Afghanistan has been historically linked with Pakistan through trade and social ties. These relations are based on fundamental economic and geopolitical reasons. However, there have been many ups and downs in our foreign policy relationship which affects our economic relationships as well. There is a much greater economic and a broader development potential which can be realized by strategic policies by both countries. This will not only help the region in developing more advanced economic base but would also result in peace and stability of the region. Areas where such potential exist include human capital, investment, trade in goods and services and policy coordination. Human capital development lies at the core of nation building. Afghanistan therefore, is in need of support to develop its education sector. Pakistan may play an effective role toward this objective by not only helping to develop Afghanistan’s education infrastructure but also by opening up its own education facilities for aspiring Afghan students. HEC has provided such an opportunity by offering scholarships to 3000 students in early 2017. It is proposed that besides such schemes, other incentives such as improved visa facility for students at all levels of education may be extended.