The positive relationship between education and sustainable economic development is now widely recognized

The positive relationship between education and sustainable economic development is now widely recognized. This study develops a dynamic model for population and primary education of Pakistan. Primary education sector in Pakistan is operating in both public and private sectors. Pakistan has a clear socioeconomic division of rural and urban areas that get different priorities in allocations of public funds, believed to be instrumental for universal primary education. The public financial allocations are available to some extent from different publicly available sources but that too on country basis and not on area basis. On the other hand, there is no data available for private sector investment. Based on its assumptions this study estimates area-wise public and private sector investment in primary education in Pakistan, predicts development path of its population and literacy. This study finds that Pakistan may not be able to achieve universal primary education by 2015 due to alarming dropout rate and suggests channeling her resources to reduce it.