Various efforts have been made to overcome the problem of illiteracy throughout the world, particularly in the developing countries. But, none of these had valuable results. Therefore, in most of the developing countries like Pakistan, governments are concerned about handling the literacy problem effectively. The present paper was conducted in view of the poor literacy condition in Pakistan.it focused upon the analysis of existing literacy situation in Pakistan as well as finding out workable suggestions for overcoming the literacy problem. The study revealed that there was no use of broadcast media or the motivational techniques to attract the illiterate people to the literacy centers. Above all there was no consistency in the literacy programmes due to political factors. The main objectives of the study included to analyze the past literacy programmes in Pakistan and to create a distance education literacy model for Pakistan. The modern way for imparting literacy should be used rather than following the conventional methods. For this purpose a distance education model for enhancing literacy is proposed to be used in Pakistan. This is a theoretical model workable in the low literacy areas with suitable physical provisions.