Abstract
In Pakistan, Six to ten percent of matriculate students seek admission in technical institutions while the required number for a country to be on the track of progress is seventy percent. In Khyber Pakhtunkhwa, on the average 4220 Polytechnic Pass-outs entered into the labour market annually during the last five years (2007-11). There is a general concern that the performance of polytechnic graduates in industry is not satisfactory. This study was carried out to evaluate the demand and performance of polytechnic graduates in Industrial Estate Hayatabad, Peshawar. The study reveals that polytechnic graduates do not match the employers’ expectation and their performance is not much better than other technicians working at same level. It is therefore, suggested to include one year practical industrial training in curriculum for Diploma of Associate Engineer (DAE), arrange industrial exhibitions every year, improve standard of technical education through effective management and link it to industry.