The present paper is an empirical research oriented attempt that finds out the effects of institutional environment on the academic performance of the students of University of the Punjab, Lahore. Institutional environment is the set of formal laws, rules and regulations, teaching methodology, institutional norms, values, customs and behavior. Institutional environment is play vital role in student academic performance. A Quantitative research methodology was adopted for this study. Simple random sampling technique was used. Total sample size was 180. Interview schedule was used as the tool for data collection. The data were processed by using SPSS. This study found that 45.0% students reward/encouragement on the part of teachers, (43.9%) conducting sufficient internal exams, (45.0%) university library and (36.7%) problem solving. Role of institutional head positively affected the academic performance of the students as found 45.0% were fulfilling their academic goals and targets that was revealed by 37.8% their successful past results.
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