The present study is designed to investigate short-run and long-run linkage between school education and economic growth in Pakistan using annual time series data on real GDP, real physical capital, inflation and general school enrollment for the period 1970-71 to 2008-09. Cointegration between school education and economic growth is found in the present study. The results of this study also confirm the existence of two way direct long-run relationship between school education and economic growth in Pakistan. A two way inverse relationship between school education and economic growth is found in short run. Macroeconomic instability due to inflation retards economic growth and school education only in the long-run. A statistical significant and inverse relationship between school education and poverty is observed only in the short-run. On the basis of the findings, this study recommends reduction in macroeconomic instability and poverty. Policy action aiming at increasing school education and accelerating economic growth is desirable.