In an environment of slow economic growth where many businesses have failed, one sector that has done exceedingly well is the private education business. This study examines the effect of project-based learning (PBL) and 21st century skills on students’ creativity and competitiveness in private schools in Lahore. Today, enhancing 21st century skills to make students more competitive in an external environment is key to education systems around the world. The PBL framework also supports children’s social and personal development. We have used primary research methods to survey teachers at a range of private schools. The results show that 21st century skills embedded in the PBL framework have a positive impact on students’ creativity and competitiveness. Social development influences creativity and competitiveness the most while personal development is the least influential factor.