The main focus of this study was to investigate the class level that was equal to the level aimed at by national (Pakistan) literacy definition. It was conducted at the wide range in all modes of education. It intended to investigate the class, gender and locality that could influence achievement of class three, four and five students in public, private, madaris and non-formal systems of education and to find out which class stood at the level that was aimed at by national literacy definition. For this purpose a test was prepared in the light of national literacy definition. This test consisted of three types of papers for the assessment of reading, writing and arithmetic standards. However, the test was administered in the beginning at a small scale to make sure its validity and whether feeding of data into SPSS Package & analysis were feasible. Five districts of the Punjab were selected as sampled districts on the bases of literacy rate and geographical situation. The test was administered to the class three, four and five in the institutions of sampled districts.