Universities are the hub of knowledge creation which totally based on their intellectual resources, currently the condition of Pakistan private sector universities are facing huge trouble. Universities are lacking from all their intangibles resource which can help them in successive performance, these resources normally based on the intellectual capital which is usually considered as an intangible capital of universities. Pakistan higher education is ranked at 150 th spot out of 189 countries and also far behind in research productivity as compared to the neighbour countries. Therefore, current study will focus intellectual capital as a key determinant in the successive performance of private universities performance in Pakistan with mediating role of innovation in terms of speed and quality. The current study highlighted the important flaws in higher education institutions of Pakistan and provides possible solutions in the form of intellectual capital and innovation that can enhance the performance of HEI's. Positivist paradigm and deductive approach has been used in current study, primary data collection shall be conducted through questionnaire and the target population would be considered full time faculty members of private universities operating in Pakistan.