As per Ordinance No. CXXIV of 2002 dated November 15, 2002 promulgated by the President of Islamic Republic of Pakistan to set up a National Textile University, the Board of Governors is the supreme authority for the University out of the authorities listed in the Ordinance. As per the Ordinance, the general supervision and control of the affairs of the University and the powers to lay down the policies of the University shall vest in a Board of Governors.

Without prejudice to the generality of the provisions of subsection, the Board shall exercise and perform the following powers and functions, namely:-

1. To hold, control and administer the property, funds and resources of the University and to borrow or raise money for the purpose of the University upon such security as may be required;
2. To formulate or approve the principles, policies and plans governing the activities and operations of the University, so as to ensure that the academic staff enjoy academic freedom in their research and educational work;
3. To prepare and revise, from time to time the rules and regulations for the efficient and effective operation of University;
4. To review and approve the creation of any standing component of the University, such as faculties, and councils and other administrative bodies necessary to assist or improve the working of the University;
5. To approve the plans of work and annual budget of the University submitted by the Director Finance, the budget being based on the budget prepared and submitted by the constituent or affiliated college or institutes;
6. To require and consider reports submitted by the officers of the University relating to the activities of the University and the execution of the plans of work and to direct the concerned authority to submit reports relating to any matter specified by the Broad;
7. To create such academic or administrative posts as it may consider necessary for the purpose of the University and to approve appointments to such of these posts as it may specify, including the posts of deans, directors, professors, associate professors, assistant professors, lecturers and demonstrators;
8. To select and appoint all administrative and academic staff of the University;
9. To fix the scales of pay allowances and honoraria for the staff, both academic and administrative, commensurate with their qualification and experience in order to attract the best talent from within and outside Pakistan for the University;
10. To undertake responsibility for financial integrity of the University, including responsibility for ensuring effectiveness of its future operations and their continuity and the preservation of the autonomy of the University;
11. To approve all affiliations and other similar arrangements through which colleges, institutions or individuals may become associated with the University within Pakistan and abroad;
12. To appoint from amongst its members such committees or sub-committees as may in the opinion of the Broad necessary for its more efficient and effective operation; and
13. To take all such initiatives as it may consider necessary or desirable for the efficient and effective management and functioning of the University.

The Board shall lay down its own rules of procedure and may amend or modify them from time to time.

The Board may delegate all or any of its powers and functions to an Executive Committee, sub-committee or Rector.