Traditionally university teaching has been perceived as a stress-free profession, particularly by those who are not related to this profession (Fischer, 1994) however since last two decades with the inflow of many private sector universities, Higher Education Institutions (HEIs) are commonly labeled as stressful environments (Barkhuizen & Rothmann, 2008). In developing countries a fast growth has been observed in higher education institutions (particularly during last decade) thus leading to higher competition and deteriorated organizational climate in the universties and the reponsibilites of academicians have increased, which are now supposed to play many other roles besides their traditional roles of teaching and research. In Pakistan, where this study is intended to take place, the number of public and private sector universities increased 100% (2 times), during last 12 years. Despite the fact that enrollment in higher education has been constantly increasing in Pakistan and number of public and private sector HEIs are also growing constantly but HEIs in Pakistan witnessed mismanagement and bad governance (Memon et al, 2010). Occupational stress in universities is a burning issue nowadays, particularly in the developing countries like Pakistan and this study aims to shed light on sources, consequences and moderators of stress in public and private sector universities of Pakistan.