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The Foundation University Islamabad is an affiliated project of Fauji Foundation which is a charitable trust for the welfare of ex-servicemen of armed forces and their dependents. Its corporate operations began in 1954, when the Post War Services Reconstruction Fund (set up earlier in British India in 1942) was reactivated.Since then, operating as a self-supporting entity in the private sector, it has been generating financial resources to meet its welfare obligations through its own industrial and commercial projects. Today, the Foundation extends social welfare services to over 9 million beneficiaries i.e. 5% of country’s population. Being the largest welfare and industrial group in the country with current assets worth Rs.229 billion and net worth of over Rs.109 billion; around 80% of its annual earning is spent on welfare.
It successfully manages a large healthcare chain of 116 hospitals, medical centres and dispensaries, 100 schools/colleges, and 74 vocational/technical training centres. The Foundation successfully meets all its continuously expanding welfare obligations across the country from resources generated by it. The Foundation’s services in these areas are acknowledged as an indirect assistance to the Government for bringing social uplift and improving the quality of life.​