The main objective of the study was to investigate the assessment literacy of university teachers. The study was quantitative in nature. A survey was conducted to investigate the assessment literacy of regular teaching faculty of universities. A total of 5755 in public and private sector general universities in Lahore, Pakistan constituted the population of the study. A sample of 500 university teachers was randomly selected. Teachers’ Classroom Assessment Literacy test was adapted to collect the data. It was developed by Mertler (2003). It covers seven standards for measuring teachers’ competence in educational assessment of students. The test consisted of 35 MCQs type items. It was piloted, and the Cronbach Alpha reliability coefficient value was found to be 0.89. The findings of the study revealed the significant difference between the mean achievement scores of classroom assessment literacy of private and public sector university teacher. It highlighted the need to develop related training sessions and programs to deal with the issue of low level of teachers’ classroom assessment literacy.