This study brings to light the fact how much teaching English through literature renders any pay off in developing and honing the EFL/ESL learners’ lexical competence. This study strives to investigate the role of literature in developing the ESL/EFL learners’ lexical competence, find out the ESL/EFL learners’ attitude towards teaching lexical competence through literature, know the lexical competence level of the ESL learners, examine ESL/EFL learners’ vocabulary knowledge and get insight into the difference between the ESL/EFL learners’ receptive and productive knowledge of vocabulary. In the Pakistani context, literature seems to be inadequate language teaching tool at HSSC level. To achieve the set objectives, the researcher went for the quantitative research methodology. So, a questionnaire comprising of 15 items encompassing the different aspects of vocabulary was designed to collect data from 600 subjects (male/female) of intermediate level. The researcher has also conducted “Vocabulary Level Test” and “Word Associate Test” as achievement tests. The collected data were analyzed through software package (SPSS XX). The findings of this study explicitly reveal that the EFL learners remain unable to develop lexical competence when they are taught English through literature. This study recommends that the teaching of English should be application oriented and task-based strategies and activities should be resorted to by the EL educators.