KASBIT Business Journal, 14(1), 129-142, March 2021 Higher Education and Human Capital Building: Zehra Habib & Sarwat Perspectives of Faculty and Students 129 Nauman Higher Education and Human Capital Building: Perspectives of Faculty and Students Zehra Habib Associate Professor and Senior Fellow Institute of Business Management, Karachi Sarwat Nauman Associate Professor Institute of Business Management, Karachi Abstract A major role of higher education is to generate human capital for economic growth of a country. The purpose of this qualitative research was to explore how higher education programs are contributing to the development of human capital. The head of the department (HOD) and three faculty members of the Department of Education of a private university in Karachi were interviewed individually for their standpoints on contribution of their department for building human capital. Four focus group interviews were held with students of the department regarding their viewpoints on how the knowledge they acquire was helping them engage practically with industry. Findings from data of HOD projected that instead of tertiary education being the base for developing human capital, the foundation should be laid from the school system. Faculty believed that though they were trying via needs analysis and digital resources to understand industry requirements, management has to play a role in connecting faculty with industry. Students described courses as theoretical and were very vocal about incorporating practical and experiential learning. The education department of this university lacked in the generation of human capital. The way forward is to take pragmatic steps to encourage building of human capital via tertiary education as this is a main factor in ensuring economic progress. Key words: Human capital; economic growth; higher educational institutions; engagement with industry. Introduction Apart from the role of education to bring about social change and produce responsible citizens of society, it is extensively recognized that a major aim of education is to generate human capital for local, nationwide and worldwide economic growth. (Bloom et al., 2014, Chankeseliani, et al., 2021). The development of knowledge and skills via education for enhancing output and creativity of students through planned instruction is known as human capital development (Enyekit et al., 2011). Investments in education are called human capital not only because of obtaining larger economic gains, but also because the workforce cannot be detached from the resources acquired through education (Amadeo, 2020). Educating youth at the tertiary level is a huge step towards acquisition of strong human capital for any country which aspires for economic rewards in the global scenario (Mohammed & Rufai, 2016).