Moral education is a stimulation of the natural development of learners' moral judgement, which in turn, enables them to manage their behaviour. Schools can be successful in developing moral values in students through teachers and a positive school environment. However, due to teachers' packed routines and lack of school attention towards the moral domain, this aspect of teaching is mainly neglected. The current quantitative study aimed to explore teachers' perceptions in private and public sector schools regarding the development of moral values through formal education using a survey. It further endeavoured to draw a comparison between the teachers' perceptions regarding moral education in private and public schools for a better insight into moral development of students for a holistic learning environment. Findings revealed that teachers from both sectors believed religion to be the prime source of moral values. They perceived teaching moral values as important but were less focused on modelling themselves as moral agents. Furthermore, there were no significant differences between the perceptions of public and private sector teachers regarding the importance, efficacy, and practice of moral education. However, a moderate correlation between perceived importance and subsequent practices was found to some extent.