Abstract: Education is nationally and internationally recognized as one of the most important ways and means for promoting economic development. Here arises a question on what type of education to be imparted for the national development in terms of primary, secondary and tertiary education. Knowledge-based challenge within a globalized economy is accelerating a fresh consideration of the role of higher education in economic development and its expansion. In the past, it was seen that the higher education was very much costly and at the same time, it was really inefficient public service which could only benefit the wealthy and privileged class. Importance of education has now been realized to be successful in the field of economic development. A short look upon some recent research findings indicates that higher education is a determinant of increasing income. Additionally, the higher education may create awareness about how to increase tax revenue, boosts savings and investment, improve a nation’s health, contribute to reducing the rate of population growth and enhance the adoption of technology in order to strengthen the governance. Colleges and Universities have an important role to play in regional and national economic development efforts through producing quality graduates. Undoubtedly, the higher education and economic development complement to each other. To gain national economic development, colleges and universities must be the key partners throughout the development process of the country.