pakistan (SBP) believes the exchange rate of Rs137 to a US dollar by end of the current financial year 2018-19 would be enough to address the challenge. However, the IMF’s determination is to the contrary and sources revealed that they wanted rupee to be traded above Rs145 to a dollar.

“There is a significant forex exposure to profit margins of oil marketing firms; they should be protected from that” Shell Pakistan, Chief Executive Officer Haroon Rashid

QUOTE

$100m

of open credit facility has been extended by Azerbaijan to Pakistan for oil imports without any sovereign guarantees. A senior government official said at the present juncture the offer extended by Azerbaijan would be of some value to Pakistan. Massive pressure has been ratcheting up on the balance of payments and Pakistan will commence talks over a bailout package with the International Monetary Fund (IMF). Currently, the major oil suppliers to Pakistan are Saudi Arabia, United Arab Emirates (UAE) and Kuwait and any deal it clinches with Azerbaijan will reduce its excessive dependence on them. Pakistan has nominated Pakistan State Oil (PSO) and Azerbaijan has designated state-owned Socar for signing a commercial deal.

$30b

has been projected to be Pakistan’s gross external financing needs for fiscal year 2019, according to Moody’s. According to the rating agency, the current account deficit for FY19 would total 4.6% of GDP which would be slightly narrower than the 5.8 percent deficit clocked in FY18. Moreover, despite the central bank depreciating the Pakistani rupee by around 25% against the greenback and increasing policy rate by a cumulative 275 basis points since December last year and fiscal authorities implementing one-off measures such as a tax amnesty scheme to incentivize capital repatriation, the current-account deficit remains wide. It said an International Monetary Fund (IMF) programme would be credit positive for Pakistan because access to a cheap, stable source of external financing would give immediate assistance to the government’s external financing requirements. However, it cautioned that external and fiscal challenges remain, especially in light of investments, imports and external borrowing related to projects under the China-Pakistan Economic Corridor (CPEC).

76.5pc

increase in jewellery export has been recorded in the first two months of financial year 2018-19. The jewellery export rose to $1.054 million in July-August 2018-19 against the export of $0.597 million recorded during July-August 2017-18, according to the latest data of Pakistan Bureau of Statistics (PBS). On the other hand, the export of gems witnessed a slight decrease of 0.35 percent as it declined to $0.571 million in the period under review from $0.573 million in same period of the preceding year. On monthly and yearly basis, the export of jewellery was recorded at $0.242 million in August as compared to the export of $0.812 million in July and 0.305 million in August 2017, thus recording a decline of 70 percent and 20 percent respectively.

7.542pc

record decline was witnessed in the value of the rupee against the dollar on October 9th and closed at Rs133.64 in inter-bank trading. he rupee weakened by 10.24 percent against the dollar in the inter-bank market touching an all-time low of Rs139. According to the central bank, this movement broadly reflects the current account dynamics and also the demand-supply gap in the foreign exchange market. It said the increase in oil import bill due to rising global oil prices had exerted pressure in the foreign exchange market. The central bank believes that this adjustment in the exchange rate along with the lagged impact of recent hikes in the policy rate, and other policy measures to contain imports would correct the imbalances in the external account. the rupee shot up to Rs134 against the dollar in the inter-bank market before touching a record high of Rs139 before falling to Rs133 against the greenback.

10pc

stake has been acquired by China Machinery Engineering Corporation (CMEC) in Hubco’s subsidiary Thar Energy Limited (TEL) for $3.93 million. HPCL had setup TEL for establishing a 330-megawatts of minemouth lignite-fired power plant and had signed an agreement with Fauji Fertilizer Company Limited (FFCL) and CMEC Tel Power Investments Limited (CMEC Dubai) for an equity investment of 30 percent and 10 percent respectively. HPCL’s subsidiary TEL contracted China Development Bank as the lead arranger for overseas funding from China and Habib Bank Limited (HBL) as the lead arranger for domestic financing. The coalfired power project is expected to commercial operation date by March 31st, 2021. Hubco presently produces 1,601MW via its three power plants in Narowal, Hub and Azad Kashmir.

BRIEFING

EIGHTEEN

HOW AN EGYPTIAN COMPANY IS BUILDING A NEW $2 BILLION ISLAMABAD SUBURB

Orascomâ&#x20AC;&#x2122;s real estate arm believes there is a large enough market for Pakistanis who want to live the suburban life around the nationâ&#x20AC;&#x2122;s capital 12

By Ghulam Abbas

AREK Hamdy knows his way around a construction site. The Cairo native is an experienced electrical engineer with degrees from Cairo University and the Sorbonne in Paris, and nearly three decades of experience in engineering and managing construction projects around the world. He has supervised the construction of airports, utilities, as well as a host of commercial and real estate projects around

the world. But now, his job is even more ambitious: to guide the construction of an entirely new city: a $2 billion real estate development that will effectively become a new suburb of Islamabad. Hamdy works as the CEO of Eighteen, an ambitious real estate project that will be the Pakistan flagship project for Orascom Construction Industries, a publicly listed Egyptian construction company owned by the Sawiris family, the richest family in Egypt. The project is a joint venture with two Pakistani partners: the Saif

Group, the industrial and real estate conglomerate owned by the Saifullah Khan family of politicians and businessmen, and the Kohistan Group, an Islamabad-based conglomerate. Collaboration between the Khans of Marwat and the Sawiris goes back over 15 years, when the Sawiris bought out Motorola’s share in Mobilink and became joint venture partners with the Khans in what by then had become (and remains) Pakistan’s largest mobile telecommunications company. “The project has been named Eighteen after the ‘Eighteenth district’ of the Twin Cities [of Rawalpindi and Islamabad],” said Hamdy, in an interview with Profit. “The development is about 10 kilometers from the new Islamabad Airport, and 15 kilometers from the heart of downtown Islamabad. It’s on main Kashmir Highway, which makes it a wonderful location.” The company appears to be committed to making helping the project become successful, as is evident by their hiring of Hamdy, a highly respective executive who has previously served as the general manager of Schreder Lighting in Belgium, the managing director of Technolite in France, and the managing director for IMS, a subsidiary of the M.A. Kharafi Group of Kuwait. In late 2000, Hamdy was appointed the CEO to lead the development of Hail Economic City (KSA) for ALMAL Investment Company. He has also been involved with city planning projects in Glasgow (Scotland), working directly with the UK’s Built Environment Foundation. For a number of years, he has been on board of the His Royal Highness Prince Charles Charities Foundation, as a special project director for the Middle East. Hamdy was born in Cairo, Egypt and obtained a degree in electrical engineering from Cairo University followed by a post-graduate certificate with Sheffield Hallam University and an MBA from the Sorbonne in Paris. He is fluent in English, French, Italian and Arabic. The vision for Eighteen appears to be the construction of a large suburban development focused on people who want to live close enough to Islamabad to be able to commute to work there every day, but also want to come home to a luxurious, green development, preferably with close proximi-

ty to a full 18-hole golf course. The 600-acre development will only have about 96 acres of built up area, or about 16% of the total, but over 210 acres (or about 35% of the total size of the development) will be dedicated to a full 18-hole golf course. The developers are assuming that there are enough people who either currently live, or want to live near Islamabad who love golf enough to want to be able to play a round of golf every day and are willing to base their decision on where to live on the basis of proximity to a gold course. The residential part of the complex will have 2,200 housing units, with the houses varying in size from 20 square yards to 1,000 square yards. There will also be apartments, ranging from studios to four-bedroom units. Building a large development in Pakistan, however, comes with its own challenges. Developers cannot expect the government to provide the full array of infrastructure that is often taken for granted in more developed economies, though in the case of this development, the government appears to have agreed to provide at least some assistance with infrastructure. “The government has granted a cloverleaf interchange at the old Islamabad toll plaza on the motorway link road from our development,” said Hamdy. “This cloverleaf will be built within two to three years and will divert the traffic onto a very nice service road, 56-metres wide allowing easy access to visitors and residents.” Eighteen has also received approval for a gas connection for the development from the state-owned gas utility company, Sui Northern Gas Pipelines (SNGP). Other parts of the infrastructure, however, require investment on the part of the developers themselves. Most notably, for instance, the development has to create its own 32-megawatt power plant to serve the community, owing to the lack of reliable electricity supply in most cities in Pakistan, barring perhaps Karachi. Yet, ironically, in order to build their own power plant, Eighteen needed to get permission from the local state-owned electric utility company, the Islamabad Electric Supply Company (IESCO). In addition, the developers had to put in their own fiber optic cable for telephone and internet connec-

REAL ESTATE

tions. And, critically in a country with a severe water shortage, they have had to invest in building their own water treatment plant to handle both the development’s water supply as well as sewerage system. For water supply, the development will be dependent on ground water at a time when the water table in the Islamabad metropolitan area is already severely depleted. Hamdy, however, believes they have a plan that could work. “The twin cities receive a metre of rain per year and with our land size sitting at two point seven million square yards, the annual rain reserve would therefore stand at two point seven billion litres of water,” said Hamdy. “We

will be building dams and utilising reservoirs in addition to many water wells. The irrigation system, on the other hand, is being designed by a renowned international based firm, Rembrandt.” And in a bid to address a concern that is somewhat peculiar to a developing economy like Pakistan, the Eighteen management is keen to highlight the fact that buyers in the development will receive the title deed to their property, an attraction considering the fact that in most urban areas of Pakistan, land tends to be traded on long-term leases, not outright ownership as represented by a title deed. The development is not entirely residential, however. In addition to the

COLLABORATION BETWEEN THE KHANS OF MARWAT AND THE SAWIRIS GOES BACK OVER 15 YEARS, WHEN THE SAWIRIS BOUGHT OUT MOTOROLA’S SHARE IN MOBILINK AND BECAME JOINT VENTURE PARTNERS WITH THE KHANS IN WHAT BY THEN HAD BECOME (AND REMAINS) PAKISTAN’S LARGEST MOBILE TELECOMMUNICATIONS COMPANY 14

golf course and the houses and apartments, there will also be a retail area called the Square, in addition to an office area that will provide 13 buildings for office space for companies and other organisations that want to based their operations in a quieter setting than the Blue Area in Islamabad. “We did our soft launch in December 2017, after receiving an NOC [no-objection certificate] from the RDA [Rawalpindi Development Authority] in November 2017,” said Hamdy. “March 2018 marked our commercial launch, earthworks were initiated in February 2018, and the construction package was awarded in May 2018. The complete delivery and project lines stand within six years. The first phase will be completed in three and a half years with the payment plan standing at four years. This basically shows our commitment to our customers and the willingness for us to deliver on our promise. By the first quarter of 2019, stakeholders will start seeing grey structures on-site and that is when our customers will start seeing higher returns on their investment.”

REAL ESTATE

Experts weigh in on the feasibility of the government’s target of building 5 million homes in the country over the next five years

By Muhammad Faran Bukhari

erhaps one of the most optimistic targets that Pakistan Tehreek-e-Insaf (PTI) set for itself when it launched its 100-day plan before the July 25 elections pertained to the housing sector. While only 4.9 million houses have been built in the first 71 years of Pakistan’s existence, the current government plans to build 5 million in the next 5 years, a task that seems doable to some and impossible to others. It is not as though the proposal is not a worthy goal. Pakistan does have a severe housing shortage. The 2017 census numbers suggest that Pakistan’s population has reached 207 million, growing at an average of 2.4% annually since 1998. “It is estimated that annual demand for new homes is approximately 700,000 a year, whereas, only about half of this demand is met. Overall, the housing deficit is estimated at 10 million units and growing,” states a report published by the State Bank of Pakistan (SBP). However, the problem is not the shortage of houses altogether, but

shortage of houses at affordable rates. Housing in the Pakistani context seems to have more to do with pricing then just a simple demand and supply gap. For example, you can easily go and buy a house worth Rs10 million, if you have the finances to do so and there is ample supply of houses in this segment. The real problem is that not a lot of people have such buying power and for them there are few cheaper alternatives. According to the State Bank of Pakistan, low-cost housing includes property valuing up to Rs2.5 million. The gap between demand and supply widens as one moves towards low cost housing and the government, with the Naya Pakistan Housing Scheme aimed at the Rs15,000 to Rs20,000 income segment, is looking to fill this void. However, the government doesn’t plan to do this completely by itself. Rather it wants to play the role of a facilitator, while the private sector invests and builds houses. For this purpose, it plans to create a land bank register and a one window facility, to ascertain where government owned lands exist and to bring all kinds of permission and facilitations related to the project under one roof.

No room for misconceptions

ccording to the figures quoted on the media by government representatives, the total cost of the project is $180 billion which is equal to almost 60% of Pakistan’s GDP and the banks which are supposed to finance the major part of this scheme currently lack the liquidity to do so. As of June 2018, the entire Pakistani banking sector has Rs12.7 trillion ($95 billion) in deposits. However, Shandana Gulzar Khan, the Parliamentary Secretary for Commerce disagrees with the cost figure. “The $180 billion figure comes from a non-government source, a real estate developer from the UK. PTI has never officially or unofficially floated that figure or worked on it,” she says. “The working on the Rs1.5 to 2.5 million per house price is also grossly misquoted and overstated. The only correct benchmark is that the government can only contribute one thing, which is land for the housing.” Jawad Aslam, CEO of Ansar Management Company, a real estate company that is working on low-cost

housing projects in Pakistan in a private capacity, has attended two meetings of the government’s task force on housing. He also confirms that neither the $180 billion figure has ever come up in those meetings, nor the Rs1.5 to 2.5 million cost per house that is being discussed in the media. On the other hand, Hassan Bakshi, the chairman of the Association of Builders and Developers (ABAD), feels that the actual cost of the project will be much lower. “The total cost of the project will at most be around $40-$50 billion according to our estimates,” he says. But he insists that the per house cost has to be lower than Rs2.5 million as only properties valuing up to Rs2.5 million come under low cost housing as defined by the SBP. The $180 billion valuation he says came from the UK-based real estate developer Aneel Mussarat, who had estimated the price of a house at as high as $100,000. Profit tried to reach out to the property tycoon, but received no response. “Forty percent of the project is to be undertaken in rural areas, where the cost will be as low as Rs250,000 to Rs300,000 per house,’ Hassan says. How? He explains that according to the international definition, a house consists of at least two rooms, a washroom and a kitchen. Most building in rural areas lack such infrastructure and currently are not considered a house under the definition. According to him, if owners of such building in rural areas are given loans, they can add to the existing infrastructure and fall under the homeowner category.

The mortgage game

s far as the financing of the project goes, the government’s plan is simple. It wants to curtail revenue leakages, encourage the private sector to invest, and encourage commercial banks to increase their mortgage financing portfolio. “International organisations are being brought into the country to help the government look for the most sustainable path to recovery of the stolen tax payer money,” says Shandana Gulzar Khan. However the most important aspect of financing the government is focusing on is the mortgage business. According to the World Bank figures, the ratio of housing debt to GDP stands at 0.5%, compared to 3%

“THE TOTAL COST OF THE PROJECT WILL AT MOST BE AROUND $40-$50 BILLION ACCORDING TO OUR ESTIMATES. BUT THE PER HOUSE COST HAS TO BE LOWER THAN RS2.5 MILLION AS ONLY PROPERTIES VALUING UP TO RS2.5 MILLION COME UNDER LOW-COST HOUSING AS DEFINED BY THE SBP” Hassan Bakshi, Chairman of the Association of Builders and Developers (ABAD) in Bangladesh, 7.5% in Sri Lanka, 7.7% in India, 40.9% in Germany and 63% in the United States (US). Nevertheless, the low housing debt to GDP ratio in Pakistan is not without reason. Internationally mortgage interest rates fall under the 4% to 5% range. However SBP’s current discount rate of over 8% would mean that consumers will have to pay a mortgage rate of over 10%, making mortgages an expensive option. However, according to SBP’s report on policy for promotion of low-cost housing finance, “the central bank is to introduce a subsidised financing facility for low-cost housing by providing liquidity to the financial institutions at subsidized rates. SBP will provide refinance up to Rs1 million or 50 per cent of the loan amount at a rate of 1 per cent to banks and Development Finance Institutions (DFIs) and the end borrower rate will be 5 per cent. The remaining 50 per cent of the loan financing amount shall be provided by the banks and DFIs from their own sources at fixed rate of up to 12% or variable rate of 1-year KIBOR plus risk premium of upto 4%.” According to Hassan Bakhshi, if the central bank is successful in implementing this policy, the combined mortgage rate will come down to around 8 per cent. “What we are saying

is that if you are paying Rs10,000 in rent per month, you can pay a little extra and own the house you live in after 20 years,’ he says. However, the proposition is not that simple and there is still some thinking that the government needs to do. Rental yields in Pakistan are around 3 per cent and it can cost around Rs6,000 to rent a house worth Rs2.5 million. A person living on Rs15,000 to Rs20,000 can bear this amount. However, not many individuals falling under this income bracket will be willing to pay an amount in excess of Rs10,000. On the other hand, there are no proper foreclosure laws to protect banks against defaulting customers. In 2001, the Financial Institutions (Recovery of Finances) Ordinance (FIRO) was introduced to empower financial institution to foreclose the property of a defaulter without the intervention of the court. However, the same was declared as ultra-vires to the constitution of Pakistan in 2013. The SBP has proposed amendments in the ordinance and is currently facilitating in drafting rules which will help streamline the foreclosure process for financial institutions. If this is done properly, it will help remove one of the biggest deterrents for to mortgage financing in Pakistan.

The private sector perspective

awad Aslam is the Chief Executive Officer at the Ansaar Management Company, an organisation working on providing low cost housing in Pakistan. The company is funded by two foreign investors, Places for people based in the UK and Reall, based in

REAL ESTATE

Scotland. Currently AMC is providing, 953-square-foot houses that cost Rs1.2 million. Having attended meetings of the government’s task force on housing Jawad is fairly positive about the government’s intentions regarding the housing issue. However he still feels that it will be a challenge for the government to bring the private sector on board. “The return on investment (ROI) for real estate developers fall in the range of 200% to 300%, whereas in the low-cost housing segment, ROI is as low as 15%. Why would people invest in low-cost housing if they can get a higher ROI otherwise?” he asks. Jawad feels that the government needs to make some calibrations and provide a conducive ecosystem to attract the private sector to invest into low-cost housing. “A range of initiatives and safeguards are being devised. The Law Ministry is looking at the legal issues, such as ownership and lease. The Finance Ministry has been tasked with finding a suitable financial model which is not susceptible to misuse, corruption or exploitation and at the same time is easy to manage,” assures Shandana Gulzar Khan, the federal secretary for commerce. Perhaps AMC’s model can help potential private investors to increase their returns. The company builds hous-

“THE RETURN ON INVESTMENT (ROI) FOR REAL ESTATE DEVELOPERS FALL IN THE RANGE OF 200% TO 300%, WHEREAS IN THE LOW-COST HOUSING SEGMENT, ROI IS AS LOW AS 15%. WHY WOULD PEOPLE INVEST IN LOW-COST HOUSING IF THEY CAN GET A HIGHER ROI OTHERWISE?” Jawad Aslam, CEO at the Ansaar Management Company

“A RANGE OF INITIATIVES AND SAFEGUARDS ARE BEING DEVISED. THE LAW MINISTRY IS LOOKING AT THE LEGAL ISSUES, SUCH AS OWNERSHIP AND LEASE. THE FINANCE MINISTRY HAS BEEN TASKED WITH FINDING A SUITABLE FINANCIAL MODEL WHICH IS NOT SUSCEPTIBLE TO MISUSE, CORRUPTION OR EXPLOITATION AND AT THE SAME TIME IS EASY TO MANAGE” Shandana Gulzar Khan, Federal Secretary for Commerce es on 60% of the buildable area and sells them at cost, on the condition that the buyer moves into the house within 60 days, and cannot sell it, rent it or leave it empty for a period of 4 years to avoid it becoming a ghost housing scheme. The rest of the 40% of the buildable area is sold as plots on premium market rates. These plots, unlike the houses, don’t have any conditions

attached and deliver a major part of AMC’s returns. However, according to Jawad, the target of five million houses is a bit too optimistic. “Five million houses cannot happen. But it doesn’t matter. What needs to happen is accessibility to housing for all. People should be able to find a development that is equal to their socio-economic status and should be able to have financing available to buy a house there. PTI might not be able to achieve even one million houses in the next five years, but if that motion is set in place, with proper planning then the housing problem will not exist anymore.” Hassan Bakshi, the Chairman of ABAD also stresses on the need for government facilitation. “As builders we need a one window approval process, we need clear titles of land and we need an assurance that once this scheme is launched our allied manufacturers and suppliers will not increase their prices,” he demands. As a case in hand, prices in the cement industry in Pakistan that is marred by cartelisation are unreasonably high. Secondly, zoning laws limit the construction of high-rise buildings and Hassan stresses the need for taking the judiciary on board. “The scheme cannot be a success if the judiciary is not on the same page. We have to realise that this scheme is for our own economic benefit. If we keep putting bans on construction, the scheme will not work,” he says. “We have the demand, labour and land needed for the project. We have to increase our capacity and arrange finance,” he explains concluding that the 5 million number is challenging but achievable.

HOUSING

By Farooq Tirmizi

or almost any educational program, there is almost never just one reason why it exists and why students may choose to pursue it. That, however, is not the case with the MBA, a degree designed with a singular purpose in mind: to help its students advance their professions and to maximise their earning potential. As such, it is a relatively easier task to create an objective ranking of MBA programs than any other type of degree. In our inaugural rankings of global MBA programs, Profit starts off with a simple premise: what is the menu of options available to Pakistani students and young professionals contemplating an MBA program, and how should those programs be ranked? As far as we can tell, this is an exercise that has never taken place before, and hence, the list we have produced looks nothing like any of the other rankings of global MBA programs you may have seen. You will notice in our rankings, for instance, that Pakistan’s two top MBA programs – the Lahore University of Management Sciences (LUMS) and the Institute of Business Administration (IBA) – appear quite prominently. That is almost by design: as the two most desirable local options in business education for Pakistanis, both universities would naturally feature at least somewhere in the list of a person considering an MBA. But before we delve into our list – and explain why there are three of them – a few notes on our methodology and how and why we decided to produce yet another ranking of MBA programs.

Methodology

he problem with most other MBA rankings – from our perspective – is that they tend to judge MBA programs on several factors, but ignore the ones that should be absolutely crucial to a Pakistani student or young professional about to embark on an MBA program. The most important factor that is ignored by virtually all rankings is the US immigration system, and the fact that getting a work visa in the United States after graduating with a degree there is now subject to a lottery, and not like most other countries, where it is a much simpler application. This is

not a trivial detail: more than half of all top-ranked MBA programs are in the United States, and American programs tend to be more expensive than European ones, and the starting salaries of the graduates of US MBA programs tend to be higher than those of just about anywhere else. What happens to international students in the United States matters, but no ranking captures the changed immigration law calculus that most non-Americans now undertake – at least informally – when making a decision as to whether or not to head over to the US for an MBA. At Profit, we have sought to formalise that hitherto informal calculation and offer our readers a quantitative assessment of the following question: is going to America still worth it? Obviously, that question has many components of its answer, but we have provided through our rankings a beginning of how to think about the economic trade-offs involved in that decision. Unlike most other rankings, ours is based on a single, objective measure: how much does a particular MBA program add to your earning power relative to what you would have earned had you not gone there at all. There are three key calculations we make in order to arrive at that number, which we then use to rank all of the major MBA programs across the world, plus the two major Pakistani ones. The first calculation is simply understanding the post-MBA lifetime earning power of a graduate of all of the 109 top programs for which we collected data. This is done by relying on some observed data and then making certain assumptions. The observed data points that we have are the post-MBA starting salaries, and the salaries of alumni six years after graduating from the program. We then assume that a typical MBA graduate – who is 28 when they join a business school and 30 when they leave it – sees the most rapid increase in income in those first six years, and then sees a further 50%, inflation adjusted, increase in their earning power over the next 12 years, until they hit their peak income in their late-40s, following which their income grows only at inflation rates until they hit retirement age, which we have assumed to be 65 years.

This pattern of income growth is based largely on patterns observed in historical data about income over time for people in the United States and Europe, which are the primary markets in which graduates of top-tier global MBA programs work. We recognise that we have not factored in the differences between men and women and how they are treated in the workforce in these assumptions about earning power. We will attempt to correct for this oversight in subsequent editions of this ranking. The next calculation we make is to figure out how much graduates of these programs would have made had they never decided to get an MBA. The calculation is similar to the one described above, except that its starting point is not the post-MBA salary, but the pre-MBA salary. The third step we take is to then adjust the lifetime earnings number for US MBA programs by assuming that there is only a 65% chance of getting the H-1B work visa that would allow a graduate to stay on and continue working inside the United States (this 65% is based on our estimates of probabilities of getting the visa in recent years.) The remaining 35% is assumed to have the same earning power as a typical LUMS graduate. We think it is reasonable to assume that if you come back home to Pakistan with an MBA from Harvard, you will at least get the same salaries as a LUMS MBA graduate. For the Pakistani MBA programs, we used a slightly different methodology. Since Pakistan is a low-income country where incomes have a long way to go before they hit a plateau, we did not assume that a person who continues to work in Pakistan will see their income flatline after their late-40s, but rather will continue to rise faster than inflation until their retirement. We also excluded some business schools from this list, most notably all Indian business schools. The reason we did this is because this list is meant to reflect the realm of possibility for Pakistani students: living, studying, and working in India are not realistic options for Pakistanis and hence we decided to exclude the four Indian MBA programs that would otherwise have made this list. The list was restricted to busi-

BUSINESS EDUCATION

INSEAD ness schools for which it is possible to attain full cost-of-attendance financing for the entire MBA program. We did this because we want to make sure that our list represents the options for all Pakistani professionals, not just those whose families have the money to be able to afford to send them to elite universities abroad. The list, therefore, consists entirely of business schools for which it is possible to get a loan to cover the full cost, including living expenses. The numbers are not adjusted for purchasing power parity, because we believe that for globally mobile professionals, a dollar is a dollar. Lifestyles of the global upper middle class have a surprising degree of convergence, and hence understanding the absolute differences in earning potential is important to be aware of. We also did not factor in the cost of the programs into our rankings, though we did include the rate of return on each program in the data we list to demonstrate how much cost can play a role. Finally, we used US dollars for this entire exercise because more than half of the MBA programs analysed are based in the United States, and because using US dollars allowed us to avoid astronomically large numbers in Pakistani rupees that would be difficult to make sense of, given the much higher rates of inflation in Pakistan compared to the US. We assumed that

the long-term rupee depreciation rate of 6% per year would continue into the future (and we took into account the recent sharp weakening as well.)

Why the 3 lists?

o be clear, we have produced only one ranking: the one labelled “By adjusted MBA premium”. The other two lists are included in this inaugural ranking only to illustrate just how much of a difference our Pakistani-perspective-specific adjustments make to the otherwise standard global lists of top MBA programs. These lists will be excluded from next year’s ranking onwards. The first list is organised simply by the raw lifetime earning power of each MBA program’s graduates. It shows you why Harvard and Wharton are considered to be the powerhouses that they are: nobody earns more than Harvard MBA graduates, with Wharton close behind. Interestingly, Berkeley appears to slightly outearn Stanford, which is otherwise thought to be considered a more prestigious MBA program. The other thing this first list shows is just how dominant the United States is, and just how much richer the American upper middle class is relative to the rest of the world’s upper middle class. Eight of the top 10 schools by earning power are in the United States, and 17

of the top 20. Only IMD, INSEAD, and London Business School make it as non-US programs in the top 20. And in case you think that America and Canada are almost the same, take a look at where the first Canadian business school makes its entry: the University of Western Ontario’s Ivey Business School at number 30. Australia’s best business school – the University of Melbourne – is all the way down at number 41. The top-ranked Asian business school is at the Hong Kong University of Science and Technology, at number 47. In this ranking, LUMS is ranked at 92, and IBA at 108. It is absolutely true that in terms of raw earning power over the course of a lifetime, Pakistani MBA programs still lag relatively far behind, though it is likely that they will continue to climb higher in subsequent years. In the second list, we adjust for not just raw lifetime earning power, but how much of that power comes from attending that specific business school versus how much comes from other innate qualities of the people who attend it. After all, if you are talented enough to get into Stanford, odds are pretty good that you were doing better than average even before you applied. In short, we want to see what premium in your wages the MBA program actually delivers over the course of an average graduate’s lifetime. Once we

LUMS adjust for the MBA earning premium, we see a very different list: Harvard retains the top spot, but INSEAD moves into second place. LUMS jumps up to number 19, and IBA leaps up to number 30. The third list – the actual Profit ranking of global MBA programs – shows a very interesting picture. Once we adjust for the risks of US immigration laws and assume that a foreign MBA delivers LUMS-like earning power to returning graduates, there is a stark difference: Harvard is dethroned and American universities are wiped off from the list of the top three completely, with IMD, INSEAD, and London Business School taking their place. LUMS breaks into the top 10, and IBA makes it to number 13! This list, we believe, reflects how economic decisions should be made: by comparing each option to its next best alternative, and by weighting the probabilities of competing scenarios based on their statistical likelihood of occurrence. This, of course, does not mean that this list will represent the hierarchy of factors that go into deciding how each individual thinks about their future. It does, however, illustrate one example of how one should weigh the publicly available information to suit one’s own needs and one’s own personal context.

What the list means

t Profit, we believe it is important not just to present data, but also to make an effort to interpret the data. The two most

important elements of our ranking are the following: the hit to the rankings of American schools, and the surprisingly higher ranking of LUMS and IBA.

How attractive is the US option?

et’s address the first question: is an MBA from the United States still worth the costs and the risks? America invented the very concept of a graduate business education, and Harvard specifically invented the MBA. America is also still much richer than just about any country in the world, and the American upper middle class, specifically, is the single biggest concentration of wealth on the planet. There are many ways to break into that class of people, but for a foreign citizen, getting an MBA from a top-tier MBA program is – or perhaps used to be – the easiest way to get that done. In recent years, however, specifically since the election of President Donald Trump, the United States government has a adopted a different approach to immigration policy, which has consequences for people who might still be considering moving to the US for an education. Specifically, the H-1B work visa, which has not been particularly easy to get over the past decade, has become even more difficult to obtain. In such circumstances, universities in Canada and Europe appear to be safer options for students, and indeed, that seems to the verdict by students from around the world. According to data from the Graduate Management

Admission Council, the body that conducts the GMAT exam, the number of applications from international students to MBA programs in the United States declined by 10.5% in 2018, dropping from 75,683 in 2017 to 67,731 in 2018. During that same year, applications from international students to European business schools went up by 3.4%, to Canada by 16.4% and to business schools in the Asia Pacific region by 15.1%. And unlike previous years, the decline is hitting even elite universities like Harvard, Stanford, and Wharton. Applications to Harvard declined by 4.5% this year, at Stanford by 4.6%, and at Wharton by 6.7%, according to reporting by The Wall Street Journal. Does the rise in the fate of non-US business schools mean that Pakistani business schools – both of them – will also see an increase in interest from both students and employers? The answer to that question is likely yes in the long run, though the short run is unlikely to see much impact. Pakistani business schools do not attract a global pool of employers, and hence they do not attract a global pool of applicants, which limits the incomes generated by graduates of these programs to the specific dynamics of the Pakistani economy, where wages continue to rise, but have a long way to go before they will reach the levels of developed economies. Nonetheless, if Pakistani students face a tougher environment in other parts of the world, it is good to know that local business schools are still available and open doors to tremendous opportunities.

BUSINESS EDUCATION

Business school rankings

Raw Earning Power

Annual Total Rank University School Location Country tuition tuition 1 Harvard University Harvard Business School Boston, MA United States $73,440 $146,880 2 University of Pennsylvania The Wharton School Philadelphia, PA United States $78,948 $157,896 3 University of California Berkeley Haas School of Business Berkeley, CA United States $61,506 $123,012 4 Stanford University Graduate School of Business Stanford, CA United States $70,590 $141,180 5 Columbia University Columbia Business School New York, NY United States $74,400 $148,800 6 University of Chicago Booth School of Business Chicago, IL United States $72,000 $144,000 7 IMD Lausanne Switzerland $85,000 8 INSEAD Fontainbleau France $98,948 9 Dartmouth College Tuck School of Business Hanover, NH United States $72,150 $144,300 10 Northwestern University Kellogg School of Management Evanston, IL United States $71,544 $143,088 11 University of London London Business School London United Kingdom $102,549 12 New York University Stern School of Business New York, NY United States $71,676 $143,352 13 Massachusetts Institute of Technology Sloan School of Management Cambridge, MA United States $74,200 $148,400 14 University of California Los Angeles Anderson School of Management Los Angeles, CA United States $59,866 $119,732 15 Yale University School of Management New Haven, CT United States $66,650 $133,300 16 University of Virginia Darden School of Business Charlottesville, VA United States $68,510 $137,020 17 Duke University Fuqua School of Business Durham, NC United States $68,200 $136,400 18 Cornell University Johnson School of Management Ithaca, NY United States $66,290 $132,580 19 Emoriy University Goizueta School of Business Atlanta, GA United States $64,128 $128,256 20 University of Texas-Austin McCombs School of Business Austin, TX United States $54,924 $109,848 21 Carnegie Mellon University Tepper School of Business Pittsburgh, PA United States $65,000 $130,000 22 University of Michigan Ann Arbor Ross School of Business Ann Arbor, MI United States $68,646 $137,292 23 University of Cambridge Judge School of Business Cambridge United Kingdom $71,852 24 IE University IE Business School Madrid Spain $83,065 25 Fordham University Gabelli School of Business New York, NY United States $50,835 $101,670 26 Vanderbilt University Owen School of Business Nashville, TN United States $56,150 $112,300 27 University of Oxford Said School of Business Oxford United Kingdom $71,852 28 University of Southern California Marshall School of Business Los Angeles, CA United States $62,140 $124,280 29 Georgetown University McDonough School of Business Washington, DC United States $61,902 $123,804 30 University of Western Ontario Ivey Business School London, ON Canada $84,737 31 University of St Gallen St Gallen, SG Switzerland 32 University of Navarra IESE Business School Barcelona Spain $101,415 33 Boston College Carroll School of Management Chestnut Hill, MA United States $51,200 $102,400 34 University of North Carolina Kenan-Flagler School of Business Chapel Hill, NC United States $64,182 $128,364 35 University of Notre Dame Mendoza College of Business Notre Dame, IN United States $54,120 $108,240 36 Bocconi University SDA Bocconi School of Management Milan Italy $65,600 37 Rice University Jones Graduate School of Business Houston, TX United States $58,000 $116,000 38 University of California Irvine Merage School of Business Irvine, CA United States $51,480 $102,960 39 Washington University in St Louis Olin School of Business St Louis, MO United States $59,950 $119,900 40 University of Washington Foster School of Business Seattle, WA United States $48,333 $96,666 41 University of Melbourne Melbourne Business School Melbourne, VIC Australia $63,545 42 Ramon Llull University ESADE Barcelona Spain $85,092 43 University of Rochester Simon School of Business Rochester, NY United States $46,000 $92,000 44 Rutgers University School of Business Piscataway, NJ United States $45,689 $91,378 45 University of Iowa Tippie School of Business Iowa City, IA United States $40,134 $80,268 46 Southern Methodist University Cox School of Business Dallas, TX United States $45,975 $91,950 47 Hong Kong University of Science and Technology HKUST Business School Hong Kong China $75,000 48 Purdue University Krannert School of Management West Lafayette, IN United States $42,464 $84,928 49 Arizona State University Carey School of Business Tempe, AZ United States $50,550 $101,100 50 Brigham Young University Marriott School of Business Provo, UT United States $26,120 $52,240 51 Indiana University Kelley School of Business Bloomington, IN United States $49,955 $99,910

Annual all-in cost $109,124 $111,900 $96,598 $115,797 $110,978 $108,683 $107,200 $103,350 $113,166 $111,570 $98,699 $93,900 $96,276 $94,385 $92,190 $88,835 $77,644 $88,378 $92,834 $85,905 $82,900 $98,955 $93,020 $56,500 $147,319 $74,535 $89,220 $74,120 $88,424 $69,480 $89,359 $78,829 $68,187 $63,689 $58,866 $75,628 $62,464 $72,350 $47,456 $74,084

Total all-in cost $218,248 $223,800 $193,196 $231,594 $221,956 $217,366 $121,000 $126,562 $214,400 $206,700 $159,180 $226,332 $223,140 $197,398 $187,800 $192,552 $188,770 $184,380 $177,670 $155,288 $176,756 $185,668 $91,985 $112,057 $171,810 $165,800 $91,985 $197,910 $186,040 $105,311 $69,500 $52,000 $149,070 $178,440 $148,240 $89,078 $176,848 $138,960 $178,718 $157,658 $82,005 $134,474 $136,374 $127,378 $117,732 $151,256 $102,829 $124,928 $144,700 $94,912 $148,168

Pre-MBA Post-|MBA 6-Year Job placement 50-Year salary salary later rate CAGR $85,000 $150,000 $280,000 90.6% 13.3% $85,000 $150,000 $262,500 95.5% 11.8% $86,250 $135,000 $260,000 90.6% 14.0% $85,000 $155,000 $255,000 82.4% 10.5% $80,000 $140,000 $250,000 92.3% 12.3% $80,000 $140,000 $242,000 95.2% 11.6% $80,000 $157,000 $240,000 81.8% 8.9% $66,000 $120,000 $239,000 82.3% 14.8% $80,000 $135,000 $236,500 95.6% 11.9% $79,000 $135,000 $230,000 95.0% 11.2% $75,000 $133,500 $220,000 93.6% 10.5% $75,000 $125,000 $213,000 91.8% 11.2% $70,000 $140,000 $210,000 92.5% 8.4% $72,000 $115,000 $207,000 87.7% 12.5% $75,000 $130,000 $205,000 89.9% 9.5% $70,000 $123,000 $202,000 90.2% 10.4% $65,000 $124,000 $200,000 91.6% 10.0% $70,000 $123,500 $192,000 90.1% 9.2% $58,000 $106,000 $185,600 93.1% 11.9% $72,000 $115,000 $184,500 89.2% 9.9% $65,000 $110,000 $183,250 85.2% 10.7% $70,000 $125,000 $180,000 91.8% 7.6% $70,000 $120,000 $178,500 89.0% 8.3% $63,000 $101,000 $180,000 88.9% 12.3% $75,000 $97,500 $180,000 72.3% 13.0% $66,000 $104,000 $177,000 90.1% 11.2% $66,000 $120,000 $175,000 79.9% 7.8% $71,000 $108,000 $175,000 91.5% 10.1% $65,000 $113,000 $174,000 90.3% 9.0% $56,000 $85,000 $173,500 81.6% 15.3% $60,000 $130,000 $169,350 75.7% 5.4% $115,500 $170,000 95.3% 8.0% 46.5% $60,000 $100,000 $170,000 87.7% 11.2% $65,000 $110,000 $165,500 90.4% 8.5% $63,000 $100,000 $166,000 89.7% 10.7% $51,000 $100,000 $162,500 88.8% 10.2% $55,000 $105,000 $160,500 84.2% 8.9% $58,000 $90,000 $160,000 91.4% 12.2% $60,000 $99,000 $158,500 96.3% 9.9% $55,000 $100,000 $157,000 98.0% 9.4% $68,500 $110,000 $154,500 96.3% 7.0% $50,000 $100,000 $155,100 82.7% 9.2% $54,500 $88,000 $155,000 95.2% 12.0% $60,000 $85,000 $154,700 96.3% 12.7% $47,500 $90,000 $154,000 80.4% 11.3% $55,000 $90,000 $154,000 83.3% 11.3% $65,000 $99,000 $152,500 90.0% 9.0% $50,000 $90,000 $153,000 81.5% 11.2% $50,000 $95,500 $151,500 95.1% 9.7% $50,000 $98,500 $151,000 89.1% 8.9% $60,000 $105,000 $150,000 94.0% 7.4%

Rated of return 41.3% 38.4% 38.1% 37.5% 37.1% 36.6% 64.4% 55.8% 35.1% 35.5% 43.3% 30.7% 35.9% 32.2% 34.9% 34.8% 37.9% 34.2% 36.5% 33.6% 33.2% 32.1% 53.2% 43.4% 24.9% 31.4% 56.9% 25.6% 30.9% 42.7% 91.0% $3,248,762 35.2% 29.4% 32.4% 59.5% 33.5% 33.1% 28.4% 34.3% 45.7% 42.2% 34.2% 30.8% 44.4% 31.9% 35.9% 40.2% 37.6% 53.9% 32.2%

Lifetimes Earnning potantial Non-MBA MBA MBA premium $5,310,477 $11,247,673 $5,908,742 $5,310,477 $10,576,382 $5,237,451 $5,388,572 $10,429,571 $5,012,127 $5,310,477 $10,305,004 $4,966,074 $4,998,096 $10,063,150 $5,038,274 $4,998,096 $9,756,146 $4,731,270 $4,998,096 $9,734,987 $4,710,112 $4,123,429 $9,572,998 $5,427,475 $4,998,096 $9,528,338 $4,503,462 $4,935,620 $9,278,835 $4,316,770 $4,685,715 $8,889,850 $4,179,029 $4,685,715 $8,592,936 $3,882,115 $4,373,334 $8,526,540 $4,129,773 $4,498,286 $8,329,186 $3,806,798 $4,685,715 $8,302,033 $3,591,212 $4,373,334 $8,163,889 $3,767,122 $4,060,953 $8,090,327 $4,007,615 $4,373,334 $7,781,215 $3,384,448 $3,623,620 $7,477,814 $3,834,779 $4,498,286 $7,465,319 $2,942,931 $4,060,953 $7,400,889 $3,318,178 $4,373,334 $7,324,375 $2,927,608 $4,373,334 $7,250,756 $2,853,990 $3,936,001 $7,246,141 $3,289,052 $4,685,715 $7,234,298 $2,523,477 $4,123,429 $7,141,029 $2,995,507 $4,123,429 $7,116,077 $2,970,555 $4,435,810 $7,077,400 $2,617,823 $4,060,953 $7,055,208 $2,972,496 $3,498,667 $6,942,053 $3,424,640 $3,748,572 $6,929,681 $3,161,024 $6,909,354 $3,643,185 $3,748,572 $6,858,991 $3,090,334 $4,060,953 $6,718,658 $2,635,946 $3,936,001 $6,705,386 $2,748,297 $3,186,286 $6,570,936 $3,367,578 $3,436,191 $6,510,293 $3,055,691 $3,623,620 $6,441,762 $2,798,727 $3,748,572 $6,413,968 $2,645,311 $3,436,191 $6,359,567 $2,904,965 $4,279,620 $6,295,294 $1,992,744 $3,123,810 $6,286,523 $3,145,975 $3,404,953 $6,243,186 $2,819,990 $3,748,572 $6,221,565 $2,452,908 $2,967,620 $6,211,484 $3,227,964 $3,436,191 $6,211,484 $2,756,882 $4,060,953 $6,183,323 $2,100,612 $3,123,810 $6,173,092 $3,032,545 $3,123,810 $6,133,542 $2,992,995 $3,123,810 $6,124,031 $2,983,483 $3,748,572 $6,106,279 $2,337,622

BUSINESS EDUCATION

Annual Total Rank University School Location Country tuition tuition 52 University of Wisconsin Wisconsin Business School Madison, WI United States $40,459 $80,918 53 Michigan State University Broad School of Business East Lansing, MI United States $50,633 $101,266 54 Georgia Institute of Technology Scheller School of Business Atlanta, GA United States $42,196 $84,392 55 University of Georgia Terry School of Business Athens, GA United States $32,112 $64,224 56 Texas A&M University Mays Business School College Station, TX United States $55,443 $110,886 57 China Europe International Business School Shanghai China $57,120 58 Pennsylvania State University Smeal School of Business University Park, PA United States $41,822 $83,644 59 Ohio State University Fisher School of Business Columbus, OH United States $48,563 $97,126 60 University of Toronto Rotman School of Management Toronto, ON Canada $45,858 $91,717 61 University of Minnesota Carlson School of Management Minneapolis, MN United States $56,670 $113,339 62 University of Oklahoma Price School of Business Norman, OK United States $54,000 63 Imperial College London Imperial College Business School London United Kingdom $68,120 64 University of Maryland Smith School of Business College Park, MD United States $56,261 $112,522 65 HEC Paris Paris France 66 Boston University Questrom School of Business Boston, MA United States $51,966 $103,932 67 Nanyang Technological University Nanyang Business School Singapore Singapore 68 University of Manchester Alliance Manchester Business School Manchester United Kingdom $57,640 69 Cranfield University Cranfield School of Management Cranfield United Kingdom $51,090 70 University of Hong Kong Hong Kong China $71,760 71 Copenhagen Business School Copenhagen Denmark $50,899 72 College of William & Mary Mason School of Business Williamsburg, VA United States $44,480 $88,960 73 National University of Singapore NUS Business School Singapore Singapore $45,260 74 University of Florida Hough School of Business Gainesville, FL United States $30,630 $61,260 75 University of Illinois at Urbana-Champaign School of Business Urbana-Champaign, IL United States $41,388 $82,776 76 University of Texas-Dallas Jindal School of Business Dallas, TX United States $35,156 $60,744 77 City University of London Cass School of Business London United Kingdom $57,640 78 University of Warwick Warwick Business School Coventry United Kingdom $52,335 79 Chinese University of Hong Kong Business School Hong Kong China $72,280 80 McGill University Desautels Faculty of Management Montreal, QC Canada $35,673 $71,345 81 Queenâ&#x20AC;&#x2122;s University Smith School of Business Kingston, ON Canada $70,680 82 University of Mannheim Mannheim Business School Mannheim, BW Germany $51,603 83 ESMT Berlin Berlin, BE Germany $65,320 84 Shanghai Jiaotong University Antai College of Management Shanghai China $21,560 $43,120 85 University of Utah Eccles School of Business Salt Lake City, UT United States $30,000 $60,000 86 University of New South Wales Australian Graduate School of Management Sydney, NSW Australia $59,640 87 Hult International Business School Cambridge, MA United States $80,150 88 The Lisbon MBA Lisbon Portugal $43,700 89 University of Edinburgh Business School Edinburgh United Kingdom $40,217 90 WHU Beisheim School of Management Vallandar, RP Germany $1 $44,850 91 Singapore Management University Lee Kong Chian Singapore Singapore $47,249 92 Lahore University of Management Sciences Dawood School of Business Lahore Pakistan $5,496 $10,992 93 Erasmus University Rotterdam School of Management Rotterdam Netherlands $58,075 94 Edhec Business School Lille France $50,600 95 Durham University Business School Durham United Kingdom $39,300 96 HEC Montreal Montreal, QC Canada $25,840 97 City University of New York Zicklin School of Business New York, NY United States $28,278 $56,556 98 University College Dublin Smurfit Graduate Business School Dublin Ireland $39,675 99 Lancaster University School of Management Lancaster United Kingdom $39,955 100 University of Paris-Seine Essec Business School Cergy-Pontoise France $51,750 101 Leeds University Business School Leeds United Kingdom $37,990 102 Fudan University School of Management Shanghai China $18,886 $37,772 103 Ryerson University Rogers School of Management Toronto, ON Canada $32,813 104 University of Bath School of Management Bath United Kingdom $49,125 105 EMLyon Business School Paris France $44,275 106 University of Strathclyde Strathclyde Business School Glasgow United Kingdom $41,200 107 State University of New York at Buffalo School of Management Buffalo, NY United States $28,639 $57,277 108 Institute of Business Administration Karachi Pakistan $3,464 $6,928 109 ESIC Business & Marketing School Seville Spain $35,666

Annual all-in cost $64,077 $73,720 $60,932 $46,112 $79,777 $66,368 $75,023 $64,711 $74,960 $76,031 $79,925 $69,966 $45,260 $62,660 $48,310 $64,042 $53,323 $48,400 $38,360 $44,000 $7,313 $55,604 $35,686 $46,811 $5,624

Total all-in cost $128,154 $147,440 $121,864 $92,224 $159,554 $67,200 $132,736 $150,046 $129,422 $149,919 $70,000 $88,451 $152,062 $108,675 $139,932 $70,390 $70,740 $66,286 $91,962 $72,184 $125,320 $70,390 $96,620 $128,084 $87,995 $77,971 $67,111 $92,482 $96,799 $87,417 $67,933 $88,835 $76,720 $88,000 $83,097 $107,350 $64,400 $56,448 $65,550 $72,379 $14,626 $78,775 $64,400 $55,020 $43,320 $111,208 $61,525 $52,400 $72,450 $53,710 $71,372 $47,141 $72,705 $64,975 $64,780 $93,621 $11,248 $56,376

Pre-MBA salary $60,000 $50,000 $55,000 $50,000 $60,000 $40,000 $43,000 $50,000 $50,000 $50,000 $40,000 $60,000 $60,000 $50,000 $60,000 $58,795 $40,000 $50,000 $50,033 $64,000 $53,000 $30,000 $50,000 $55,000 $55,000 $59,358 $50,000 $52,959 $50,000 $60,000 $54,000 $62,000 $20,593 $52,500 $59,640 $45,000 $46,857 $45,251 $43,929 $28,077 $8,484 $50,000 $45,251 $41,251 $50,000 $44,000 $57,669 $53,546 $54,054 $49,714 $16,202 $47,500 $45,349 $51,572 $44,086 $35,000 $3,535 $26,000

Post-|MBA 6-Year Job placement 50-Year salary later rate CAGR $98,700 $150,000 88.2% 8.7% $100,000 $147,000 95.5% 8.0% $96,250 $146,000 94.5% 8.7% $82,500 $147,000 92.5% 12.2% $96,000 $145,500 93.8% 8.7% $70,000 $147,000 92.7% 16.0% $97,500 $139,800 88.9% 7.5% $90,000 $140,350 93.3% 9.3% $89,250 $138,500 80.3% 9.2% $100,000 $137,000 93.5% 6.5% $73,500 $138,500 74.1% 13.5% $90,000 $136,600 90.0% 8.7% $94,500 $136,000 80.0% 7.6% $91,000 $136,000 91.9% 8.4% $89,000 $134,900 91.4% 8.7% $117,000 $132,288 98.0% 2.5% $89,000 $132,000 75.6% 8.2% $90,000 $131,623 74.3% 7.9% $107,070 $128,245 85.0% 3.7% $91,000 $129,500 60.7% 7.3% $85,000 $129,500 80.6% 8.8% $61,064 $130,369 95.5% 16.4% $73,600 $127,500 93.2% 11.6% $92,250 $125,500 89.5% 6.3% $78,500 $125,962 92.2% 9.9% $111,000 $123,201 81.0% 2.1% $81,200 $125,000 86.4% 9.0% $97,578 $122,866 97.0% 4.7% $82,000 $122,500 81.0% 8.4% $85,000 $120,000 78.0% 7.1% $78,500 $120,000 97.4% 8.9% $86,000 $118,500 80.9% 6.6% $43,246 $121,635 70.0% 23.0% $76,500 $117,000 91.2% 8.9% $88,750 $115,909 86.0% 5.5% $80,000 $115,000 90.1% 7.5% $82,000 $113,470 68.0% 6.7% $81,000 $113,420 82.0% 7.0% $67,650 $112,794 82.0% 10.8% $65,700 $112,173 90.0% 11.3% $12,422 $27,325 95.0% 17.1% $72,905 $110,000 88.0% 8.6% $81,000 $107,505 78.0% 5.8% $89,928 $104,306 89.0% 3.0% $70,000 $105,000 52.8% 8.4% $78,000 $104,000 90.0% 5.9% $94,000 $102,643 93.0% 1.8% $75,000 $104,106 61.0% 6.8% $80,000 $102,201 79.0% 5.0% $95,450 $100,049 84.6% 0.9% $40,180 $103,032 96.5% 20.7% $70,000 $96,000 92.5% 6.5% $75,279 $93,461 91.0% 4.4% $82,000 $92,517 83.0% 2.4% $82,000 $91,814 94.0% 2.3% $54,000 $91,500 89.6% 11.1% $9,938 $21,860 95.0% 17.1% $26,500 $73,000 63.6% 22.5%

Rated of return 33.9% 37.5% 37.5% 44.6% 27.0% 59.7% 43.9% 32.3% 35.4% 34.6% 58.5% 35.6% 25.0% 40.6% 24.8% 66.5% 69.8% 58.2% 54.4% 33.2% 29.8% 59.5% 33.4% 28.7% 31.9% 49.8% 47.6% 42.0% 35.5% 26.6% 37.1% 23.4% 52.4% 30.3% 27.8% 34.5% 50.3% 58.4% 42.3% 59.8% 45.8% 31.1% 49.5% 75.7% 42.0% 29.9% 35.3% 33.2% 26.7% 62.6% 53.4% 39.0% 33.0% 28.3% 44.2% 28.7% 72.4% 27.2%

Lifetimes Earnning potantial Non-MBA MBA MBA premium $3,748,572 $6,086,216 $2,317,559 $3,123,810 $5,974,961 $2,834,414 $3,436,191 $5,924,502 $2,469,900 $3,123,810 $5,917,738 $2,777,191 $3,748,572 $5,904,468 $2,135,811 $2,499,048 $5,874,634 $3,362,196 $2,686,477 $5,689,915 $2,989,044 $3,123,810 $5,687,090 $2,546,543 $3,123,810 $5,613,538 $2,472,991 $3,123,810 $5,589,935 $2,449,388 $2,499,048 $5,561,201 $3,048,763 $3,748,572 $5,542,891 $1,774,234 $3,748,572 $5,534,148 $1,765,491 $3,123,810 $5,523,016 $2,382,469 $3,748,572 $5,474,294 $1,705,638 $3,673,267 $5,459,730 $1,766,782 $2,499,048 $5,362,735 $2,850,297 $3,123,810 $5,351,413 $2,210,865 $3,125,848 $5,273,915 $2,131,319 $3,998,477 $5,272,859 $1,252,958 $3,311,239 $5,253,755 $1,924,775 $1,874,286 $5,206,377 $3,322,049 $3,123,810 $5,139,583 $1,999,036 $3,436,191 $5,122,715 $1,668,113 $3,436,191 $5,096,668 $1,642,066 $3,708,480 $5,090,710 $1,362,359 $3,123,810 $5,068,467 $1,927,920 $3,308,707 $5,037,574 $1,711,139 $3,123,810 $4,974,881 $1,834,334 $3,748,572 $4,888,175 $1,119,518 $3,373,715 $4,867,494 $1,475,703 $3,873,524 $4,833,540 $939,261 $1,286,593 $4,806,700 $3,513,213 $3,280,001 $4,745,686 $1,448,111 $3,726,081 $4,742,216 $996,171 $2,811,429 $4,679,901 $1,853,408 $2,927,456 $4,627,277 $1,684,135 $2,827,135 $4,622,217 $1,779,934 $2,744,490 $4,555,205 $1,796,010 $1,754,139 $4,524,901 $2,761,363 $858,744 $4,481,949 $3,606,368 $3,123,810 $4,464,910 $1,324,363 $2,827,135 $4,394,323 $1,552,040 $2,577,217 $4,297,967 $1,706,941 $3,123,810 $4,263,270 $1,122,722 $2,748,953 $4,249,943 $1,486,261 $3,602,922 $4,245,719 $623,493 $3,345,351 $4,244,686 $881,411 $3,377,092 $4,186,736 $791,550 $3,105,913 $4,149,579 $1,027,024 $1,012,215 $4,085,125 $3,067,486 $2,967,620 $3,916,807 $933,287 $2,833,226 $3,835,159 $986,752 $3,222,043 $3,818,837 $579,530 $2,754,327 $3,791,661 $1,022,576 $2,186,667 $3,692,337 $1,493,953 $357,810 $3,585,559 $3,220,734 $1,624,381 $2,886,882 $1,253,797

BUSINESS EDUCATION

Business school rankings

MBA Premium

Annual Rank University School Location Country tuition 1 Harvard University Harvard Business School Boston, MA United States $73,440 2 INSEAD Fontainbleau France 3 University of Pennsylvania The Wharton School Philadelphia, PA United States $78,948 4 Columbia University Columbia Business School New York, NY United States $74,400 5 University of California Berkeley Haas School of Business Berkeley, CA United States $61,506 6 Stanford University Graduate School of Business Stanford, CA United States $70,590 7 University of Chicago Booth School of Business Chicago, IL United States $72,000 8 IMD Lausanne Switzerland 9 Dartmouth College Tuck School of Business Hanover, NH United States $72,150 10 Northwestern University Kellogg School of Management Evanston, IL United States $71,544 11 University of London London Business School London United Kingdom 12 Massachusetts Institute of Technology Sloan School of Management Cambridge, MA United States $74,200 13 Duke University Fuqua School of Business Durham, NC United States $68,200 14 New York University Stern School of Business New York, NY United States $71,676 15 Emoriy University Goizueta School of Business Atlanta, GA United States $64,128 16 University of California Los Angeles Anderson School of Management Los Angeles, CA United States $59,866 17 University of Virginia Darden School of Business Charlottesville, VA United States $68,510 18 University of Navarra IESE Business School Barcelona Spain 19 Lahore University of Management Sciences Dawood School of Business Lahore Pakistan $5,496 20 Yale University School of Management New Haven, CT United States $66,650 21 Shanghai Jiaotong University Antai College of Management Shanghai China $21,560 22 University of Western Ontario Ivey Business School London, ON Canada 23 Cornell University Johnson School of Management Ithaca, NY United States $66,290 24 Bocconi University SDA Bocconi School of Management Milan Italy 25 China Europe International Business School Shanghai China 26 National University of Singapore NUS Business School Singapore Singapore 27 Carnegie Mellon University Tepper School of Business Pittsburgh, PA United States $65,000 28 IE University IE Business School Madrid Spain 29 University of Iowa Tippie School of Business Iowa City, IA United States $40,134 30 Institute of Business Administration Karachi Pakistan $3,464 31 University of St Gallen St Gallen, SG Switzerland 32 Ramon Llull University ESADE Barcelona Spain 33 Boston College Carroll School of Management Chestnut Hill, MA United States $51,200 34 Fudan University School of Management Shanghai China $18,886 35 Rice University Jones Graduate School of Business Houston, TX United States $58,000 36 University of Oklahoma Price School of Business Norman, OK United States 37 Purdue University Krannert School of Management West Lafayette, IN United States $42,464 38 Vanderbilt University Owen School of Business Nashville, TN United States $56,150 39 Arizona State University Carey School of Business Tempe, AZ United States $50,550 40 Pennsylvania State University Smeal School of Business University Park, PA United States $41,822 41 Brigham Young University Marriott School of Business Provo, UT United States $26,120 42 Georgetown University McDonough School of Business Washington, DC United States $61,902 43 University of Oxford Said School of Business Oxford United Kingdom 44 University of Texas-Austin McCombs School of Business Austin, TX United States $54,924 45 University of Michigan Ann Arbor Ross School of Business Ann Arbor, MI United States $68,646 46 University of Washington Foster School of Business Seattle, WA United States $48,333 47 University of Cambridge Judge School of Business Cambridge United Kingdom 48 University of Manchester Alliance Manchester Business School Manchester United Kingdom 49 Michigan State University Broad School of Business East Lansing, MI United States $50,633 50 University of Rochester Simon School of Business Rochester, NY United States $46,000 51 University of California Irvine Merage School of Business Irvine, CA United States $51,480

Total tuition $146,880 $98,948 $157,896 $148,800 $123,012 $141,180 $144,000 $85,000 $144,300 $143,088 $102,549 $148,400 $136,400 $143,352 $128,256 $119,732 $137,020 $101,415 $10,992 $133,300 $43,120 $84,737 $132,580 $65,600 $57,120 $45,260 $130,000 $83,065 $80,268 $6,928 $56,500 $85,092 $102,400 $37,772 $116,000 $54,000 $84,928 $112,300 $101,100 $83,644 $52,240 $123,804 $71,852 $109,848 $137,292 $96,666 $71,852 $57,640 $101,266 $92,000 $102,960

Annual all-in cost $109,124 $111,900 $110,978 $96,598 $115,797 $108,683 $107,200 $103,350 $111,570 $94,385 $113,166 $88,835 $98,699 $96,276 $7,313 $93,900 $38,360 $92,190 $88,378 $58,866 $5,624 $74,535 $35,686 $88,424 $62,464 $82,900 $72,350 $66,368 $47,456 $93,020 $77,644 $92,834 $78,829 $73,720 $68,187 $69,480

Total all-in cost $218,248 $126,562 $223,800 $221,956 $193,196 $231,594 $217,366 $121,000 $214,400 $206,700 $159,180 $223,140 $188,770 $226,332 $177,670 $197,398 $192,552 $147,319 $14,626 $187,800 $76,720 $105,311 $184,380 $89,078 $67,200 $70,390 $176,756 $112,057 $117,732 $11,248 $69,500 $134,474 $149,070 $71,372 $176,848 $70,000 $124,928 $165,800 $144,700 $132,736 $94,912 $186,040 $91,985 $155,288 $185,668 $157,658 $91,985 $70,740 $147,440 $136,374 $138,960

Pre-MBA salary $85,000 $66,000 $85,000 $80,000 $86,250 $85,000 $80,000 $80,000 $80,000 $79,000 $75,000 $70,000 $65,000 $75,000 $58,000 $72,000 $70,000 $52,000 $8,484 $75,000 $20,593 $56,000 $70,000 $51,000 $40,000 $30,000 $65,000 $63,000 $47,500 $3,535 $60,000 $50,000 $60,000 $16,202 $55,000 $40,000 $50,000 $66,000 $50,000 $43,000 $50,000 $65,000 $66,000 $72,000 $70,000 $55,000 $70,000 $40,000 $50,000 $54,500 $58,000

Post-MBA 6-Year Job placement 5Y Salary salary later rate CAGR $150,000 $280,000 90.6% 13.3% $120,000 $239,000 82.3% 14.8% $150,000 $262,500 95.5% 11.8% $140,000 $250,000 92.3% 12.3% $135,000 $260,000 90.6% 14.0% $155,000 $255,000 82.4% 10.5% $140,000 $242,000 95.2% 11.6% $157,000 $240,000 81.8% 8.9% $135,000 $236,500 95.6% 11.9% $135,000 $230,000 95.0% 11.2% $133,500 $220,000 93.6% 10.5% $140,000 $210,000 92.5% 8.4% $124,000 $200,000 91.6% 10.0% $125,000 $213,000 91.8% 11.2% $106,000 $185,600 93.1% 11.9% $115,000 $207,000 87.7% 12.5% $123,000 $202,000 90.2% 10.4% $115,500 $170,000 95.3% 8.0% $12,422 $27,325 95.0% 17.1% $130,000 $205,000 89.9% 9.5% $43,246 $121,635 70.0% 23.0% $85,000 $173,500 81.6% 15.3% $123,500 $192,000 90.1% 9.2% $100,000 $162,500 88.8% 10.2% $70,000 $147,000 92.7% 16.0% $61,064 $130,369 95.5% 16.4% $110,000 $183,250 85.2% 10.7% $101,000 $180,000 88.9% 12.3% $90,000 $154,000 80.4% 11.3% $9,938 $21,860 95.0% 17.1% $130,000 $169,350 75.7% 5.4% $100,000 $155,100 82.7% 9.2% $100,000 $170,000 87.7% 11.2% $40,180 $103,032 96.5% 20.7% $105,000 $160,500 84.2% 8.9% $73,500 $138,500 74.1% 13.5% $90,000 $153,000 81.5% 11.2% $104,000 $177,000 90.1% 11.2% $95,500 $151,500 95.1% 9.7% $97,500 $139,800 88.9% 7.5% $98,500 $151,000 89.1% 8.9% $113,000 $174,000 90.3% 9.0% $120,000 $175,000 79.9% 7.8% $115,000 $184,500 89.2% 9.9% $125,000 $180,000 91.8% 7.6% $100,000 $157,000 98.0% 9.4% $120,000 $178,500 89.0% 8.3% $89,000 $132,000 75.6% 8.2% $100,000 $147,000 95.5% 8.0% $88,000 $155,000 95.2% 12.0% $90,000 $160,000 91.4% 12.2%

Rate of return 41.3% 55.8% 38.4% 37.1% 38.1% 37.5% 36.6% 64.4% 35.1% 35.5% 43.3% 35.9% 37.9% 30.7% 36.5% 32.2% 34.8% 46.5% 45.8% 34.9% 52.4% 42.7% 34.2% 59.5% 59.7% 59.5% 33.2% 43.4% 44.4% 72.4% 91.0% 42.2% 35.2% 53.4% 33.5% 58.5% 40.2% 31.4% 37.6% 43.9% 53.9% 30.9% 56.9% 33.6% 32.1% 34.3% 53.2% 69.8% 37.5% 34.2% 33.1%

Lifetimes Earnning potantial Non-MBA MBA MBA premium $5,310,477 $11,247,673 $5,908,742 $4,123,429 $9,572,998 $5,427,475 $5,310,477 $10,576,382 $5,237,451 $4,998,096 $10,063,150 $5,038,274 $5,388,572 $10,429,571 $5,012,127 $5,310,477 $10,305,004 $4,966,074 $4,998,096 $9,756,146 $4,731,270 $4,998,096 $9,734,987 $4,710,112 $4,998,096 $9,528,338 $4,503,462 $4,935,620 $9,278,835 $4,316,770 $4,685,715 $8,889,850 $4,179,029 $4,373,334 $8,526,540 $4,129,773 $4,060,953 $8,090,327 $4,007,615 $4,685,715 $8,592,936 $3,882,115 $3,623,620 $7,477,814 $3,834,779 $4,498,286 $8,329,186 $3,806,798 $4,373,334 $8,163,889 $3,767,122 $3,248,762 $6,909,354 $3,643,185 $858,744 $4,481,949 $3,606,368 $4,685,715 $8,302,033 $3,591,212 $1,286,593 $4,806,700 $3,513,213 $3,498,667 $6,942,053 $3,424,640 $4,373,334 $7,781,215 $3,384,448 $3,186,286 $6,570,936 $3,367,578 $2,499,048 $5,874,634 $3,362,196 $1,874,286 $5,206,377 $3,322,049 $4,060,953 $7,400,889 $3,318,178 $3,936,001 $7,246,141 $3,289,052 $2,967,620 $6,211,484 $3,227,964 $357,810 $3,585,559 $3,220,734 $3,748,572 $6,929,681 $3,161,024 $3,123,810 $6,286,523 $3,145,975 $3,748,572 $6,858,991 $3,090,334 $1,012,215 $4,085,125 $3,067,486 $3,436,191 $6,510,293 $3,055,691 $2,499,048 $5,561,201 $3,048,763 $3,123,810 $6,173,092 $3,032,545 $4,123,429 $7,141,029 $2,995,507 $3,123,810 $6,133,542 $2,992,995 $2,686,477 $5,689,915 $2,989,044 $3,123,810 $6,124,031 $2,983,483 $4,060,953 $7,055,208 $2,972,496 $4,123,429 $7,116,077 $2,970,555 $4,498,286 $7,465,319 $2,942,931 $4,373,334 $7,324,375 $2,927,608 $3,436,191 $6,359,567 $2,904,965 $4,373,334 $7,250,756 $2,853,990 $2,499,048 $5,362,735 $2,850,297 $3,123,810 $5,974,961 $2,834,414 $3,404,953 $6,243,186 $2,819,990 $3,623,620 $6,441,762 $2,798,727

BUSINESS EDUCATION

Annual Rank University School Location Country tuition 52 University of Georgia Terry School of Business Athens, GA United States $32,112 53 Singapore Management University Lee Kong Chian Singapore Singapore 54 Southern Methodist University Cox School of Business Dallas, TX United States $45,975 55 University of Notre Dame Mendoza College of Business Notre Dame, IN United States $54,120 56 Washington University in St Louis Olin School of Business St Louis, MO United States $59,950 57 University of North Carolina Kenan-Flagler School of Business Chapel Hill, NC United States $64,182 58 University of Southern California Marshall School of Business Los Angeles, CA United States $62,140 59 Ohio State University Fisher School of Business Columbus, OH United States $48,563 60 Fordham University Gabelli School of Business New York, NY United States $50,835 61 University of Toronto Rotman School of Management Toronto, ON Canada $45,858 62 Georgia Institute of Technology Scheller School of Business Atlanta, GA United States $42,196 63 Rutgers University School of Business Piscataway, NJ United States $45,689 64 University of Minnesota Carlson School of Management Minneapolis, MN United States $56,670 65 HEC Paris Paris France 66 Indiana University Kelley School of Business Bloomington, IN United States $49,955 67 University of Wisconsin Wisconsin Business School Madison, WI United States $40,459 68 Cranfield University Cranfield School of Management Cranfield United Kingdom 69 Texas A&M University Mays Business School College Station, TX United States $55,443 70 University of Hong Kong Hong Kong China 71 Hong Kong University of Science and Technology HKUST Business School Hong Kong China 72 University of Florida Hough School of Business Gainesville, FL United States $30,630 73 University of Melbourne Melbourne Business School Melbourne, VIC Australia 74 University of Warwick Warwick Business School Coventry United Kingdom 75 College of William & Mary Mason School of Business Williamsburg, VA United States $44,480 76 Hult International Business School Cambridge, MA United States 77 McGill University Desautels Faculty of Management Montreal, QC Canada $35,673 78 WHU Beisheim School of Management Vallandar, RP Germany $1 79 University of Edinburgh Business School Edinburgh United Kingdom 80 Imperial College London Imperial College Business School London United Kingdom 81 Nanyang Technological University Nanyang Business School Singapore Singapore 82 University of Maryland Smith School of Business College Park, MD United States $56,261 83 Chinese University of Hong Kong Business School Hong Kong China 84 Durham University Business School Durham United Kingdom 85 Boston University Questrom School of Business Boston, MA United States $51,966 86 The Lisbon MBA Lisbon Portugal 87 University of Illinois at Urbana-Champaign School of Business Urbana-Champaign, IL United States $41,388 88 University of Texas-Dallas Jindal School of Business Dallas, TX United States $35,156 89 Edhec Business School Lille France 90 State University of New York at Buffalo School of Management Buffalo, NY United States $28,639 91 City University of New York Zicklin School of Business New York, NY United States $28,278 92 University of Mannheim Mannheim Business School Mannheim, BW Germany 93 University of Utah Eccles School of Business Salt Lake City, UT United States $30,000 94 City University of London Cass School of Business London United Kingdom 95 Erasmus University Rotterdam School of Management Rotterdam Netherlands 96 ESIC Business & Marketing School Seville Spain 97 Copenhagen Business School Copenhagen Denmark 98 HEC Montreal Montreal, QC Canada 99 Queenâ&#x20AC;&#x2122;s University Smith School of Business Kingston, ON Canada 100 Leeds University Business School Leeds United Kingdom 101 University of Strathclyde Strathclyde Business School Glasgow United Kingdom 102 University of New South Wales Australian Graduate School of Management Sydney, NSW Australia 103 University of Bath School of Management Bath United Kingdom 104 ESMT Berlin Berlin, BE Germany 105 Ryerson University Rogers School of Management Toronto, ON Canada 106 Lancaster University School of Management Lancaster United Kingdom 107 University of Paris-Seine Essec Business School Cergy-Pontoise France 108 University College Dublin Smurfit Graduate Business School Dublin Ireland 109 EMLyon Business School Paris France

Total tuition $64,224 $47,249 $91,950 $108,240 $119,900 $128,364 $124,280 $97,126 $101,670 $91,717 $84,392 $91,378 $113,339 $79,925 $99,910 $80,918 $51,090 $110,886 $71,760 $75,000 $61,260 $63,545 $52,335 $88,960 $80,150 $71,345 $44,850 $40,217 $68,120 $45,260 $112,522 $72,280 $39,300 $103,932 $43,700 $82,776 $60,744 $50,600 $57,277 $56,556 $51,603 $60,000 $57,640 $58,075 $35,666 $50,899 $25,840 $70,680 $37,990 $41,200 $59,640 $49,125 $65,320 $32,813 $39,955 $51,750 $39,675 $44,275

Business school rankings

Adjusted MBA Premium

Annual Rank University School Location Country tuition 1 IMD Lausanne Switzerland 2 INSEAD Fontainbleau France 3 University of London London Business School London United Kingdom 4 Harvard University Harvard Business School Boston, MA United States $73,440 5 University of Pennsylvania The Wharton School Philadelphia, PA United States $78,948 6 University of California Berkeley Haas School of Business Berkeley, CA United States $61,506 7 Stanford University Graduate School of Business Stanford, CA United States $70,590 8 Columbia University Columbia Business School New York, NY United States $74,400 9 Lahore University of Management Sciences Dawood School of Business Lahore Pakistan $5,496 10 University of Chicago Booth School of Business Chicago, IL United States $72,000 11 Dartmouth College Tuck School of Business Hanover, NH United States $72,150 12 Northwestern University Kellogg School of Management Evanston, IL United States $71,544 13 Institute of Business Administration Karachi Pakistan $3,464 14 University of Cambridge Judge School of Business Cambridge United Kingdom 15 IE University IE Business School Madrid Spain 16 University of Oxford Said School of Business Oxford United Kingdom 17 University of Western Ontario Ivey Business School London, ON Canada 18 University of St Gallen St Gallen, SG Switzerland 19 University of Navarra IESE Business School Barcelona Spain 20 New York University Stern School of Business New York, NY United States $71,676 21 Massachusetts Institute of Technology Sloan School of Management Cambridge, MA United States $74,200 22 University of California Los Angeles Anderson School of Management Los Angeles, CA United States $59,866 23 Yale University School of Management New Haven, CT United States $66,650 24 University of Virginia Darden School of Business Charlottesville, VA United States $68,510 25 Bocconi University SDA Bocconi School of Management Milan Italy 26 Duke University Fuqua School of Business Durham, NC United States $68,200 27 Cornell University Johnson School of Management Ithaca, NY United States $66,290 28 University of Melbourne Melbourne Business School Melbourne, VIC Australia 29 Ramon Llull University ESADE Barcelona Spain 30 Hong Kong University of Science and Technology HKUST Business School Hong Kong China 31 Emoriy University Goizueta School of Business Atlanta, GA United States $64,128 32 University of Texas-Austin McCombs School of Business Austin, TX United States $54,924 33 Carnegie Mellon University Tepper School of Business Pittsburgh, PA United States $65,000 34 University of Michigan Ann Arbor Ross School of Business Ann Arbor, MI United States $68,646 35 Fordham University Gabelli School of Business New York, NY United States $50,835 36 Vanderbilt University Owen School of Business Nashville, TN United States $56,150 37 University of Southern California Marshall School of Business Los Angeles, CA United States $62,140 38 China Europe International Business School Shanghai China 39 Georgetown University McDonough School of Business Washington, DC United States $61,902 40 Boston College Carroll School of Management Chestnut Hill, MA United States $51,200 41 University of North Carolina Kenan-Flagler School of Business Chapel Hill, NC United States $64,182 42 University of Notre Dame Mendoza College of Business Notre Dame, IN United States $54,120 43 University of Toronto Rotman School of Management Toronto, ON Canada $45,858 44 Imperial College London Imperial College Business School London United Kingdom 45 HEC Paris Paris France 46 Rice University Jones Graduate School of Business Houston, TX United States $58,000 47 University of California Irvine Merage School of Business Irvine, CA United States $51,480 48 Nanyang Technological University Nanyang Business School Singapore Singapore 49 Washington University in St Louis Olin School of Business St Louis, MO United States $59,950 50 University of Washington Foster School of Business Seattle, WA United States $48,333 51 University of Manchester Alliance Manchester Business School Manchester United Kingdom

Total tuition $85,000 $98,948 $102,549 $146,880 $157,896 $123,012 $141,180 $148,800 $10,992 $144,000 $144,300 $143,088 $6,928 $71,852 $83,065 $71,852 $84,737 $56,500 $101,415 $143,352 $148,400 $119,732 $133,300 $137,020 $65,600 $136,400 $132,580 $63,545 $85,092 $75,000 $128,256 $109,848 $130,000 $137,292 $101,670 $112,300 $124,280 $57,120 $123,804 $102,400 $128,364 $108,240 $91,717 $68,120 $79,925 $116,000 $102,960 $45,260 $119,900 $96,666 $57,640

Annual all-in cost $109,124 $111,900 $96,598 $115,797 $110,978 $7,313 $108,683 $107,200 $103,350 $5,624 $113,166 $111,570 $98,699 $93,900 $96,276 $94,385 $92,190 $88,835 $77,644 $88,378 $92,834 $85,905 $82,900 $98,955 $93,020 $74,535 $89,220 $74,120 $64,711 $88,424 $69,480 $89,359 $78,829

Total all-in cost $121,000 $126,562 $159,180 $218,248 $223,800 $193,196 $231,594 $221,956 $14,626 $217,366 $214,400 $206,700 $11,248 $91,985 $112,057 $91,985 $105,311 $69,500 $147,319 $226,332 $223,140 $197,398 $187,800 $192,552 $89,078 $188,770 $184,380 $82,005 $134,474 $102,829 $177,670 $155,288 $176,756 $185,668 $171,810 $165,800 $197,910 $67,200 $186,040 $149,070 $178,440 $148,240 $129,422 $88,451 $108,675 $176,848 $138,960 $70,390 $178,718 $157,658 $70,740

Pre-MBA salary $80,000 $66,000 $75,000 $85,000 $85,000 $86,250 $85,000 $80,000 $8,484 $80,000 $80,000 $79,000 $3,535 $70,000 $63,000 $66,000 $56,000 $60,000 $52,000 $75,000 $70,000 $72,000 $75,000 $70,000 $51,000 $65,000 $70,000 $68,500 $50,000 $65,000 $58,000 $72,000 $65,000 $70,000 $75,000 $66,000 $71,000 $40,000 $65,000 $60,000 $65,000 $63,000 $50,000 $60,000 $50,000 $55,000 $58,000 $58,795 $60,000 $55,000 $40,000

Post-MBA 6-Year Job placement 5Y Salary salary later rate CAGR $157,000 $240,000 81.8% 8.9% $120,000 $239,000 82.3% 14.8% $133,500 $220,000 93.6% 10.5% $150,000 $280,000 90.6% 13.3% $150,000 $262,500 95.5% 11.8% $135,000 $260,000 90.6% 14.0% $155,000 $255,000 82.4% 10.5% $140,000 $250,000 92.3% 12.3% $12,422 $27,325 95.0% 17.1% $140,000 $242,000 95.2% 11.6% $135,000 $236,500 95.6% 11.9% $135,000 $230,000 95.0% 11.2% $9,938 $21,860 95.0% 17.1% $120,000 $178,500 89.0% 8.3% $101,000 $180,000 88.9% 12.3% $120,000 $175,000 79.9% 7.8% $85,000 $173,500 81.6% 15.3% $130,000 $169,350 75.7% 5.4% $115,500 $170,000 95.3% 8.0% $125,000 $213,000 91.8% 11.2% $140,000 $210,000 92.5% 8.4% $115,000 $207,000 87.7% 12.5% $130,000 $205,000 89.9% 9.5% $123,000 $202,000 90.2% 10.4% $100,000 $162,500 88.8% 10.2% $124,000 $200,000 91.6% 10.0% $123,500 $192,000 90.1% 9.2% $110,000 $154,500 96.3% 7.0% $100,000 $155,100 82.7% 9.2% $99,000 $152,500 90.0% 9.0% $106,000 $185,600 93.1% 11.9% $115,000 $184,500 89.2% 9.9% $110,000 $183,250 85.2% 10.7% $125,000 $180,000 91.8% 7.6% $97,500 $180,000 72.3% 13.0% $104,000 $177,000 90.1% 11.2% $108,000 $175,000 91.5% 10.1% $70,000 $147,000 92.7% 16.0% $113,000 $174,000 90.3% 9.0% $100,000 $170,000 87.7% 11.2% $110,000 $165,500 90.4% 8.5% $100,000 $166,000 89.7% 10.7% $89,250 $138,500 80.3% 9.2% $90,000 $136,600 90.0% 8.7% $91,000 $136,000 91.9% 8.4% $105,000 $160,500 84.2% 8.9% $90,000 $160,000 91.4% 12.2% $117,000 $132,288 98.0% 2.5% $99,000 $158,500 96.3% 9.9% $100,000 $157,000 98.0% 9.4% $89,000 $132,000 75.6% 8.2%

Rate of return 64.4% 55.8% 43.3% 41.3% 38.4% 38.1% 37.5% 37.1% 45.8% 36.6% 35.1% 35.5% 72.4% 53.2% 43.4% 56.9% 42.7% 91.0% 46.5% 30.7% 35.9% 32.2% 34.9% 34.8% 59.5% 37.9% 34.2% 45.7% 42.2% 35.9% 36.5% 33.6% 33.2% 32.1% 24.9% 31.4% 25.6% 59.7% 30.9% 35.2% 29.4% 32.4% 35.4% 35.6% 40.6% 33.5% 33.1% 66.5% 28.4% 34.3% 69.8%

Lifetimes Earnning potantial (ajusted) Non-MBA MBA MBA premium $4,033,754 $9,734,987 $5,701,234 $4,033,754 $9,572,998 $5,539,244 $4,033,754 $8,889,850 $4,856,096 $4,033,754 $8,630,326 $4,596,573 $4,033,754 $8,188,345 $4,154,592 $4,033,754 $8,091,685 $4,057,931 $4,033,754 $8,009,669 $3,975,915 $4,033,754 $7,850,432 $3,816,678 $858,744 $4,481,949 $3,623,205 $4,033,754 $7,648,299 $3,614,545 $4,033,754 $7,498,309 $3,464,555 $4,033,754 $7,334,035 $3,300,281 $357,810 $3,585,559 $3,227,749 $4,033,754 $7,250,756 $3,217,002 $4,033,754 $7,246,141 $3,212,387 $4,033,754 $7,116,077 $3,082,323 $4,033,754 $6,942,053 $2,908,299 $4,033,754 $6,929,681 $2,895,927 $4,033,754 $6,909,354 $2,875,600 $4,033,754 $6,882,436 $2,848,683 $4,033,754 $6,838,721 $2,804,967 $4,033,754 $6,708,782 $2,675,028 $4,033,754 $6,690,905 $2,657,151 $4,033,754 $6,599,950 $2,566,196 $4,033,754 $6,570,936 $2,537,182 $4,033,754 $6,551,517 $2,517,763 $4,033,754 $6,347,996 $2,314,242 $4,033,754 $6,295,294 $2,261,540 $4,033,754 $6,286,523 $2,252,769 $4,033,754 $6,183,323 $2,149,569 $4,033,754 $6,148,236 $2,114,482 $4,033,754 $6,140,009 $2,106,255 $4,033,754 $6,097,588 $2,063,834 $4,033,754 $6,047,211 $2,013,457 $4,033,754 $5,987,904 $1,954,150 $4,033,754 $5,926,495 $1,892,742 $4,033,754 $5,884,602 $1,850,848 $4,033,754 $5,874,634 $1,840,880 $4,033,754 $5,869,990 $1,836,236 $4,033,754 $5,740,800 $1,707,046 $4,033,754 $5,648,404 $1,614,650 $4,033,754 $5,639,666 $1,605,912 $4,033,754 $5,613,538 $1,579,784 $4,033,754 $5,542,891 $1,509,137 $4,033,754 $5,523,016 $1,489,262 $4,033,754 $5,511,216 $1,477,462 $4,033,754 $5,466,095 $1,432,341 $4,033,754 $5,459,730 $1,425,976 $4,033,754 $5,447,795 $1,414,041 $4,033,754 $5,411,978 $1,378,224 $4,033,754 $5,362,735 $1,328,981

BUSINESS EDUCATION

Rank University School Location Country 52 Cranfield University Cranfield School of Management Cranfield United Kingdom 53 University of Rochester Simon School of Business Rochester, NY United States 54 Rutgers University School of Business Piscataway, NJ United States 55 University of Iowa Tippie School of Business Iowa City, IA United States 56 Southern Methodist University Cox School of Business Dallas, TX United States 57 Purdue University Krannert School of Management West Lafayette, IN United States 58 University of Hong Kong Hong Kong China 59 Copenhagen Business School Copenhagen Denmark 60 Arizona State University Carey School of Business Tempe, AZ United States 61 Brigham Young University Marriott School of Business Provo, UT United States 62 Indiana University Kelley School of Business Bloomington, IN United States 63 University of Wisconsin Wisconsin Business School Madison, WI United States 64 National University of Singapore NUS Business School Singapore Singapore 65 Michigan State University Broad School of Business East Lansing, MI United States 66 Georgia Institute of Technology Scheller School of Business Atlanta, GA United States 67 University of Georgia Terry School of Business Athens, GA United States 68 Texas A&M University Mays Business School College Station, TX United States 69 City University of London Cass School of Business London United Kingdom 70 University of Warwick Warwick Business School Coventry United Kingdom 71 Chinese University of Hong Kong Business School Hong Kong China 72 McGill University Desautels Faculty of Management Montreal, QC Canada 73 Pennsylvania State University Smeal School of Business University Park, PA United States 74 Ohio State University Fisher School of Business Columbus, OH United States 75 University of Minnesota Carlson School of Management Minneapolis, MN United States 76 Queenâ&#x20AC;&#x2122;s University Smith School of Business Kingston, ON Canada 77 University of Oklahoma Price School of Business Norman, OK United States 78 University of Maryland Smith School of Business College Park, MD United States 79 University of Mannheim Mannheim Business School Mannheim, BW Germany 80 ESMT Berlin Berlin, BE Germany 81 Boston University Questrom School of Business Boston, MA United States 82 Shanghai Jiaotong University Antai College of Management Shanghai China 83 University of New South Wales Australian Graduate School of Management Sydney, NSW Australia 84 College of William & Mary Mason School of Business Williamsburg, VA United States 85 The Lisbon MBA Lisbon Portugal 86 University of Edinburgh Business School Edinburgh United Kingdom 87 University of Florida Hough School of Business Gainesville, FL United States 88 University of Illinois at Urbana-Champaign School of Business Urbana-Champaign, IL United States 89 University of Texas-Dallas Jindal School of Business Dallas, TX United States 90 WHU Beisheim School of Management Vallandar, RP Germany 91 Singapore Management University Lee Kong Chian Singapore Singapore 92 Erasmus University Rotterdam School of Management Rotterdam Netherlands 93 Edhec Business School Lille France 94 University of Utah Eccles School of Business Salt Lake City, UT United States 95 Hult International Business School Cambridge, MA United States 96 Durham University Business School Durham United Kingdom 97 HEC Montreal Montreal, QC Canada 98 University College Dublin Smurfit Graduate Business School Dublin Ireland 99 Lancaster University School of Management Lancaster United Kingdom 100 University of Paris-Seine Essec Business School Cergy-Pontoise France 101 Leeds University Business School Leeds United Kingdom 102 Fudan University School of Management Shanghai China 103 City University of New York Zicklin School of Business New York, NY United States 104 Ryerson University Rogers School of Management Toronto, ON Canada 105 University of Bath School of Management Bath United Kingdom 106 EMLyon Business School Paris France 107 University of Strathclyde Strathclyde Business School Glasgow United Kingdom 108 State University of New York at Buffalo School of Management Buffalo, NY United States 109 ESIC Business & Marketing School Seville Spain

Annual tuition $46,000 $45,689 $40,134 $45,975 $42,464 $50,550 $26,120 $49,955 $40,459 $50,633 $42,196 $32,112 $55,443 $35,673 $41,822 $48,563 $56,670 $56,261 $51,966 $21,560 $44,480 $30,630 $41,388 $35,156 $1 $30,000 $18,886 $28,278 $28,639

Total tuition $51,090 $92,000 $91,378 $80,268 $91,950 $84,928 $71,760 $50,899 $101,100 $52,240 $99,910 $80,918 $45,260 $101,266 $84,392 $64,224 $110,886 $57,640 $52,335 $72,280 $71,345 $83,644 $97,126 $113,339 $70,680 $54,000 $112,522 $51,603 $65,320 $103,932 $43,120 $59,640 $88,960 $43,700 $40,217 $61,260 $82,776 $60,744 $44,850 $47,249 $58,075 $50,600 $60,000 $80,150 $39,300 $25,840 $39,675 $39,955 $51,750 $37,990 $37,772 $56,556 $32,813 $49,125 $44,275 $41,200 $57,277 $35,666

Annual all-in cost $68,187 $63,689 $58,866 $75,628 $62,464 $72,350 $47,456 $74,084 $64,077 $73,720 $60,932 $46,112 $79,777 $48,400 $66,368 $75,023 $74,960 $76,031 $69,966 $38,360 $62,660 $48,310 $64,042 $53,323 $44,000 $35,686 $55,604 $46,811

Total all-in cost $66,286 $136,374 $127,378 $117,732 $151,256 $124,928 $91,962 $72,184 $144,700 $94,912 $148,168 $128,154 $70,390 $147,440 $121,864 $92,224 $159,554 $77,971 $67,111 $92,482 $96,799 $132,736 $150,046 $149,919 $87,417 $70,000 $152,062 $67,933 $88,835 $139,932 $76,720 $83,097 $125,320 $64,400 $56,448 $96,620 $128,084 $87,995 $65,550 $72,379 $78,775 $64,400 $88,000 $107,350 $55,020 $43,320 $61,525 $52,400 $72,450 $53,710 $71,372 $111,208 $47,141 $72,705 $64,975 $64,780 $93,621 $56,376

Pre-MBA salary $50,000 $54,500 $60,000 $47,500 $55,000 $50,000 $50,033 $64,000 $50,000 $50,000 $60,000 $60,000 $30,000 $50,000 $55,000 $50,000 $60,000 $59,358 $50,000 $52,959 $50,000 $43,000 $50,000 $50,000 $60,000 $40,000 $60,000 $54,000 $62,000 $60,000 $20,593 $59,640 $53,000 $46,857 $45,251 $50,000 $55,000 $55,000 $43,929 $28,077 $50,000 $45,251 $52,500 $45,000 $41,251 $50,000 $57,669 $53,546 $54,054 $49,714 $16,202 $44,000 $47,500 $45,349 $51,572 $44,086 $35,000 $26,000

Post-MBA 6-Year Job placement 5Y Salary salary later rate CAGR $90,000 $131,623 74.3% 7.9% $88,000 $155,000 95.2% 12.0% $85,000 $154,700 96.3% 12.7% $90,000 $154,000 80.4% 11.3% $90,000 $154,000 83.3% 11.3% $90,000 $153,000 81.5% 11.2% $107,070 $128,245 85.0% 3.7% $91,000 $129,500 60.7% 7.3% $95,500 $151,500 95.1% 9.7% $98,500 $151,000 89.1% 8.9% $105,000 $150,000 94.0% 7.4% $98,700 $150,000 88.2% 8.7% $61,064 $130,369 95.5% 16.4% $100,000 $147,000 95.5% 8.0% $96,250 $146,000 94.5% 8.7% $82,500 $147,000 92.5% 12.2% $96,000 $145,500 93.8% 8.7% $111,000 $123,201 81.0% 2.1% $81,200 $125,000 86.4% 9.0% $97,578 $122,866 97.0% 4.7% $82,000 $122,500 81.0% 8.4% $97,500 $139,800 88.9% 7.5% $90,000 $140,350 93.3% 9.3% $100,000 $137,000 93.5% 6.5% $85,000 $120,000 78.0% 7.1% $73,500 $138,500 74.1% 13.5% $94,500 $136,000 80.0% 7.6% $78,500 $120,000 97.4% 8.9% $86,000 $118,500 80.9% 6.6% $89,000 $134,900 91.4% 8.7% $43,246 $121,635 70.0% 23.0% $88,750 $115,909 86.0% 5.5% $85,000 $129,500 80.6% 8.8% $82,000 $113,470 68.0% 6.7% $81,000 $113,420 82.0% 7.0% $73,600 $127,500 93.2% 11.6% $92,250 $125,500 89.5% 6.3% $78,500 $125,962 92.2% 9.9% $67,650 $112,794 82.0% 10.8% $65,700 $112,173 90.0% 11.3% $72,905 $110,000 88.0% 8.6% $81,000 $107,505 78.0% 5.8% $76,500 $117,000 91.2% 8.9% $80,000 $115,000 90.1% 7.5% $89,928 $104,306 89.0% 3.0% $70,000 $105,000 52.8% 8.4% $94,000 $102,643 93.0% 1.8% $75,000 $104,106 61.0% 6.8% $80,000 $102,201 79.0% 5.0% $95,450 $100,049 84.6% 0.9% $40,180 $103,032 96.5% 20.7% $78,000 $104,000 90.0% 5.9% $70,000 $96,000 92.5% 6.5% $75,279 $93,461 91.0% 4.4% $82,000 $92,517 83.0% 2.4% $82,000 $91,814 94.0% 2.3% $54,000 $91,500 89.6% 11.1% $26,500 $73,000 63.6% 22.5%

Rate of return 58.2% 34.2% 30.8% 44.4% 31.9% 40.2% 54.4% 33.2% 37.6% 53.9% 32.2% 33.9% 59.5% 37.5% 37.5% 44.6% 27.0% 49.8% 47.6% 42.0% 35.5% 43.9% 32.3% 34.6% 26.6% 58.5% 25.0% 37.1% 23.4% 24.8% 52.4% 27.8% 29.8% 50.3% 58.4% 33.4% 28.7% 31.9% 42.3% 59.8% 31.1% 49.5% 30.3% 34.5% 75.7% 42.0% 35.3% 33.2% 26.7% 62.6% 53.4% 29.9% 39.0% 33.0% 28.3% 44.2% 28.7% 27.2%

Lifetimes Earnning potantial (ajusted) Non-MBA MBA MBA premium $4,033,754 $5,351,413 $1,317,659 $4,033,754 $5,335,352 $1,301,598 $4,033,754 $5,321,116 $1,287,362 $4,033,754 $5,314,479 $1,280,725 $4,033,754 $5,314,479 $1,280,725 $4,033,754 $5,289,201 $1,255,447 $4,033,754 $5,273,915 $1,240,161 $4,033,754 $5,272,859 $1,239,105 $4,033,754 $5,263,162 $1,229,408 $4,033,754 $5,256,899 $1,223,145 $4,033,754 $5,245,212 $1,211,458 $4,033,754 $5,232,002 $1,198,248 $4,033,754 $5,206,377 $1,172,623 $4,033,754 $5,158,751 $1,124,998 $4,033,754 $5,125,529 $1,091,775 $4,033,754 $5,121,075 $1,087,322 $4,033,754 $5,112,338 $1,078,584 $4,033,754 $5,090,710 $1,056,956 $4,033,754 $5,068,467 $1,034,713 $4,033,754 $5,037,574 $1,003,820 $4,033,754 $4,974,881 $941,127 $4,033,754 $4,971,076 $937,322 $4,033,754 $4,969,216 $935,462 $4,033,754 $4,905,249 $871,495 $4,033,754 $4,888,175 $854,421 $4,033,754 $4,886,330 $852,576 $4,033,754 $4,868,518 $834,764 $4,033,754 $4,867,494 $833,740 $4,033,754 $4,833,540 $799,786 $4,033,754 $4,829,110 $795,356 $4,033,754 $4,806,700 $772,946 $4,033,754 $4,742,216 $708,462 $4,033,754 $4,683,906 $650,152 $4,033,754 $4,627,277 $593,523 $4,033,754 $4,622,217 $588,463 $4,033,754 $4,608,735 $574,981 $4,033,754 $4,597,629 $563,875 $4,033,754 $4,580,479 $546,725 $4,033,754 $4,555,205 $521,451 $4,033,754 $4,524,901 $491,147 $4,033,754 $4,464,910 $431,156 $4,033,754 $4,394,323 $360,569 $4,033,754 $4,349,391 $315,637 $4,033,754 $4,306,078 $272,324 $4,033,754 $4,297,967 $264,213 $4,033,754 $4,263,270 $229,516 $4,033,754 $4,245,719 $211,965 $4,033,754 $4,244,686 $210,932 $4,033,754 $4,186,736 $152,982 $4,033,754 $4,149,579 $115,825 $4,033,754 $4,085,125 $51,371 $4,033,754 $4,022,992 ($10,762) $4,033,754 $3,916,807 ($116,947) $4,033,754 $3,835,159 ($198,595) $4,033,754 $3,818,837 ($214,917) $4,033,754 $3,791,661 ($242,093) $4,033,754 $3,655,862 ($377,892) $4,033,754 $2,886,882 ($1,146,872)

BUSINESS EDUCATION

Muhammad Faran Bukhari

f you happen to drive through Lahore, you would notice the presence of a large number of restaurants and food outlets almost anywhere that you go. Be it the famous ‘siri paye’ from Gawalmandi or the restaurants at MM Alam Road serving fast food and foreign cuisines, the city offers a wide variety of food to choose from and for any young entrepreneur, the food business seems to be the go-to recipe for success. However, it is not just the conventional brick and mortar restaurants that have sprung up all across the city. The industry has also experienced the influx of a large number of homebased chefs, their task of marketing made simple by social media platforms that give them a way to reach out and market their products to consumers through the internet. That, in turn, creates the opportunity for enterprising food critics to capitalise on the need in the market to curate the wide variety of food available. Profit recently sat down with Asad Sheikh, a food enthusiast based in Lahore who owns and runs one such popular group on Facebook, named Foodies ‘R Us. The group currently has over 80,000 members and, as the name suggests, is a community of food enthusiasts that provides restaurants and home-based chefs a massive audience to market themselves to. Asad says that he was forced into starting the group by a few of his friends who wanted him to pursue his passion for

“WHEN THE GROUP STARTED THERE WAS NO BUSINESS MODEL. WE DON’T CHARGE A SINGLE PENNY FROM ANYONE. PEOPLE JUST EXPECT YOU TO GIVE ALL YOUR TIME AND MAKE NO MONEY. I SPEND EIGHT HOURS ON AVERAGE PER DAY ON MY GROUP PAGE AND GET PAID NOTHING FOR IT IN RETURN” Asad Sheikh, Founder, Foodies ‘R Us food. “My friends just created the group and wanted me to run it. They named it the Lahore Food Forum, however I wanted my group to be global. At that time, I came across Toys ‘R Us, and since I considered myself a foodie, I named the group Foodies ‘R Us,” he says. “We are particularly focused on supporting the home-based talents. We have so much talent around us like home-based women who can cook great food. Foodies ‘R Us gives them a

push and allows them and other restaurants to promote themselves for free.”

Penniless Success

efore starting Foodies ‘R Us, Asad used to spend most of his time working on his textile business. Now he mostly spends it working on his Facebook group. However, the group while helping restaurants and home-based chefs make money is not itself benefiting financially, claims Asad. “When the group started there was no business model. We don’t charge a single penny from anyone. People just expect you to give all your time and make no money. I spend eight hours on average per day on my group page and get paid nothing for it in return,” he complains. Asad’s dilemma is not only limited to himself, but is also relevant to internet giants of the likes WhatsApp. WhatsApp, which was acquired by Facebook for a record $19 billion, has still not worked out a profitable revenue generation model. However, Asad believes that a change in Facebook policies might help him generate revenue from his group. “Facebook is coming to that side. It wants most engaged groups to monetise and charge members so that group admins can improve the content that they are providing. When this happens, I will also monetise my group,” he says.

The CokeFest revolution

owever, what happens in the future is yet to be seen. For the time being, Asad has found two ways to earn money, both

SOCIAL MEDIA

of which are only indirectly related to the group. First, he says that Foodies ‘R Us collaborates with food brands occasionally, through which it is able to make money. He refuses to share details but makes it clear that these collaborations do not involve taking money from members. Then there is Coke Fest, a food festival, that is itself no less than a revolution in the Pakistani food industry. The festival is organised by Foodies ‘R Us in different cities all over Pakistan in collaboration with Coca Cola Pakistan. During the three days that the festival lasts, hundreds of food stalls run by restaurants and home-based chefs offer food to the attendees, while famous musicians and singers perform on the stage. “I had been pursuing the idea of a food festival since 2014, which finally materialised in February 2017 with Coca Cola being our main sponsor. The idea is to bring street food or home-based chefs whose food not a lot of people have tried to the forefront, which serves as a surprise element. We rent out spots to these people and the attendees have to buy entry tickets,” says Asad Sheikh. Almost 60,000 people attended the last CokeFest which means that the festival earned Rs24 million from entry tickets alone, taking into account the Rs400 price tag. The income generated from renting out spots was in addition to that. The CokeFest model seems similar to what Rozee.pk did when it first started off. Even though the job portal offered the majority of its services online, it earned a major chunk of its revenue through the on-the-ground job fairs that it organised. For Coca Cola, the festival seems to be working as well. “It gives a different dimension to what the brand is

doing. There are not many opportunities people have of getting to enjoy the outdoors with music. We have 30,000 to 40,000 people attending every event in every city that we go to. The event being an off shot of the music activities we do, is becoming a strong pillar of the marketing activities we do every year,” says Fahad Qadir, the Director Public Affairs and Communications for Pakistan and Afghanistan at Coca-Cola. Not everybody’s cup of tea The large influx of restaurants and home-based entrepreneurs in the local food market is good for the economy, but Asad Sheikh feels that food businesses might not be everyone’s cup of tea, simply for the reason that the industry has one of the highest failure rates. “A relative of mine wanted to start up a restaurant and she called me asking for advice. When I asked her why she wanted venture into this business she had no answer other

THE GROUP CURRENTLY HAS OVER 80,000 MEMBERS AND, AS THE NAME SUGGESTS, IS A COMMUNITY OF FOOD ENTHUSIASTS THAT PROVIDES RESTAURANTS AND HOME-BASED CHEFS A MASSIVE AUDIENCE TO MARKET THEMSELVES TO. ASAD SAYS THAT HE WAS FORCED INTO STARTING THE GROUP BY A FEW OF HIS FRIENDS WHO WANTED HIM TO PURSUE HIS PASSION FOR FOOD 38

than that she had money lying around and wanted to invest it somewhere. I suggested her to invest the money into safer investments like bonds and jewelry, simply because the food industry has the highest failure rate,” he says. According to reports, in the last 10 years more than 25 restaurants have opened and shut down at Lahore’s MM Alam Road alone. “There are around ten copies of Howdy burger in Lahore. Zouk’s menu is being copied by a bunch of other restaurants. If I want to eat something that Zouk is offering I will go to Zouk and not someplace else. If you want to succeed in the food business you got to have a vision and a concept in mind, be hard working and passionate about food.” The industry he feels is going to experience ripple effects of the recent depreciation of the Pakistani Rupee, that saw it fall Rs9 in value compared to the US dollar in a single day. “In the next couple of months this is going to trickle down into 20 per cent increase in prices across the board. Right now, people don’t have disposable income. They have gone into saving mode,” he says. However, he feels that in the long run restaurants will do better compared to home-based chefs due to the cost advantage that they enjoy. “Home based chefs don’t produce in bulk, hence their costs are very high even though they don’t have any overheads. In the long run, mostly those who operate on the mass production model survive,” he concludes.

SOCIAL MEDIA

ACCA’S BID FOR AN EDUCATED PAKISTAN?

As ACCA strives to set the benchmark for quality international education here in Pakistan, the question remains will it deliver a knockout punch

By Arshad Hussain

he Association of Chartered Certified Accountants (ACCA) - a global body of professional accountants, is keen to groom its members as ‘strategic business leaders’, to help them cope with the challenges found in the new-age business environment, says Sajeed Aslam head of ACCA Pakistan. “Today’s finance and accounting professionals must learn to build trust, learn to communicate, advice and influence the top-management. They can understand the complex issues, only if they have a strategic mind and

EDUCATION

intent, as we are preparing them for that”, Sajeed Aslam told Profit during an exclusive interview. Globally, ACCA has 208,000 members and 503,000 students in 172 countries, while in Pakistan, we have over 35,000 members. Its head office is based in the United Kingdom (UK), where the decision-makers of this institution are stationed. They have the authority to grant memberships or cancel any membership. As ACCA Pakistan celebrated the ‘Global Ethics Day’ it has pledged to play a vital role in raising the country’s GDP, by increasing the number of qualified ACCA members, graduating every year. ACCA helps to develop local skills,

to reduce capital outflow, brain-drain and other pressures on the local education system. It offers choices for students and creates development-opportunities through healthier competition among foreign and local institutions, hence the quality and performance of the workforce improves. It is particularly beneficial for developing countries like Pakistan where reducing the braindrain is a critical need, Sajeed claimed. Sajeed Aslam also said that ACCA is producing approximately 1300-1400 qualified ACCA members every year and this number is still much lower than the required number of qualified accounting professionals in the country. In the current scenario, Pakistan requires around 40,000 to 50,000 accountants

to fulfil its demand in the industry.” “The global finance outsourcing market size is around $35 billion, which is undergoing double-digit growth of around 12 per cent annually. If Pakistan succeeds in getting a share of 10 percent out of the total, it will help in the creation of around 100,000 accounting jobs with a services export-volume of $3 billion in the next five years. With this vision, we are helping our members to be business leaders. Through their journey to learn business leadership, they can evolve as a CEO, board member or entrepreneur.” he added. “In the coming days, ACCA will also strive to expand its partnerships in Pakistan, so as to give more opportunities to its members and help them understand the evolving skills and technological solutions relating to professional accounting. To maintain their relevance in Pakistan and their competitive-edge globally, we do this through partnerships. In Pakistan, we have a number of partnerships with leading institutions and numerous universities. We are interested in expanding our network through valuable partnerships, by engaging with other prestigious institutions”, he said. Sajeed Aslam said the global body of professional accounting is currently undertaking extensive research in different areas and the research studies are also supporting our members in Pakistan and across the world. There are new business-models like frugality, mass-customization and ‘pay-whenyou-want’. A lot of these are technology-driven. So, the accountants of the future will have to understand all these intricacies. ACCA is focused on improving the brand awareness of this professional-qualification, to gain more ground in the corporate circles of Pakistan. Mr Aslam said, “the need of ACCA qualified professionals in the public sector is also rising to increase the GDP of Pakistan.” Discussing the importance of an ACCA certification, he said, “an

“RECENTLY THREE MEMBERSHIPS WERE CANCELLED, OF MEMBERS WHO WERE FOUND VIOLATING THE ETHICAL STANDARDS. THIS IS DONE TO TEACH THEM A LESSON, SO THEY UNDERSTAND THE IMPORTANCE OF INTEGRITY AND FAIRNESS IN THIS PROFESSION” Sajeed Aslam, Head of ACCA Pakistan

ACCA is not just an accountant who prepares audit reports, he is thoroughly trained in all relevant fields to perform well in diverse fields relating to his specialization. “ACCA education teaches them the correct and optimum use of their available resources, to excel in the long-run. Talking about the ethical standards and their role in increasing the GDP of the country he stated that an ACCA is inspired to be aware and follow the ethical standards and the essence of integrity in their profession. They cannot miss out any valuable data in their reports and must analyze the company’s assets, resources and performance with various perspectives. If they are found violating any ethical standards or ignoring any key information, for whatever reasons, the membership of such practitioners may even be cancelled. In case the ACCA world-body cancels their membership, their years of training and education will become void, and they are back to the point where they started their

“THE MAIN CHALLENGE OF ACCA IS TO MAKE THE INTERNATIONAL STANDARD OF PROFESSIONAL EDUCATION, AVAILABLE LOCALLY AND THAT TOO AT AN AFFORDABLE PRICE. THIS WILL NURTURE A GLOBALLY COMPETITIVE WORKFORCE FOR PAKISTAN” 40

ACCA program. “Recently three memberships were cancelled of members who were found violating the ethical standards. This is done to teach them a lesson, so they understand the importance of integrity and fairness in this profession. Corrupt practices or evasion of taxation are major crimes for accountants. Ethical standards help the nation build a better economy with transparency to eventually improve the GDP. He further added that the Public Sector companies will be the ones gaining most benefits from the ACCA qualified professionals, so they are should allocate higher salaries for them. Informing Profit about the number of accountants present in the country, he said they numbered approximately 14,000, out of which around 5,200 are ACCA qualified. And those ACCA qualifying from Pakistan are amongst the best globally, they are usually paid 2-3 times higher in many countries and that is the reason, nearly 50 percent of our accountants get highly rewarding jobs internationally.” With the new government in, Aslam is optimistic that the relevant authorities will be able to support the nurturing of a higher number of ACCAs in the country. “Presently there are 21 institutions in Pakistan providing ACCA studies and conducting examinations to produce around 1,400 ACCA members every year. We have the infrastructure, and teachers to produce the required number of professionals, however, we need to mobilize the resources and investments in this direction. Once our economy has inducted a sufficient number of ACCA’s, the country can even export this expertise and qualified

human resources to the international markets. ACCA is committed to helping the government and the country achieve its economic goals. The main challenge of ACCA is to make the international standard of professional education, available locally and that too at an affordable price. This will nurture a globally competitive workforce for Pakistan. ACCA education complies with the global trends in higher education, and the members are inducted internationally, across all English speaking countries like the UK, USA and Australia. Even foreign students from several countries are keen on qualifying as an ACCA. Due to excessive demand for higher education, Pakistan can also export educational services to these countries. It is possible through all or any of the above strategic modes of cooperation.

Study/Research

n Pakistan, ACCA is registered with the higher education commission (HEC). It starts providing education to the students after Matric, Intermediate and B.Com in Pakistan. The students have to clear 13 exams in 4-5 years. In a research report carried out by Rahul Choudah - the Director of Research at WES (World Education Services), New York, revealed a new growing consumer-class in Asia, which will expand a new segment of students who are willing to pay for a global educational experience, while staying in their home country or region. He termed this segment of students as “GLOCALS” global aspirations - local experience. The study concluded that “GLOCALS” are characterized by aspirations that usually outstrip both their ability to afford a full fee-paying overseas education and their academic merit to gain admission to an overseas institution, with financial aid. A perfect example was the growth of Dubai as a study destination for

many South-Asian students, including Pakistan, through international branch campuses showing the growth of such students’ population. Similarly, Malaysia has also several foreign university branch campuses and the country plans to expand further in its foreign university branch campus portfolio. Based on current trends, economic progress and geopolitical development, the outflow of knowledge-seekers from the developing-nations will compensate the inflow of students, especially between Asia, Europe and North America. It is interesting to note that emerging superpower China, now receives more students than it sends abroad. According to a recent report, China’s international enrollment ranked 5th in the world, just behind the USA, Britain, France and Germany. Which means, it is making enormous progress in developing its high-quality education system, to make it a major study destination by 2020? Introducing ACCA in the higher education sector, Aslam has clearly suggested that Asian countries are very keen to become hubs of international education. There is a viewpoint and concern about the excessive westernization of Asia’s unique cultures, languages, traditions and heritage. There are warnings over challenges and possible dangers posed by ACCA education mainly from the receiving countries.

Higher Education Commission

akistan’s higher education landscape has seen a tremendous growth during the past decade, particularly after the establishment of Higher Commission Education ( HEC), which was formed through a Presidential order in 2002. It is a commission headed by the Chairman which reports directly to the Prime Minister, for all matters relating to the

“IN THE COMING DAYS, ACCA WILL ALSO STRIVE TO EXPAND ITS PARTNERSHIPS IN PAKISTAN, SO AS TO GIVE MORE OPPORTUNITIES TO ITS MEMBERS AND HELP THEM UNDERSTAND THE EVOLVING SKILLS AND TECHNOLOGICAL SOLUTIONS RELATING TO PROFESSIONAL ACCOUNTING”

Higher Education Provision in Pakistan. Currently, there are 183 recognized universities and degree awarding institutions in Pakistan both public and private, enrolling more than 1.2 million students. The private sector is growing rapidly and almost 40 per cent of these higher education providers are from the private sector. Foreign education providers also operate in the country mainly through the collaborative mode of delivering programmes with local institutions. All such programmes require the approval of HEC. HEC recognizes the significance of Transnational Education (TNE) and how this can benefit the quality of teaching and research in Pakistan whilst helping the country to meet its skill needs. Sajeed Aslam says that International Education in Pakistan is still limited in its scope when compared to other developing countries. It is pertinent here to say that HEC has been working closely with its counterparts in different countries on harnessing the issues of quality assurance. HEC wants to play a pivotal role in setting up collaborations and providing information for foreign institutions interested in investment, including an overview of university landscape and possible partners. The issues of international qualifications, dual degrees/joint degrees have been under extensive debate since the past many years in Pakistan. This initiative by HEC and relevant authorities will pave the way for the development of foreign programmes in Pakistan. Hopefully, now Pakistani students aspiring to study for a recognized international qualification, will be able to do so, without having to leave their home country, or spending huge foreign exchange and in the process, the risk of brain drain will reduce.

Pakistan Literacy Rate

akistan’s overall literacy rate remains static at 58 percent, with literacy rate of males at 70 percent and females at 48 percent, as due to the Population and Housing Census, the Pakistan Social and Living Standards Measurement was not carried out for 2017-18. Therefore, the Pakistan Economic Survey says that the figures for 2015-2016 should be considered for the current year as well.

EDUCATION