Education in the twenty-first century demands a balance between continuity and change. The technological leaps and the consequences thereof have overtaken the old educational paradigms and new concepts have emerged in the world of learning. Punjab Group of Colleges (PGC) was among the first to realize this transition and its challenges. The PGC, therefore, submitted a petition to the Government of Punjab, in August 1996, for establishing a university in the province. A No Objection Certificate was issued in October 1999. The charter to establish the University of Central Punjab (UCP) was awarded in April 2002. Thus this University clinched the distinction of becoming the first private sector university in Punjab which acquired the status of degree-awarding institution.

Upon commencement of operations in October 1999, the university offered courses in Management Studies, Information Technology, Commerce and Law through its principal constituents i.e. Punjab College of Business Administration (PCBA), Punjab Institute of Computer Sciences (PICS), Punjab College of Commerce (PCC), Punjab Law College (PLC) and Punjab College of Information Technology (PCIT), all situated in Lahore.

These Colleges were restructured as Faculties of the University and became:

1. Faculty of Management Studies
2. Faculty of Information Technology
3. Faculty of Commerce
4. Faculty of Law
5. Faculty of Engineering
6. Faculty of Arts and Social Sciences