PACRA Maintains Entity Ratings of Ziauddin University

Ziauddin University is a well-established private sector institution in Pakistan, founded under the Ziauddin Trust with a strong emphasis on quality education, particularly in the field of healthcare. Headquartered in Karachi, the University has developed a reputable academic ecosystem supported by modern infrastructure, experienced faculty, and a commitment to research and innovation. It offers a diverse range of undergraduate and postgraduate programs across disciplines such as medicine, pharmacy, engineering, business administration, and social sciences, catering to a broad student base. Over the years, the University has positioned itself as a key contributor to Pakistan’s higher education and healthcare sectors, supported by its integrated network of teaching hospitals and clinical training facilities. This practical exposure enhances the quality of education and ensures graduates are well-equipped for professional challenges. With a focus on academic excellence, community service, and continuous improvement, Ziauddin University continues to strengthen its market presence and expand its academic footprint, aligning its strategic direction with evolving industry and educational demands. Ziauddin Medical College continues to serve as a key pillar of the University’s success, distinguished by its academic rigor and high-quality clinical training. Alongside strengthening its academic standing, the College generates over 43% of its total revenue, underscoring its strategic importance. The University has also achieved significant progress in nursing education, notably offering a PhD in Nursing, one of the few programs of its kind in Pakistan. It also actively contributes to medical research through its Clinical Trials Unit, which conducts regulated clinical studies in areas such as oncology and infectious diseases, supporting evidence-based healthcare advancements. Further strengthening its overall profile, Ziauddin University is actively pursuing expansion beyond higher education by extending its operations into colleges, schools, and daycare facilities. This initiative includes a franchising model aimed at catering to low-income communities, thereby enhancing accessibility to quality education. In addition to supporting its social outreach objectives, this diversification strategy is expected to broaden the University’s operational footprint and create new avenues for sustainable revenue generation. Ziauddin University has demonstrated a solid financial performance, with revenue registering a notable growth of 18.2%. Profitability has also improved, as reflected in net profit margins rising to 5% in FY25 from 2.2% in FY24. The University’s financial risk profile remains strong, supported by a low-leveraged capital structure, with total borrowings declining to 12.8% in FY25 from 24.9% in FY24, alongside a significant improvement in the interest coverage ratio to 6.6x (FY24: 2.6x). Operational efficiency has strengthened, evidenced by a reduction in net working capital days to 13 days in FY25 from 42 days in FY24. The management maintains a positive outlook on sustaining financial surpluses to support future growth initiatives. Additionally, governance is reinforced by the presence of experienced educationists on the Board of Governors and Board of Trustees, while national accreditations and international linkages further enhance the University’s overall profile.
The ratings are dependent upon the management’s ability to sustain margins while remaining self-sufficient and in surplus for expansionary measures. Prudent management of the working capital, and maintaining sufficient cash flows, and coverages remain imperative for the ratings. Any significant deterioration in coverages and/or margins will adversely impact the ratings.

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.