This paper intends to examine existing educational practices, beliefs in Pakistani universities teaching engineering degree programs. It discusses the present situation of engineering education in developing countries like Pakistan, the causes that hinder the smooth process of knowledge creation and dissemination, irrationalities rooted in society and role of university leadership in keeping status-quo. Incumbent education internationalization strategies and academic entrepreneurial policies for the sustainable development are examined in the light of appalling ground realities. Following a qualitative approach, eight heads of departments were interviewed to explore the current situation, problems and the role of leadership. The findings revealed that fundamental causes include pricey education, lack of uniformity in curricula all over the country, lack of focus on practical education, misaligned priorities, rife poverty, rampant fees, business slant and simulation research practices, racial bigotry and political interferences in recruitments. The study indicates that academic leadership plays a decisive role in promoting higher education. Vice-Chancellor, with a significant position, needs to be an extraordinary individual with exceptional capabilities. The study implies that selection of Vice-Chancellor deserves great attention. Besides, it encourages regulating fee, recruiting talented local teachers, enforcing uniform curricula, imparting technical education in collaboration with local industries and raising local education standards. It offers future researchers to test present analysis empirically.