A group of local and foreign students of the International Islamic University, Islamabad (IIUI), set up the stall during the weekend at its campus with Israeli flags and pictures of Prime Minister Benjamin Netanyahu.
The stall drew the ire of religious organisations and right-wing student bodies in conservative Pakistan which has no diplomatic ties with Israel and where every negative incident is linked with "Jewish Conspiracy" to harm Muslims.
A university official said they condemn the showcasing of Israel and the dean of the faculty of management sciences, a student affairs adviser and a female lecturer have already been suspended in connection with the incident.
During the debate, resolutions were also passed against Israel for alleged brutalities in Palestine.
Some female students linked to the student wing of the Jamaat-i-Islami had protested the showing of Israel in a positive light but nobody took notice until local media reported it and criticised the University for allowing the projecting of Israeli culture.