The aim of the study was to compare the quality of literacy skills of 4th grade students at Formal primary schools and non-formal basic schools in Islamabad. A comparative analysis was conducted to compare the writing and numeracy skills among the 4th grade students of Formal and Non-formal schools. The research was descriptive in nature. The population of the study consisted of 100 students (50 students from formal primary school and 50 students from non-formal basic school).All the students taken for study were girls. The researchers adopted purposive sampling technique and collected data through a self-developed achievement test. The study concluded that the non-formal basic school students were lower in writing skill as compared to Formal primary school students, but they were equal in numeracy level. The study recommended that students at non-formal schools should be treated equally with Formal schools and training of teachers should be made mandatory in field of literacy specially in writing and numeracy skills. Gamification, playful pedagogy, pencil grip exercises, and using latest apps for writing and numeracy skills were recommended for both formal and non-formal schools.