In this ever changing and developing world the importance of education cannot be overemphasized. However, the importance of education and its links with all facets of development in technological advancements all over the world are yet to be fully explored, especially in the developing countries. The dynamics and the ways through which education intervenes through its different levels in daily life to bring changes are complex. The following research study is an attempt to explore the link between education and socioeconomic development. It focuses on higher education and its impacts on socioeconomic development in Pakistan. This research aims to give an insight into higher education system in Pakistan and its direct impact on development in this millennium of technological advancement. It also provides analysis of the higher education system in Pakistan and its outcomes, education policies at national level with implementation problems, presenting global scenario by giving examples of higher education systems in developed and developing countries and their roles in national development. It finally suggests a model of higher education called University- industry linkage ‗Triangular Model of Higher Education‘ to boost economy in Pakistan.