Abstract
Drawing on time-series data from Khyber Pukhtun Khuwa (K.P.K) province (the Northern
Pakistan), an attempt has been made to evaluate the role of investment on primary
education sector in improving literacy rate of Peshawar district. Using statistical analysis, a
relationship between literacy rate and its potential determinants has been tested. The
findings revealed that the major determinants are the budgetary allocation to primary
education sector and the number of primary schools that matter positively and
significantly. As studies employing good data from developing countries are rare, this
paper can potentially make a good contribution to the existing literature, with special
reference to Pakistan.
