This research aims to study the performance of business schools and determine the level of students’ satisfaction in four public sector universities of Islamabad/Rawalpindi. A quality self-assessment criterion developed by HEC has been used to assess the quality of education. The paper relies on Structural Equation Modeling Technique to analyze students’ satisfaction at university level. Satisfaction is measured on the basis of five variables: work skills, internship experience, communication skills, interpersonal skills and knowledge. Data have been collected from 320 final year graduating students and the alumni of four management and business schools. Results of the study show that except for knowledge and interpersonal skills, all other variables are positively related with satisfaction and are also statistically significant. The reason for this is the failure of students to relate their business studies to local context. The study also proposes some policy recommendations for enhancing the quality of education in business and management schools.