Pakistan receives a large amount of international aid under development and economic assistance from bilateral and multilateral donors every year out of which a large portion is used to improve the education sector. Punjab, Pakistan’s largest province is also receiving international aid regularly for uplifting its performance in the education sector. This paper looks at the impact of international aid to Punjab for education with reference to the performance of some key education indicators. Analysis of the data  and findings have helped review the usefulness of international aid to Punjab for education, and also how it might be reorganized for maximizing the utilization and benefits. The findings have been reviewed in the light of modernization and dependency theories, and supported through anecdotal evidence provided by various officials within the bureaucracy of the education department. I have provided a brief historical recourse from the last three decades to describe both effects as well as the processes of aid formulation together with the conditionalities and politics of aid that can have a negative impact on the overall development process for which the aid is originally provided for. The findings indicate that there has been marginal improvement in some performance indicators and a decline in some, inferring that the impact of aid has not been very significant and perhaps not worth the political cost that Pakistan has to pay for acquiring this aid.