Education is the central key to the process of development and it plays a noteworthy role in achieving the Millennium Development Goals. Education is one of the powerful instruments for reducing poverty and inequality by enabling the people to use their potentials to the self-actualization level. Education is the most important prerequisite for the process of development. Many socio-political and economic barriers of development in education sector diminish its effectiveness.These barriers are lack of resources, inadequate infrastructure, lack of well designed curriculum,underinvestment in education sector, low quality teachers training and rigid socio-cultural practices. The quality of education in Pakistan is very low due to grade repetitions, low enrollment rate and high dropout rates of the students. Only attending the school is not ample but there are also other constraints related to community attitude, infrastructure development, and school management that contribute to lower the literacy rate of Pakistan. Unfortunately the literacy rate of Pakistan is lowest among other South Asian countries.