In 1974, the Kudrat-e-Khuda Commission stated the importance of establishing a public university in Khulna Division in its final report. The government finalized the program of establishing a university at Khulna on 4 January 1987 and the Khulna University Act was passed in the Bangladesh National Parliament in July 1990. Distinctive law named খুলনা বিশ্ববিদ্যালয় আইন (The Khulna University Act, 1990) passed in the parliament empowers the university. The university started its formal inauguration of academic activities on 25 November 1991.