Private Investment in Education Sector and Its Impact on Literacy Rate: Evidence From Pakistan

The objective of this research paper is to analyze the rapid growth of private education sector in Pakistan. For this purpose, we used secondary data collected from various issues of the Economic Survey of Pakistan for the period 2000- 2015. The dependent variable was Literacy rate while independent variables include: allocation of fund, enrolment rate of students, no. of institutions and number of teachers. Ordinary Least square (OLS) method was used to draw the results. Our findings show that private sector has played a vital role in promotion of literacy rate at lower and upper level of education. We suggest that private sector may be encouraged to make more investment to improve literacy rate and human capital formation.