The difference in quality of types of infrastructure, which include plant, power, port, telecommunication, road, and railway etc play crucial part in educational development. Lack of infrastructure had lead to higher cost of implementation of educational facilities and reduction in productivity due to high literacy rate. Moreover the role of Small and medium-size enterprise (SME) sector provides funds to rural areas where most of the poor people reside therefore increasing their standard of living and ultimately leading the awareness about education and low illiteracy rate. Deregulation, reduced corruption and improved governance are some of the important factor to help in allocation of resources. Further on, on the government end, the regulations on the private sector need to be eased and efficient which would not only reduce the burden on the private sector but also encourage competitiveness and efficiency in the institutions.In the case of Pakistan, a sustained growth can be achieved by improving the quality of the labor force through the improvement in the educational sector and also reducing the gender education gap to yield maximum payoffs. Although the current situation is unsatisfactory and there is a long way to go but it can achieved through well-defined educational policies and reforms to be implanted in institutions to stimulate innovation, intensify human capital base of Pakistan and enhance the quality of schooling. Initiatives have been taken by the nongovernmental agencies and local communities in working together with the government to raise the education standard especially girls in the poor rural areas. In conclusion improving educational standards would lead to reduction in problems of malnutrition, infant and child mortality and disease prevalence causing a sustained economic growth.