The culture of private universities in Bangladesh started in the early 1990s. During that period, the government felt that the existing public universities were insufficient to meet the demand for tertiary education in the country. These issues led the government to permit the establishment of private universities, and on 9 August 1992, the Private University Act (Act 34) 1992 was passed. East West University was established in 1996 as a non-profit organization. The university is the first major project of the Progoti Foundation for Education and Development (PFED), a non-profit, non-political, charitable organization maintained by a group of academics, business leaders, professionals and education enthusiasts led by Mohammed Farashuddin, economist and former governor of Bangladesh Bank.