<p>The integration of Generative Models (GMs) in higher education presents transformative potential, particularly within developing educational systems such as Pakistan’s. This study offers a unique contribution by exploring the role of GMs including ChatGPT, Gemini, and Copilot in Pakistani higher education through a mixed-method approach, combining in-depth interviews with 35 experts and a nationwide survey of 1036 students and educators. This research is among the first to provide comprehensive empirical insights on GMs from the perspective of a Lower-middle-income country with a rapidly evolving digital infrastructure. Key findings reveal that 90% of teachers and 76% of students have used generative AI tools for educational purposes, with most citing benefits in content creation, research assistance, and accessibility. However, the study also uncovers significant challenges: only 8–11% of respondents believe their institutions are ready for GM integration, and less than 35% have received any formal AI training. Ethical concerns, data privacy issues, and risks to academic integrity (as reported by over 75% of respondents) highlight the need for structured policy development and digital literacy programs. This study not only identifies the current usage and perception of GMs but also proposes a roadmap for their responsible and strategic implementation. It emphasizes the importance of interdisciplinary collaboration among educators, administrators, and industry to bridge policy, infrastructure, and skills gaps. By situating GMs in a socio-cultural and technological context unique to Pakistan, the study offers actionable recommendations and insights relevant to both national and global educational stakeholders.</p>