This study was motivated by the initiatives of the Higher Education Commission (HEC) of Pakistan that provides various conditional cash transfers (CCTs) to youth education in the less developed areas of the country. The CCTs are given to youth in the shape of HEC Need-Based Scholarships (HEC-NBS) and the Prime Minister's Fee Reimbursement Scheme (PMFRS). This study investigates the impact of the CCTs on the educational performance of the students in the under-developed areas of Pakistan. Data were gathered through self-administered questionnaires from the students who were awardees of the scholarships. A total of 350 responses were used for the final analysis. A statistical package for social sciences (SPSS) version 25 was used to get the data analyzed. It was found that the two CCTs (HEC-NBS and PMFRS) substantially affect the educational performance of the students. The PMFRS was the most dominant predictor of the students' performance indicating a high tangible source of students' motivation. This study helps in both theoretical and practical spectrums. It practically helps expand the higher education to every nook of the country as well as light the policy-making outlines to sustain the CCTs for the better future of higher education in Pakistan.