E-learning has been increasingly adopted by Higher Education Institutes (HEI) in various countries all over the world. A number of research studies have indicated the effectiveness of E-learning in terms of its innovativeness. However, there are only few studies dealing with the contribution of E-learning in developing countries like Pakistan. Hence, this study aims to investigate the role of E-learning in improving the performance of Pakistan’s educational system. The present study investigates the current level of ICT penetration in Pakistani Higher Education with specific reference to E-learning. In addition, the study investigated teacher’s perceptive regarding the awareness level and various factors that affect E-learning implementation in Pakistan. The study employed a mixed methodology using semi-structured interview (n=10) and a survey (n=51) among teachers in Pakistan. The study results indicated that flexibility, low cost, easy accessibility and ease of teaching are the major advantages of e-learning. In addition, the major challenges in implementing e-learning in Pakistan’s educational system are in-effective user learning, inadequate power supply, technical support, lack of user participation and English language. From the study, it is clearly evident that teachers possess a positive attitude towards E-learning implementation in education system of Pakistan. Finally, the study concludes by providing strategies and recommendations to improve the adoption rate of ICT in Pakistan’s higher educational system.