Pakistan is an underdeveloped country, full of socio-economic problems where a few oppress and exploit many. One of the most significant reasons, in this context, is the high illiteracy rate in the country. However, can high literacy rates guarantee peace, prosperity, and justice in any society? Clearly, not. There are several countries where the literacy rate is very high yet it remains relatively under-developed. However, it is also a fact that the countries where the literacy rate is high have been able to emerge as economic powers. In this regard, Freire's concept of literacy education is very helpful in that it is essentially hopeful in nature and it is this optimism which gives it the potential to transform oppressive situations.