It is argued that masses in Pakistan are excluded from the mainstream progress of education resulting in social unrest and adverse state of human development. This paper examines prevailing inequality in and exclusion from education in the Khyber Pakhtunkhwa province of Pakistan, and provides an empirical base for designing an appropriate policy framework to mitigate the underline issues. Towards this end the household-based education and Inequality-adjusted education indices are derived using Foster-López-Calva-Székely (FLS) methodology at the provincial, and district levels from the most recent Pakistan Social and Living Standard Measurement (PSLM) survey 2014-15. The provincial analysis is elaborated at the urban and rural regions as well. The distribution of these indices across households are utilized to measure inequality and inclusiveness coefficients by employing “Atkinson’s inequality measure” and “sixty percent of median as threshold of exclusion,” respectively. At the district level the impact of economic, social, demographic, and locational factors on inclusiveness of education are also investigated using linear regression. The results demonstrate that KPK households reside on average in low category of actual education level experiencing high inter-regional and intra-regional disparities and exclusions. At the district levels, the inequalities in educational achievement and exclusions are even more pronounced, indicating that aggregated analyses suppress the intra-regional disparities and segregations. Based on these findings, it is asserted that investment in social infrastructure specifically educational, health, and law and order facilities, development of agriculture sector, and eradication of gender discrimination, are important factors to promote inclusive education in the province.
