Education is a key to political stability and socio-economic development of a nation. Unfortunately, there are diverse systems of education providing different types of education leading to stratified education system. The researchers investigated education system of Pakistan, its functioning and problems and used mixed method approach. In quantitative section researchers adopted survey method and questionnaire as tool for a sample of 210 respondents through multi-stage systematic sampling and SPSS for analysis. In qualitative part researchers used interview guide as a tool for 35 respondents (university level teaching faculty and students) and adopted Domain Analysis technique for qualitative data analysis. The results of present study indicate that education brings political stability by realizing the people their national rights and duties and thus through such awareness leads to harmony, participation and cooperation. Education shapes the personality of the people to play part in the society. Education is a fundamental asset to empower in terms of human rights and gender equality. Education facilitates the individual to survive in the labor market. There is need to eradicate class-based educational streams to develop unified national education system as promised in Constitution of Pakistan to guarantee the development of society. Education has emerged as a business venture and caught the attention of private sector, which has negative impact on the quality of learning and research.