The rate of schooling success in adult population at primary, secondary and higher education has positive relationship with the growth of GNP. The acquisition and application of knowledge by different countries has been governed largely by whether their population has acquired traits and motivations associated with formal schooling. They are dependent heavily on the larger part of economic conditions and ideological influences. Government is encouraging private sector investment in education sector but it more focuses on the urban areas not only denying equitable admittance to basic education for people of backward areas but also perpetuating poor educational status of the people. There are various economic impediments that are hampering the process of development in education sector of Pakistan. These impediments comprise of disparities between region and gender, lack of trained teachers, deficiency of proper teaching materials, poor physical infrastructure of schools and low levels of public investment in primary education sector. A sample size of N1=600 respondents (n1=200 parents, n2=200 students and n3=200 teachers) was taken from n4=50 affiliated schools (from BISE) through multistage sampling technique. Data was collected through interview schedule and then statistical test of ANOVA was used for the purpose of establishing the causal relationship among the dependent and independent variables. Thus the researcher concluded that lack of well designed curriculum, underinvestment in education sector, corruption, inflation, low parental income and cost of schooling deprives the children from getting quality education. Thus increasing the allocation of funds to education sector, provision of administrative autonomy, lessening the direct cost of schooling and improvement in infrastructural facilities are the major remedies for reducing the negative impacts of these economic impediments on education sector of Southern Punjab (Pakistan).
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