The Good Work of the Aga Khan Family

Aga Khan IV

From time to time, I saw and heard the name Aga Khan during our journey through northern Pakistan. I first came across the name when a dear friend of mine, Ir. Ong Guan Teck, received an Aga Khan Award for Architecture in the 1980s. When our local tour manager told me that the Serena Hotel we stayed in, as well as another where we had lunch, belonged to the Aga Khan's network, I thought I should find out more about the family and share its story with my readers.

Apparently, the Aga Khan family has made extraordinary contributions to Pakistan, particularly in healthcare, education, rural development, cultural preservation and tourism.

What is particularly interesting is that the Aga Khan's activities combine philanthropy with commercial investment. Rather than relying entirely on charitable donations, the organisation establishes businesses intended to be commercially viable while contributing to economic and social development.

The Aga Khan I had heard about was, in fact, Prince Karim Aga Khan IV (1936–2025), the 49th hereditary Imam, or spiritual leader, of the Nizari Ismaili Muslims, a branch of Shia Islam. He assumed the position in 1957, when he was just 20 years old, and led the community for nearly 68 years. He died in Lisbon on 4 February 2025, aged 88.

His son, Prince Rahim Aga Khan V, succeeded him as the 50th Imam and now heads the Aga Khan Development Network (AKDN).

The Aga Khan Foundation began operating in Pakistan in 1969. It reported reaching approximately 1.5 million people in Pakistan through its programmes in 2025.

One of its best-known institutions is Aga Khan University, established in Karachi in 1983. Its teaching hospital is a major private healthcare institution, providing specialist medical care, medical education and clinical research.

The network has also developed healthcare facilities serving remote and underserved communities, including those in the mountainous north of Pakistan.

Its educational investments extend beyond university education to schools, teacher training and early childhood development. What distinguishes the network is its emphasis on building permanent institutions and professional capacity rather than simply distributing charitable assistance.

The Aga Khan Rural Support Programme (AKRSP), established in 1982, has played an important role in the development of Gilgit-Baltistan and Chitral. Its activities include improving agricultural productivity, constructing irrigation systems, developing micro-hydroelectric generation, supporting rural enterprises and expanding opportunities for women.

More than 180 small hydroelectric installations have reportedly been built to supply electricity to remote communities in Chitral. The programme emphasises community ownership and management rather than permanent dependence on external assistance.

There is also a substantial cultural conservation programme. Among its projects are the restoration of Baltit Fort and Altit Fort in Hunza, as well as the conservation of historic settlements along the old Silk Road, which we visited during our journey along the Karakoram Highway. Several of these projects have received UNESCO Asia-Pacific heritage conservation awards.

The Historical Origins of the Aga Khan Family
The Aga Khan family's history is equally fascinating. Like the Parsis of India, the family traces its origins to Persia, although their religious backgrounds and histories are quite different. Its subsequent relationship with British India and its influence in Pakistan, despite not being a Pakistani royal family, are equally interesting.

That story goes back to the nineteenth century, involves the British Empire and the princely courts of India, and helps explain the family's extraordinary international position today.

A landmark development was the Aga Khan Case of 1866, in which the Bombay High Court ruled substantially in favour of Aga Khan I. The judgment strengthened his legal authority over the Khoja Ismaili community and its religious institutions and communal property.

This is a significant historical point. The family's economic strength cannot be explained simply by inherited Persian wealth. Its authority over an established and commercially active religious community, reinforced by colonial legal institutions, was also important.

A distinguished forebear was Sir Sultan Muhammad Shah, Aga Khan III (1877–1957), who grew up within the British Indian political and social environment. He became a prominent Muslim leader, educational reformer and international diplomat.

In 1906, Aga Khan III led a delegation of prominent Indian Muslims to meet the British Viceroy, Lord Minto, at Simla. The delegation argued that Muslims should be recognised as a distinct political community and receive appropriate representation in the institutions of British India.

This contributed to the introduction of separate Muslim electorates under the Indian Councils Act of 1909.

The All-India Muslim League was established in December 1906, following the Simla delegation, and Aga Khan III subsequently became one of its early presidents.

This is historically significant because it was the same Muslim League that, decades later, under Muhammad Ali Jinnah, led the political movement for the creation of Pakistan in 1947.

Aga Khan III himself advocated Hindu-Muslim cooperation at different stages of his career. His political thinking should therefore not be equated simply with the later demand for partition.

Internationally, he achieved remarkable recognition. In 1937, he became president of the Assembly of the League of Nations, the predecessor of the United Nations.

Instead of passing the religious leadership to his son, he designated his 20-year-old grandson, Prince Karim Aga Khan IV, as his successor in 1957. The young Karim was then studying at Harvard University.

Over the following nearly 68 years, Aga Khan IV transformed the family's existing philanthropic, religious and economic institutions into a far more extensive international development network.

Importantly, these activities were not confined to Ismaili Muslims. The network deliberately served wider populations, regardless of their faith, ethnicity or background.

Where Did the Aga Khan Family's Enormous Wealth Originate?
The family's wealth and institutional resources developed from several sources over generations.

First, the early Aga Khans possessed property, social standing and influential connections in Persia.

Second, there were religious contributions. Ismaili followers traditionally made financial contributions to support the Imam and community institutions. These became an important foundation of the Imamat's resources.

Third, there were commercial investments. The family and its institutions developed substantial interests in financial services, industry, tourism and other enterprises.

Fourth, there was international development funding. The Aga Khan Development Network receives financial support from donors, institutional partners and governments for various programmes. Such funding supports development activities and should not be confused with the family's personal wealth.

There is one aspect of this history that deserves particular reflection.

The first Aga Khan benefited from a political alliance with British imperial power. His grandson, Aga Khan III, participated in the constitutional politics of British India, helping establish a political organisation that eventually became central to the movement for an independent Pakistan.

Yet the following generation, under Aga Khan IV, moved substantially away from conventional political activism towards institution-building, economic development and humanitarian work.

No one can say with certainty how much personal wealth the Aga Khan family possesses. Some estimates have placed it as high as US$13 billion, although these figures are difficult to substantiate, not least because of the distinction between personal wealth, religious institutional assets and the holdings of development enterprises.

What is more significant is that the Aga Khan family established an institutional structure capable of deploying more than a billion US dollars annually in non-profit development activities, alongside a substantial network of commercially operated enterprises.

Conclusion
I find the Aga Khan family's story remarkable, not so much because of its wealth or royal status, but because of what successive generations have managed to build.

The family has evolved from a position of religious authority, supported in part by its historical relationship with British imperial power, into the leadership of an extensive international network devoted to education, healthcare, economic development and the preservation of cultural heritage.

What particularly impresses me is its approach to philanthropy. Instead of merely giving money away, it has built institutions, developed enterprises and helped communities acquire the capacity to improve their own lives. In this respect, its philosophy goes well beyond conventional charity.

Of course, the Aga Khan family is not alone in using private wealth for public good. There are many wealthy individuals and foundations around the world doing admirable work. But few have combined religious leadership, commercial enterprise and long-term social development on such an extensive international scale.

During our journey through northern Pakistan, we saw some of the physical evidence of this work, particularly in the restoration of historic monuments and the development of tourism infrastructure.

I began this journey knowing little more about the Aga Khan than the name of an architectural award. I returned with a much greater appreciation of a family whose influence extends far beyond its own religious community.

To me, the most enduring legacy of the Aga Khan family will not be the size of its fortune, but the institutions it leaves behind and the lives they continue to improve.

End