One of the major problems of the business education in the country is the shortage or lack of faculty members. Since the business administration is in great demand, all those who graduated have better offer in the industry where the starting salary ranges between Rs 15,000 and Rs 30,000 per month as compared to grade-17 (Rs. 6-7,000). in which the public sector universities can hire them, therefore no graduate will be willing to make such a lifetime sacrifice.

Another factor is the period of promotion which is very slow in the public sector, while a young graduate cannot be considered for promotion to next higher grade in the public sector until after six years of continuous service while on the other hand rise to higher grade is very fast in the private sector depending on one's ability and hard work .Private universities, on the other hand mainly depend on the services of retired teachers or visiting faculties from well established business schools in the public sector.

Recognition or approval is another problem that some of these private institutions are still complaining about while the others claim that the only recognition they wanted was from the market.

The establishment of foreign universities in Pakistan, according to some, is all right but the key requirement is to ensure a proper regulatory framework so that standards of business education do not get diluted. Such a step, however, was seen as an interference in the private establishment.

It is said that there is no provision under the law for foreign universities to establish a campus locally without the government's permission while, on the other hand, no private university can function without the approval of the Federal Ministry of Education.

In the beginning of the issue, the UGC published a list of such institutions that were termed fake at the time. Following which some of these universities published two and three-page supplements in the dailies about their institutions. Some of these supplements even carried messages from the chief minister and the governor as well as the federal ministers and other political personalities, such advertisements have now become a regular routine in the dailies to which Dr. Abdul Wahab said "advertising almost every day in the dailies does not make any sense."

Shortage of books, magazines and other physical facilities are cited as other problems facing the establishments imparting business education in the country.

Part of this racketeering include the claim by these fake universities that they have to send certain amount to their principal universities abroad thereby charging foreign exchange from the students .