| Summary: | We explored the contribution and effectiveness of state and non-state institutions in rural development efforts in highlands (Khyber Pakhtunkhwa [KPK] province) of Pakistan. This study employed mixed-methods research design and data were collected from 300 household heads, randomly selected from six villages from two purposively selected districts Mansehra and Nowshehra. Findings showed people in KPK were deprived of due to conflicts, conspiracies and terrorism, poor governance, small landholdings and subsistence farming followed by sluggish marketing system, insufficient education and training for people, and inadequate employment opportunities. Regarding contribution, non-state institutions had more contribution as compared to state institutions. T -test analysis showed that the non-state institutions had an effective provision of agricultural extension and forestry advisory services, education, health services in remote areas, skill development, and provision of microcredit schemes. The results of F -test statistics showed highly significant difference among the perceived effectiveness of rural development activities of different types of non-state actors (localite, cosmopolite, and religious/faith-based) working in the research area. This study recommends state-owned rural development departments revisit their working mechanism and develop synergistic working relationship with the non-state institutions in discharging rural development efforts.
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