Implementation of Resource Mobilization Strategy Status ... · 2 Bank Al-Habib Limited 50.0 50.0...

IBA | 3rd Annual Status Report on RM Strategy Implementation 1

Implementation of Resource Mobilization Strategy Status Report December 2012

1. The report provides the current status of the Implementation of Resource Mobilization Strategy

approved by the Board of Governors in October 2009.

2. The up to date picture up to December 2012 is provided in Table I below. The revised target of Capital Campaign of Rs. 4.7 billion has been achieved to the extent of 72 percent as Rs. 3.4 billion has been raised so far. The balance of Rs. 1.3 billion is to be mobilized in 2013 and 2014. An amount of Rs. 1.9 billion has so far been disbursed by the donors representing 55 percent of the total committed amount.

TABLE I Capital Campaign Targets and Commitments

(Rs. in million)

S# Fund Targets Commitments made so far

Balance required

1. Physical Infrastructure and Development Fund 2,931.00 2,149.28 781.72

2. I.T. Infrastructure 340.00 105.00 235.00

3. Faculty Development Fund (including Faculty / Students’ Exchange Program)

270.00 203.41 66.59

4. Endowed Chairs 100.00 *80.00 20.00

5. General Endowment Fund 900.00 681.75 218.25

6. Scholarship Fund (including NTHP & STHP) 90.00 133.36 (43.36)

7. Alumni Fund 100.00 **33.12 66.88

GRAND TOTAL 4,731.00 3,385.92 1,345.08 * An amount of Rs.50 Million was transferred from Faculty Development Fund to General Endowment Fund. ** In addition to Rs.33.12 Million, an amount of Rs.75 Million is also committed by Alumni and included in

General Endowment Fund. Sources of Operational Expenses 3. The operational expenses for first six months (2012-13) were financed from the following

sources:

• Fee and other Income 79% • Government Grants 13% • Interest on Reserves 8% In declining interest rate regime, the interest income on reserves – both IBA reserves as well as Endowment Fund – will continue to show a downward trend.

Partnerships with Corporates 4. Training courses were held for the participants from the following companies:


i. Sui Southern Gas Company Limited (SSGC)

ii. Habib Bank Limited (HBL)

iii. National Institute of Business & Finance (NIBAF-SBP)

iv. Sanofi Pakistan

v. Sindh Coastal Development Authority (SCDA-GOS)

vi. Agribusiness Support Fund (ASF)

vii. Institute of Business Administration (IBA Karachi)

viii. National Institute of Business & Finance (NIBAF-SBP)

ix. Searle Pakistan

x. Sindh Coastal Development Authority (SCDA-GOS)

5. Family businesses forms an important ingredient of the corporate sector in Pakistan. The CEE has taken the lead in organizing a series of seminars and workshops for Family Business Owners and exposes them to best practices prevalent in India and other parts of the region.

IBA Alumni Network 6. The response from the Alumni Network in resource mobilization has not been very

encouraging. Funds raised so far for the Alumni Student Centre in form of the purchase of units or bricks leave a large financing gap. Mr. Shahid Shafiq, Alumni Representative on the Board of Governors is taking some initiatives to galvanize the alumni. Several Company Chapters have been formed. A new Chapter has been established in Saudi Arabia raising the total number of geographic chapters to six – Lahore, Islamabad, UAE, Canada, UK and Saudi Arabia. Efforts are being made with the help of the Pakistan Ambassador to UAE and a few senior alumni to provide a legal foundation to UAE Chapter.

Infrastructure Development Fund

7. Infrastructure and Building Development Fund accounts for constitutes two-third of the total Capital Campaign. The actual commitment made so far is Rs.2.276 billion, i.e. Rs.0.995 billion short of the target of Rs 3.271 billion. Of the total committed amount, Rs.1.118 billion has been received by December 2012 from the donors. The pace of disbursement is linked with the speed of the construction of the dedicated buildings.


TABLE II LIST OF DONORS TO INFRASTRUCTURE/ BUILDINGS DEVELOPMENT FUND

Name of Donor Amount

Committed Amount Received Purpose

Aman Foundation (AF) 1,000.00 283.97

Aman Foundation disbursed Rs.105 million for Technology up gradation and construct two buildings on turnkey basis - Multistoried building at the City Campus and the Centre for Entrepreneurship Development (CED) at the Main Campus at an estimated Cost of Rs.895 million. The fully furnished CED building is in use now whereas the Aman tower will be handed over to IBA upon completion.

Higher Education Commission (HEC)

262.95 173.78 Various works including New Boys Hostel and visiting Faculty Hostel.

Aziz Tabba Foundation 150.00 150.00 Academic building at Main Campus is about to be commissioned.

Mahvash and Jahangir Siddiqui Foundation

140.00 - Mahvash and Jahangir Siddiqui Foundation is constructing the new Auditorium on a turnkey basis and will hand it over to IBA upon completion.

Adamjee Foundation 100.00 87.60 Academic block at the Main Campus is functional.

Fauji Fertilizer Bin Qasim Limited

100.00 40.00 Admin Building at the Main Campus is under construction.

Arif Habib Corporation Limited

100.00 20.00 General Building Fund.

Abdullah Foundation (Sapphire)

75.00 27.00 Library Building at Main Campus is under construction.

United Bank Limited 75.00 18.61 Sport Complex is under construction.

Education & Literacy Department, Govt. of Sindh

57.45 10.00 Girls' Hostel is under construction.

National Bank of Pakistan 50.00 50.00 Technology Centre building is functional but the Data Centre is under implementation.

The HUB Power Company Ltd. (HUBCO)

40.00 - Auditorium Building Fund

Allied Bank Limited 40.00 25.00 General Building Fund

TPL Holdings (Pvt.) Ltd 25.00 5.00 Infrastructure Development

Alumni Student Centre 21.57 5.77 Alumni are expected to finance this Centre which is under construction.

Pepsi Company 18.88 - Student Centre dining facility at Main Campus

Standard Shipping Pakistan (Pvt.) Ltd.

15.00 10.00 New Prayer Hall at Main Campus is under construction.

Philip Morris International (PMI)

5.01 5.01 Towards Library Building at Main Campus

Total 2,275.85 1,118.01


Faculty Development Fund:

8. This fund helps our faculty get training abroad and also helps IBA recruit good potential faculty. The total commitment to date is Rs.192.0million. The HEC grant for Faculty Development i.e. overseas scholarships for Phd has been extended until 2016 but the rate of utilization is quite slow.

Following faculty members attended international trainings from January to December 2012.

S. No. Name of Faculty Training Duration and Year

a.

Mr. Kamran Mumtaz

Mr. Nauman Amin

Babson College, USA

Babson College, USA

Training for Entrepreneurship

One semester

Fall 2010 and Spring 2012

b.

Dr. Amber Gul Rashid

Mr. Muhammad Asif

Ms. Nyla Aleem Ansari

International Management Teachers Academy (IMTA), Slovenia

Faculty Development: curricula, course design, teaching materials, teaching skills and methods

Two weeks

Summer 2012

c.

Mr. Asad Ilyas

Syeda Beena Butool

Ms. Saima Hussain

International Faculty Program, IESE Business School

Faculty Development: Quality Communication in the Classroom, Institutional Management, and Personal Career Planning

Three weeks

Summer 2012

d. Ms. Javeria Rebaz

Certificate in English Language Teaching to Adults (CELTA), UAE (By British Council UAE)

Faculty Development: Methodology Workshops, Teaching Practice and Assessments

24 Jun to 19 Jul 2012

Summer 2012

9. Table III lists the donors who have contributed to Faculty Development Fund.


TABLE III (Rs. in million)

LIST OF DONORS TO FACULTY DEVELOPMENT FUND Name of Donor Amount Committed Amount received

Higher Education Commission (HEC) 137.00 12.25 Indus Motors 15.00 15.00 English Biscuit Manufacturers 10.00 10.00 National Foods Limited 12.50 12.50 Barclays Bank PLC, Pakistan 5.00 3.00 Chevron Pakistan Limited 5.00 1.00 Naseem Allawala, ESQ 5.00 2.00 Central Depository Company 2.00 2.00 Cadbury Pakistan Limited 0.50 0.50

TOTAL 192.00 58.25 Targeted Amount 270.0

Endowment Funds and Endowed Chairs:

10. The target of this fund is now Rs.1 billion but the actual commitments received so far amount to

Rs. 763 million. Two thirds of this amount has actually been credited into the IBA Endowment Fund. The details of commitments till December 2012 and receipts are shown in Table IV below:

TABLE IV LIST OF DONORS TO ENDOWMENT FUND / ENDOWED CHAIRS

(Rs. in million) S# Name of Donor Amount

Committed Amount received

Purpose

1 National Bank of Pakistan 50.0 50.0 General Endowment

2 Bank Al-Habib Limited 50.0 50.0 Hamid D. Habib Chair-MBA Financial Services

3 Askari Bank Ltd 50.0 50.0 General Endowment

4 Mr. Towfiq Chinoy 80.0 35.6 Administrative Block at City Campus

5 Gatron Industries Limited 75.0 26.0 Alumni Fund – General Endowment Auditorium Building at Main Campus

6 Standard Chartered Bank 80.0 40.0 General Endowment

7 Bank Alfalah Limited 66.0 44.0 General Endowment

8 Allied Bank Limited 30.0 30.0 General Endowment

9 International Industries Limited 30.0 30.0 Entrepreneurial Management

10 Getz Pharma (Pvt) Limited 25.0 7.5 General Endowment

11 International Textile Limited 20.0 20.0 General Endowment

12 Govt. of Sindh 5.0 5.0 General Endowment

13 Pakistan International Container Terminal Ltd.

5.0 2.0 General Endowment


14 Soneri Bank 3.0 3.0 General Endowment

15 Deutsche Bank 1.25 1.25 General Endowment

16 UCH Power (Pvt.) Ltd. 0.5 0.5 General Endowment

17 Mr. Zohaib Ali Khan, IBA Alumni 0.01 0.01 Alumni Fund - General Endowment

18 Anonymous 0.01 0.01 Alumni Fund - General Endowment

19 Mr. Abrar Hasan, CEO, National Foods Ltd. 0.50 0.50 General Endowment

20 Mr. Parvez Ghias, CEO, Indus Motor Co. Ltd.


21 Mr. Ghouse Akbar, Director, Akbar Group of Companies


22 Mr. Saifuddin N. Zoomkawala, Chairman, EFU General Insurance. Ltd


23 Habib Bank Limited 50.00 50.00 General Endowment

24 Faysal Bank 75.00 49.00 Academic Building at City Campus

25 Pakarab Fertilizers Limited 25.00 - General Endowment

26 Fatima Fertilizer Company Limited 25.00 - General Endowment

27 Millat Group of Companies 10.00 - General Endowment

28 National Investment Trust (NIT) 2.50 2.50 General Endowment

29 Mr. Mohsin Ali Nathani, CEO, Standard Chartered Bank

0.50 0.50 Alumni Fund - General Endowment

30 Mr. Tariq Kirmani 0.50 0.20 Alumni Fund - General Endowment

31 Mr. Zahid Bashir, CEO, Mohd. Amin Mohd. Bashir Ltd.


32 Mr. Tahir Khaliq, Director, United Distributors (Pvt.) Ltd.


33 Dr. Miftah Ismail, Director, Ismail Industries Ltd.


34 Mr. Anwar H. Rammat, Chairman, Asiatic Public relations Network (pvt) Ltd.


35 Mr. Muneer Kamal, President & CEO KASB Bank Ltd.


Total 763.77 499.72


Scholarship Fund:

11. The main sources of Scholarship Fund are:

a. Scholarship by Donor Agencies: HEC-USAID and Sindh Government Endowment are the two major donors to this fund. In addition there are also private donors who provide scholarships and Financial Aid. List of major donors is available on the IBA website containing detail of the donations.

b. IBA’s own funding for Scholarships: IBA has introduced Merit based scholarship for the top10% meritorious students in the IBA admission test. They are granted 50% concession on tuition fee. It is obligatory for such candidates to maintain a CGPA of 3.5 on completion of every two semesters each year. Inability to maintain the said CGPA renders the concerned merit scholarship holder ineligible for continuing of the merit scholarship in the remaining semesters. Scholarship slots released as a result of this discontinuation (as mentioned above) are made available to the toppers (maintaining highest CGPA) in the Dean’s Honor List for that particular academic year. In addition IBA finances the needy students who are unable to secure Financial Assistance from the HEC-USAID, Sindh Government or the private donors.

12. Nine new major donors who provided additional scholarship during six months ended

December 2012: i. Syed Sarfaraz Ali Ghori

ii. Mr. Shuaib Ahmed iii. Mr. Amir Saleem iv. Chevron Pakistan Limited v. Hassan Scholarship

vi. Late Mr. Ghulam Faruque-Cherat Cement Co. Limited vii. Amin Issa Tai

viii. Jubilee General Insurance ix. Pakistan Petroleum Limited (PPL)

IBA Advisory Council

13. The IBA Advisory Council meets on a fortnightly basis, where the members discuss and use their networks for Fund Raising. The Council has actively met the top 100 businessmen and has made a presentation to them about IBA and the need to donate generously towards IBA for its various funds. The committee is also working on arranging a ‘Donor’s Dinner’ for all the donors who have generously donated to the various IBA funds.

The Friends of IBA Trust (FIBAT)

14. A Trust by the name The Friends of IBA Trust (FIBAT) has been created. A close link is now

established between the IBA Advisory Council and the FIBAT. The creation of such a Trust was necessary to ensure full disclosure and transparency of Funds received from the donors investments made, expenses incurred etc. and to control the affairs of the trust by donors themselves. Trust deed and its constitution for creating a trust were prepared and registered with Registrar Inland revenue. The names of the Trustees (see Annexure-3) have been finalized and approved by the IBA Board of Governors.

15. All funds accruing to the Endowment Fund are now administered by the Friends of IBA Trust

(FIBAT) that comprise donors who have contributed or donated or pledged a minimum amount of Rs.30 million to IBA. At present individual statement of accounts for each donor are


prepared at the end of the financial year and sent to the respective donors. All the donor accounts are audited by reputed firms of external auditors and are available for inspection. These accounts are reviewed and scrutinized by the Trustees in FIBAT meeting.


Annexure 1

(Up-dated as on December 31, 2012)

STATUS OF VARIOUS PROJECTS

(Rs. in million) PHYSICAL INFRASTRUCTURE DEVELOPMENT FUND

New Buildings and Structures that can be named after Donors

Total Estimated Cost Rs.3.27 billion

Duration Estimated

Cost Amount

Committed Donor/ Status

I PROJECTS COMPLETED DURING THE YEAR

1 Renovation of Academic Block (Main Campus)

2010 104 100 Adamjee Foundation

Completed Oct-10

2 Renovation of Academic Block (City Campus)

2010-11 124 75 Faysal Bank Completed Sep-10

3 Renovation of Boys Hostel

2008-09 96 - Completed (Main Campus)

4 Renovation of Auditorium

2010 68 40

Hubco Gani and Tayyub Family

(Main Campus) 75 Completed Nov-10

5 Administration Block II

2009 28 50 NBP Completed (Main Campus)

6 Girls Hostel Extension 2010-11 13 - Completed

7 New Boys Hostel (Main Campus) 2010-12 152 82 HEC Completed

8 Admin Building (City Campus) 2010-12 101 80 Towfiq Chinoy One block out of three blocks completed

9 Centre for Entrepreneurship Development (Main Campus)

2010-12 240 230 Aman Foundation Completed

TOTAL 926 732

II PROJECTS UNDER- CONSTRUCTION

10 Student Centre (Main Campus) 2010-13 165 22 Alumni

19 Pepsi


11 New Academic Block (Main Campus) 2010-13 226 150 Tabba Foundation

12 Visiting Faculty Residences(Main Campus)

2010-13 136 22 HEC

13 Multi-storeyed Building (City Campus) 2010-14 660 665 Aman Foundation

14 Girls Hostel (Main Campus) 2010-12 108 57 Govt of Sindh

15 Auditorium (City Campus) 2011-13 100 140 Mahvash and Jahangir Siddiqui Foundation

16 Admin Building (Main Campus) 2010-12 170 100 Fauji Fertilizer Bin Qasim

17 Library (Main Campus) 2011-13 112 80 Abdullah Foundation & PMI (Rs.5.01m)

18 Sports Arena 2011-13 48 75 United Bank Limited

19 Faculty of Computer Science Building 2010-13 69 -

20 Data Centre Main Campus 2010-12 20 -

21 Data Centre City Campus 2010-12 20 -

22 Campus External Development Works (Both Campus)

2010-14 155 25 TPL Holdings (Pvt.) Ltd.

23 Prayer Hall 2012-13 15 15 Standard Shipping Pakistan (Pvt.) Ltd.

TOTAL 2,004 1,370

159 HEC

Funds for Miscellaneous projects

100 Arif Habib

100 Bestway

40 ABL

TOTAL BUILDINGS AND CIVIL WORKS 2,930 2,501

Information and Communication Technology 340 105 Aman Foundation

Total Physical Infrastructure Fund 3,270 2,606


2. FACULTY DEVELOPMENT FUND

I Foreign scholarships to train faculty members at leading Universities abroad

Three scholarships for four years

Each scholarship for a four year Ph.d program in U.K., Canada, Australia, State Universities of U.S. will on average cost US $ 125,000 – 150,000

Rs.150 million

• Mr. Amir Jahan Khan, pursuing Ph.D. from University of Warwick, expenses incurred till Dec 2012 - Rs.12.9 million

• Ms. Ambarin Asad Khan, pursuing Ph.D. from University of Manchester, expenses incurred till Dec 2012 - Rs.12.7 million

Total expense sums up to Rs.25.6 million partly funded by HEC Rs.17.24 million.

Ii

Hiring Foreign Faculty to teach at IBA

Each foreign faculty member will cost on average $150,000 a year. Donors can also arrange visits to IBA for only one semester and in other cases several weeks only. This could cut down the cost substantially. The growing faculty resource base at the joint venture Universities in GCC countries can also be tapped for bringing faculty members teaching at these Universities to IBA on a regular basis.

Rs. 120 million

Iii Endowed Chairs for Senior Professors

Ten Chairs to be named after the benefactors. Each Chair to be set up under a fully funded endowment of Rs.50-60 million that generates annual income of Rs.5-6 million to pay the salaries of eminent scholars attracted to join the IBA faculty.

Rs.100million

• Towfiq Chinoy contributed Rs. 30 million towards Amir Chinoy Chair in Entrepreneurial Management.

• Bank Al- Habib contributed Rs. 50 million towards Hamid D-Habib Chair – MBA Financial Services.

3. General Endowment Fund

In the General Endowment Fund surplus funds would be placed and donations and contributions solicited. The income generated from this Fund will be utilized to supplement the salaries of the faculty members to make the compensation packages competitive as well as provide research grants to them. Other uses of this income would include academic program enhancement, curriculum and case study development, external accreditation, professional development, participation in international seminars, conferences, workshops and organization of such conferences at IBA.

Rs.900 million

An amount of Rs. 678.27 million has been committed by our esteemed donors out of which Rs.416.37 million has been received and the remaining amount shall be received as per the schedule provided by the donors.


4. SCHOLARSHIP FUND

To provide financial aid to the students on the basis of their needs determined according to pre-specified criteria.

Rs.60 million

Increase in the tuition fee and other charges has increased the scholarship fund requirements as per following detail:

Rs.1,200,000/ student for BBA 4 year program

Rs.700,000/ student for BS 4 year program

Rs.600,000/ student for MBA 2 year program

I Scholarships, Student Loans and Qarz-e-Hasna for meritorious-cum-needy students

Full stipend covering tuition and other fees in 2011-12 will involve the following amount per student:

- Scholarship for 4 year B.B.A. program.

- Scholarship for 4 year B.S program.

- Scholarship for 2 year M.B.A. program.

ii National Talent Hunt Program:

Selecting students from the backward districts of Pakistan, coaching them at IBA for entry examinations and fully funding the selected candidates for four year B.B.A. / B.S program.

The cost of four year program for 20 students selected for orientation and 8 students provided full funding for four years is Rs.10 million

Rs.30 million

Net expenses for both the National and Sindh talent hunt program accumulates to a total of around Rs. 5 million for one year funded by the Ihsan Trust and the Govt. of Sindh.

New agreements have been signed with Govt. of Sindh and Ihsan Trust for two and four years respectively.

5.

ALUMNI FUND

IBA Alumni in Pakistan and outside Pakistan will be requested to provide both lump sum donations as well as monthly contributions to this Fund. On line donation facility has been established and it will enable them to authorize the amount, frequency and the use of their donation automatically.

Rs.100 million

IBA Alumni Chapter has been created in various countries and Rs. 33.12 million has been committed by the IBA Alumni till December 2012.


Annexure 2

IBA Advisory Council Members List

S # NAME COMPANY/ADDRESS

1. Sardar M. Yasin Malik Chairman Hilton Pharma (Pvt) Ltd

2. Mr. Tahir Khaliq Director United Distributors Pvt Ltd.

3. Mr. Mohsin Ali Nathani Chief Executive Standard Chartered Bank

4. Mr. Ali Ahmed Khan Chief Executive Reckitt Benckiser Pakistan

5. Mr. Tariq Kirmani Chairman

6. Mr. Ghouse Akbar Director Akbar Group of Companies

7. Mr. Iftikhar Allawala Director Speciality Printers (Pvt) Ltd.

8. Mr. Muneer Kamal President & CEO KASB Bank Limited

9. Mr. Shahid Shafiq M/s. Shahid Shafiq Private Ltd

10. Mr. Babar Bashir Nawaz Chief Executive Attock Cement Pakistan Limited

11. Mr. Nadeem Jafarey General Manager - Pakistan, Middle East & Egypt Chevron Pakistan Limited

12. Mr. Zafar A. Siddiqui Secretary

13. Mr. Zahid Bashir Chief Executive Officer Mohd. Amin Mohd. Bashir Ltd

14. Mr. Pervez Iqbal CEO &Managing Director BBCL (Pvt) Ltd.

15. Mr. Abrar Hasan Chief Executive Officer National Foods Limited

16. Dr. Miftah Ismail CEO & Director Ismail Industries Limited

17. Mr. Saifuddin Zoomkawala Managing Director & CEO EFU General Insurance Ltd

18. Mr. Parvez Ghias Chief Executive Officer Indus Motor Company Limited

19. Mr. Anwar Rammal Chairman Asiatic Public Relations Network (Pvt) Ltd

20. Ms. Nassimbano Ahmad Special Olympics Pakistan Program Development Director

21. Ms. Ayesha Tammy Haq Business Plus TV Director

22. Ms. Ronak Lakhani Century Paper & Board Mills Ltd

23. Mr. Nadeem Abdullah Chief Executive Sapphire Fibres Ltd

24. Mr. Khalid Bashir Chairman Suraj Cotton Mills Ltd

25. Mr. M. Yousuf Adil


Annexure 3

Implementation of Resource Mobilization Strategy Status ... · 2 Bank Al-Habib Limited 50.0 50.0...

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