ISLAMABAD, April 24: The government has decided to fix five per cent GDP growth target and make an 100 per cent increase in the budget for higher education in the fiscal year 2003-4.

Official sources told Dawn on Thursday that despite the Iraq war, the government had no plans to reduce its GDP growth target of 4.5 per cent, set for the current financial year.

It was considered appropriate to have 5 per cent GDP growth target in the next budget. Over the next five years, the government had planned to take the economy at 6 per cent plus growth mode from the current level of 4.5 per cent.

Sources said that it had also been tentatively decided to fix Rs510 billion revenue collection target in the budget for the fiscal year 2003-04 against the current year’s target of Rs460 billion and the budget allocation for higher education would be enhanced by 100 per cent — from Rs4.3 billion to over Rs7 billion.

Former education minister and chairman of the higher education commission Dr Attaur Rehman, when contacted, confirmed that the government had decided to double the budget for higher education. “I have just received a letter from the Finance Division that we will be extended over Rs7 billion for this purpose in the next budget,” he added.

Finance Minister Shaukat Aziz too confirmed it.

Replying a query he said that oil prices came down and transporters of Karachi had reduced fares. The Punjab government was being pursued to exert pressure for reduction in the transport fares in the province, he added.

Responding to a question, he said that overall development budget set at Rs164 billion, including poverty alleviation programme, was also substantially being increased in the next budget.

However, the finance minister warned that political and regional stability were pre-requisites to achieve future growth targets.