Revised rental system : PU on track to earn massive revenue

LAHORE: At the Punjab University, a quiet revolution is underway not in classrooms but in the commercial spaces tucked across its Old and New campuses.

For years, the university’s 150 commercial outlets including shops and other commercial spaces, across its two campuses operated under routine annual contracts, with modest rent hikes and little oversight. But a recent auction of a hotel space at the New Campus is changing the game.

In the auction of the hotel, popularly known as PC Dhaba, the existing tenant placed the winning bid, raising the monthly rent from Rs90,000 to a whopping Rs2.6 million. This dramatic increase not only reflects the true market value of the property but also highlights how commercially lucrative the location has become. The fact that the current occupant was willing to offer such a high amount underscores the strong earning potential of the site, something that had long been overlooked under the previous rental system, says PU spokesperson DrKhuramShahzad.

This single example reveals the massive earning potential hidden in PU’s rental portfolio.

In another example of PU's rental reform, a canteen at the New Campus, previously rented for just Rs17,000 per month, has now received a fresh bid of over Rs300,000.

The massive jump reflects the true commercial value of the space and reinforces the university’s decision to move away from outdated contracts toward open auctions.

Acting on concerns raised by the Vice Chancellor Prof Dr M Ali about inconsistent rates and outdated practices, the university began auctioning its shops afresh this year.

In order to streamline the management of commercial outlets on campus and boost the university’s revenue, the PU Vice Chancellor had reconstituted the Shops/Kiosk Committee in March 2025. Dr. RehanSherwani, Professor at the College of Statistical Sciences, was appointed as the Chairman of the committee whileother members included Prof Dr Hafiz Zafar, Principal of the College of Commerce; Col (retd) Umar (RO-I); DrNaseem (RO-II); and the Treasurer of the University.

As per the details, so far, just 36 shops have been auctioned and monthly rental income has already surged from Rs10 million to Rs86 million.

With only a fraction of the total 150 outlets re-auctioned, PU’s original target of Rs100 million in monthly rental income is now well within reach, and likely to be exceeded.

“Had the Vice-Chancellor not taken timely notice of the outdated rental practices, the university would have continued missing out on millions in potential revenue,” commented a senior professor and added “The VC's intervention proved crucial in unlocking the true financial value of PU’s commercial spaces.”

Sources in the university revealed that PU administration was also contemplating to revisit its policy regarding the lease of the university's agricultural land at New Campus and once finalized, the administration would follow the pattern of auction of its shops and kiosks.

PU Vice Chancellor Prof Dr M Ali told The News that the shops were advertised as per Government rules and given to highest bidders.

He added the university simply implemented a procedure that should have been in place years ago. He emphasised that whoever was allotted a shop must go through a transparent process in line with PPRA regulations and the guidelines set by the Public Accounts Committee.

Answering a question about PU’s agricultural land, the VC said that the university would follow the same policy to lease out its agricultural land in the future.