President Mamnoon Hussain and Prime Minister Nawaz Sharif condemned the terror attack and directed security agencies to clear the University of terrorists at the earliest.
Prime Minister Sharif is personally monitoring the situation and he is being kept updated about the latest development, his spokesman said.
Sharif expressed sorrow and grief on the loss of precious lives in the terror attack and said those who attacked innocent students and citizens have no religion.
"The government is committed to eliminate them," he said.
Speaker and Deputy Speaker National Assembly, chief ministers of Punjab, Khyber-Pakhtunkhwa and Sindh and Tehrik-e-Insaf chief Imran Khan also condemned the attack.
The terrorists barged into the university where the event was being attended by a large number of students.
Khyber-Pakhtunkhwa lawmaker Arshad Ali said the attackers entered the university after scaling its walls, Dawn reported.
The families of students have lined up outside the school. Up to 20 ambulances have entered the university to rescue the injured, it said.
Quoting a Rescue 1122 official said, Dawn said the boys section of the hostel has been affected and the victims have mostly been hit by bullets.
It said an Edhi volunteer has seen the bodies of at least 15 persons.
Today's attack comes a little over a year after Taliban militants massacred over 150 people, mostly students, in an assault on an army-run school in Peshawar in December, 2014.