PACRA Maintains Entity Ratings of Ziauddin University

Ziauddin University, established in 1995, has progressively expanded its academic portfolio to include a broad spectrum of disciplines, ranging from Health Sciences to Veterinary & Animal Sciences. On the governance front, the active engagement of the Board of Governors ensures a stable governance framework. The University’s strategic diversification has been characterized by a significant enhancement in program offerings, student enrollment, and faculty recruitment. This expansion has been geographically mirrored by the establishment of multiple campuses within Karachi and a recent extension into Sukkur. During 2023 the university inaugurated a Clinical Trial Unit at the Clifton Campus, aimed at bolstering multi-project research capabilities, and a specialized facility on Link Road, Karachi, for the production of radioactive isotopes critical for cancer research and therapeutic applications. The introduction of new programs and the expansion of campuses, particularly the full operationalization of the Sukkur campus, are expected to contribute positively to the revenue streams. Despite the intense competition within the education sector, Ziauddin University has managed to uphold a satisfactory market stance. From a financial perspective, the University exhibits a sound risk profile with consistent revenue growth. The University has demonstrated prudent financial management, maintained satisfactory margins and leveraged debt financing for its expansion plans. The management remains confident regarding the University’s surplus generation capabilities, which are expected to support debt repayment and fund future expansion endeavours. The University’s creditworthiness is reinforced by a stable financial profile, marked by a moderately leveraged capital structure and satisfactory coverage ratios. The working capital cycle is efficiently managed. The University’s standing is further enhanced by its comprehensive national accreditations and international affiliations, which contribute to its esteemed academic ranking.
The ratings are contingent on the management’s proficiency in preserving margins, achieving self-sufficiency, and generating a surplus for expansion initiatives. The significance of stringent financial discipline is paramount. Astute handling of working capital, ensuring ample cash flows, and maintaining coverage ratios are vital for the ratings. Any decrease in coverage ratios and margins resulting in escalated financial risk or considerable losses will negatively influence the ratings. The management’s effectiveness in handling reputational risk also plays a crucial role in the ratings. The swift and effective implementation of development plans is imperative for the ratings’ stability.

About the Entity
Ziauddin University (‘the University’) was established through ACT VI of 1995 (Ziauddin Medical University ACT) by the Provincial Assembly of the Government of Sindh. The University is a non-profit private institution which provides higher education services. It is accredited and recognized by the Higher Education Commission of Pakistan (HEC). The University has its branch campuses in Karachi and Sukkur. The Board of Governors (BoG) includes representatives from Dr. Ziauddin Hospitals Trust, Government and Regulatory Bodies. Mr. Asim Hussain serves as Chairman of the BoG and Chancellor of the University.