Literacy in Papua New Guinea has fallen below 50 per cent of the population, the PNG National Research Institute says.
The figures, obtained from national census data, show a 6 per cent drop since 2000.
The Institute is calling on the government to do more to curb the literacy rate.
Director Thomas Webster told Pacific Beat the statistics were based on surveys and did not test "functionary literacy".
The institute says the government should do more to ensure basic education is available.
Institute director Dr Thomas Webster said analysis of census figures found the literacy rate was 56 per cent but a recent study has found the actual rates are much lower.
"The reason being that the census questionnaire was based on asking people: can you read and write in English or Tok Pisin or Motu?
"And if people said yes they were ticked off and if they said no they were considered illiterate and so it was based on that question.
"There wasn't any real test to determine whether they had any functional literacy rate or not.
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