Higher and More Effective Spending on Education and Health levels of education. Consequently, the unemployment rate varies by level of education of workers. It is by far the highest for the most educated workers at above 16 percent, as compared, for example, to 6.4 percent for workers with secondary education. These findings have the fundamental implication from the labor market perspective that the rate of expansion of the capacity of higher education system in the country should be reduced given the present stage of development of Pakistan. The labor market is currently able to absorb a higher percentage of the output from primary and secondary schools. 26.3. Education Policy Before the recommendations are laid out, it is necessary to quote Article 25A of the Constitution of Pakistan, which states: ‘The State shall provide free and compulsory education to all children of age five to sixteen years in such a manner as may be determined by law.’ This Article has fundamental implications for education policy. Emphasis on Primary and Secondary Education: The most important goal of Education Policy must be to facilitate near 100 percent net enrollment of boys and girls in primary, middle, and secondary education. Currently, the NERs are substantially lower. Therefore, there is a need for a substantial increase in school enrollments by 2024-25. Consolidation of Higher Education: There has been a big increase since 2009-10 in the numbers of public colleges and universities. There is a need for imposing a temporary moratorium on the establishment of new higher education institutions. Instead, the emphasis should be on ensuring the presence of adequate faculty in each institution. Expanding Coverage and Improving Quality of Schools: There has been a big contraction in the number of public primary schools. There is a need to determine if there is consequently a‘gap’ in the access to education. All such gaps should be filled. Adequate coverage will need to be provided especially for girls and in relatively remote areas. Policy on Cost Recovery: It is clear from Article 25A that public primary and secondary education should be free. In the case of higher education, a policy of equal sharing of the O&M cost may be adopted between the students and the Government. A scholarship fund may be established for poor but deserving students. Raising the Level of Government Spending on Education: The financial projections in Chapter 1 indicate that with mobilization of more tax revenues there will be some‘fiscal space’ for expansion of the level of public education spending from 2 percent to 2.5 percent 271