ISLAMABAD, May 28: The government is likely to allocate Rs100 billion for the education sector in the next budget aimed at enhancing the literacy rate.

Officials told Dawn on Thursday that planners were proposing a Rs100 billion education budget, including federal and provincial, for 2004-05 compared to Rs80 billion in the current fiscal.

Out of the proposed Rs100 billion, Rs9.6 billion will be made available for promoting higher education against Rs5 billion in 2003-04. Also, the development and recurring budget, which has a Rs9.6 billion funding, will be increased by 5 per cent.

The government plans to stretch the higher education budget to 1pc of the Gross National Product in the next four to five years. The country's GNP is close to $75 billion. Sources said that the PSDP allocation for education was expected to be Rs15 billion against Rs9.6 billion in the current financial year.

The current official literacy rate is estimated to be 52pc which includes those who can read simple Urdu or put their signatures. But the unofficial figure is estimated to be less than 40pc.

According to the National Education Policy 1998-2010, gross primary level will be increased by 105pc till 2020 and a compulsory education act will be promulgated and enforced in phases.