<p>Education expansion during the past decades did improve workers’ productivity and economic growth; however, it also raised concerns about the mismatch between the education acquired and the education needed by the occupation. Therefore, the objective of this study is to measure education mismatch in the labour market of Pakistan and explore its determinants from both supply and demand-side perspectives by using the Pakistan Social and Living Standards Measurement (PSLM) 2019–20 data. Our results indicate that overall more than 40% of individuals are overeducated, and comparatively, females have less chance of being overeducated compared to males. Moreover, graduates in major disciplines have less chance of being overeducated than graduates in general discipline. From the demand perspective, excess supply of graduates and high unemployment rate in a region also contribute to the education mismatch in the labour market. So, the government needs to increase job opportunities along with enabling ease of business to reduce this education mismatch.</p>