Foundation Assisted School (FAS) program is the leading program of Punjab Education Foundation, initiated to improve the quality of education and to bring the marginalized children into the schools. PEF (principal) makes the private school (also called FAS schools) its partner (agents) and assign the task to provide free and quality education to marginalized children. This study evaluated the FAS program by applying principal agent theory. This study assessed the role of agents (heads of FAS schools) in the enrollment of marginalized children and enhancing the quality of education. Besides, study also investigated about the hidden activities of the agents. Using the linear probability model, descriptive analysis and ordinary least square model, the study established that the agents are not playing an effective role in increasing the enrollment of marginalized children rather they are increasing their benefits by enrolling and providing education to non-marginalized children. Agents were doing the hidden activities to increase their monetary as well as other benefits on the cost of principal. However, the study revealed that the quality of education of FAS schools is better than the government schools. Supervisor:- Dr. Muhammad Nasir