In Pakistan, both primary and secondary education is facing a downward trend. There are a variety of other inefficiencies that Education Sector in Pakistan suffers. These include poor efficiency standards of program implementation, poor funding or financial input, and poor management standards, supervision and teaching. Consequently, Pakistan has the lowest literacy rate even among countries of similar resources and similar social and economic setups.Efforts have been made to reduce the inefficiencies in the education sector but these efforts are not sufficient. The increase in supply of educational infrastructure or the elimination of the supply side constraints can play a vital role in increasing literacy and education of the people. The allocation of budget in the development of the education sector has been considerably low. The quality of teachers appointed is also critical in case of Pakistan. The minimum qualification requirement is that of matriculation which is significantly low. Training programs should be provided to the government teachers. In case of private schools as well the quality of teachers is to be improved.Education offers the base for socio-economic development. The main reason why poor countries do not grow is lack of education. In spite the present government in Pakistan has taken immediate measures to improve the quality and quantity of education, the quality of education is on a declining path. The quality of teachers also plays a significant role in the improvement of education sector. The education sector of Pakistan is facing new challenges and yet needs to be developed further more.