Education is a leading driver in reshaping society, human capital formation, political stability, and the economic development of a country. In Pakistan, higher education is referred to as post-higher secondary schooling and is delivered by higher education institutes (HEIs), both in a public and private capacity, which includes degree colleges, universities, and degree awarding institutes. HEIs impart a diverse range of educational programs in life sciences, engineering, and social sciences, etc. Graduates passed out from these institutes provide their services to strengthen society, the government, and the economy of the country. However, the efficiency of these contributions towards overall national development is strongly linked with the quality of education the graduates receive from the HEIs. HEIs can produce productive, skilled, and competent graduates if they can deliver standard and quality education which depends on their financial resources, faculty resources, conducive environment, education-delivery-system, and policies. This review attempts to highlight major challenges associated with higher education in Pakistan and discuss prospective strategies to overcome the underlying challenges.