Higher Education Development Program: $300 million World Bank loan being sought, National Assembly told

The National Assembly on Wednesday was told that the government was negotiating with the World Bank for a loan of $300 million to support implementation of Higher Education Development Program, since the country has one of the lowest ratios in the world for access to higher education.
In a written reply presented before the National Assembly, the Ministry of Education said that Pakistan's 5.1 percent people, aged 17-23, are currently enrolled in higher education in Pakistan. The overall literacy rate in the country is 57 per cent- male 69 percent and female 45 percent.
Irrespective of having low higher education enrolment ratio, it was stated that to meet additional expenses, such as 'security consideration and inflation', the government universities have no option other than enhancing tuition fee. The Prime Minister had announced 2011 as literacy year and a number of activities for the promotion of literacy are being undertaken for effective implementation of the program, the ministry said.
"It is imperative to enhance access to quality education in Pakistan so that we join the ranks of developed nations. The Education Policy approved by the cabinet calls for increasing enrolment in higher education to 10 percent of the age cohort by 2015, for which significant financial resources are required," the Ministry explained.
Being a responsibility of the Higher Education Commission, it is essential to have $300 million World Bank loan--$100 million per year for three years--due to financial crunch at the national level to address the issues of quality and relevance of teaching and research.
It said that World Bank-funded IDA loan has been offered to Pakistan at extremely attractive rates and will help alleviate the financial crunch while allowing progress towards implementing the education policy approved by the cabinet. The Ministry of education in a written reply said that the government has increased the recurring funds of the universities from Rs 21.5 billion in 2009-10 to Rs 29.05 billion in 2010-11.