Enhancing literacy through uniform quality education can be a powerful tool against poverty and extremism in developing countries like Pakistan, where 35% of the population is under 14. This study explores factors hindering human capital formation, focusing on three key questions: determinants of children’s participation in secular, religious, or other activities; how household heads’ perceptions of secular versus religious education influence this process; and the impact of combining work with schooling on academic performance. A field survey of 963 households, covering 2,496 children across 43 urban and rural areas, was conducted from August to December 2009.