ISLAMABAD: The federal government is planning to introduce a special tax on tobacco products to cover the operational costs of the proposed Daanish University in Islamabad.
This decision was made during a review meeting chaired by Prime Minister Shehbaz Sharif, according to media reports. The meeting was attended by Planning Minister Ahsan Iqbal, Education Minister Dr Khalid Maqbool Siddiqui, Law Minister Azam Nazeer Tarar, Economic Affairs Minister Ahad Cheema, and other officials.
Following the PM’s recent instructions, the Education Ministry has written to the Federal Board of Revenue (FBR) to move forward with the tobacco levy aimed at supporting the university’s expenses once it is operational.
Officials informed the meeting that a roadshow was recently held in China and Turkiye to attract top consultancy firms and explore opportunities for international academic partnerships, including student exchange programs and modern technology-based courses.
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A total of 12 international consultancy firms (mainly from China and Turkiye) and three local firms participated in the bidding. The bids were opened on June 16, and the evaluation process is now underway. The lowest bidder will be responsible for finalising the university’s design and overseeing implementation.
The university’s charter has already been finalised by the Education Ministry and shared with the Planning Commission. The trust deed is also prepared and currently under legal review.
A press release from the Prime Minister’s Office stated that PM Shehbaz Sharif reaffirmed the government’s commitment to providing equal education opportunities for underprivileged students. He stressed that the Daanish University and all Daanish schools must meet international standards.
The PM ordered the inclusion of a world-class digital library, smart boards, e-libraries, and other modern facilities in both the university and existing Daanish schools.
The university is being funded by part of the £190 million recovered from a Pakistani property tycoon and returned by the UK government. A portion of this money will go towards the university, while the rest will support other education-related projects. The tobacco tax will primarily help cover the university’s running costs.
In Budget 2025-26, the federal government officially announced the establishment of Daanish University Islamabad. Finance Minister Muhammad Aurangzeb, in his budget speech, said the focus is on expanding Daanish Schools to support talented students from remote and underdeveloped regions.
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A total of 11 new Daanish Schools are planned — three in Azad Jammu & Kashmir, three in Gilgit-Baltistan, four in Balochistan, and one in Islamabad. Rs9.8 billion has been allocated for this under the Public Sector Development Programme (PSDP) 2025-26.
Earlier in March, PM Shehbaz visited the university site in Islamabad’s Sector H-16 and directed authorities to speed up the pre-construction work. He expressed hope that the Daanish University would become a model institution in Pakistan, known internationally for its focus on applied sciences, research, and quality education.
Work on master planning, construction of academic and residential blocks, and staff hiring is expected to begin in the coming year.
Officials say the project will not only promote higher education but also help create jobs, reduce inequality, and boost regional development.
