Literacy rate goes by ability to read a local newspaper. While an improvement in that is good. Pakistan still can do a lot better. Better educated people can only help the economy.
If you want to talk about Libya and Iraq then look at the facts they both were quite strong and heavily armed, and it wasn't until foreign intervention that those countries fell. the problem with those countries was their governments didn't deliver a fair government. Otherwise Libya made a lot of progress, it even had free healthcare. Gadaffi was unfair and greedy but the high education rate is what got his country there. No one looks at Libya and thinks if only they had spent more on weapons and less on education.
Also civil wars kind of make the countries strength useless because they can create divisions within the armed forces.