Abida Nasreen, assistant professor at the university's Institute of Education and Research, has been suspended for three months, the varsity's spokesman Khurram Shahzad said.
Shahzad said action under the Punjab Employees Efficiency Discipline and Accountability (PEEDA) has been initiated against her for her "grave mistake."
On Friday, a workshop was organised by the Department of Secondary Education at the university during which the "wrong map" of Pakistan without Pakistan-occupied Kashmir was shown.
"Abida was responsible for publication of the map," he said.
Punjab Chief Minister Shehbaz Sharif has also taken notice of the incident and has sought a report from the VC.