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This publication is jointly prepared by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
GmbH and the International Labour Organization (ILO).
The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with
their authors, and publication does not constitute and endorsement by GIZ or ILO on their respective Board
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Author
Sabur Ghayur
From Pakistan to the Gulf region: an analysis of links between labour markets, skills and the migration
cycle
Temporary labour migration is often touted as a triple win: a win for destination countries that can
support a level of economic activity that would be impossible without foreign labour; a win for
countries of origin because it lowers unemployment and brings in remittances and skills; and a win
for migrants who can earn more income and escape poverty. However, governments have yet to
develop a system that ensures that the triple win delivers benefits equally; today it is migrants who
are ending up short-changed.
Despite the substantial benefits generated by the migration flow between Pakistan and the Gulf
Cooperation Council countries, many challenges remain to ensure a fairer distribution of the
triple-win profits. Much has been written on the abuses of migrant workers during recruitment and
employment throughout the migration cycle, but less is known about labour demand, its relationship
to skills and the impact of the recruitment process on these aspects.
Lack of information regarding qualifications, skills, wages and how demand will evolve inhibits
informed decision-making by public and private institutions as well as by migrant workers. This
results in lost opportunities or mistakes in strategy planning in and between source and recipient
countries. For instance, there is no system of mutual recognition of educational attainment and
acquired skills based on comparable standards for low-skilled or semi-skilled occupations.
This report addresses some of these issues, with a special focus on the role of skills in Pakistan,
including skills training, certification, skills matching and recruitment practices. Written by Sabur
Ghayur, the report is a result of a partnership between the International Labour Organization (ILO)
through its European Union-funded South Asia Labour Migration Governance Project, and the
Inclusive Development of the Economy (INCLUDE) Programme, a joint Nepal-German initiative
under the guidance of the Nepal Ministry of Industry, with technical assistance provided by the
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, commissioned by the
German Federal Ministry for Economic Cooperation and Development (BMZ).
The report is a complement to Labour Market Trends Analysis and Labour Migration from South
Asia to Gulf Cooperation Council Countries, Malaysia and India, prepared by ILO and GIZ Nepal.
We hope that these reports will be useful in guiding the Government and other stakeholders in
Pakistan to better align their systems for facilitating and supporting male and female migrant
workers in selected sectors and trades, ultimately leading to increased employability and enhanced
skills among migrant workers from Pakistan.
Foreword v
Executive Summary xi
Abbreviations xv
1: Introduction 1
1.1 Background 2
1.2 Scope of Pakistan study 3
1.3 Organization of the report 3
2: Employment situation 5
4: Managing migration 17
4.1 Managing migration: Institutions 19
4.1.1 Bureau of Emigration and Overseas Employment 19
4.1.2 Overseas Pakistanis Foundation 17
4.1.3 Overseas Employment Corporation 20
4.2 Managing migration: Legal and policy framework 20
4.2.1 Emigration Ordinance, 1979 20
4.2.2 Emigration Rules, 1979 21
4.2.3 National Skills Strategy, 2009-13 22
4.2.4 Memoranda of understanding on labour migration 23
4.3 Managing migration: Fees, preparation and insurance 23
5: Matching migrant workers demand and supply 27
5.1 Skill supply for international migration 27
5.2 Process of matching skill demand and supply 28
for migrant workers: Actors involved
5.3 Role of private overseas employment promoters 30
in matching skill demand and supply
References 47
Annexes
Annex I: Additional tables 49
Annex II: Mission, vision and objectives of TVET Authorities 51
Annex III: Stakeholders consulted for the study 53
Tables
Table 1. Unemployment rate in Pakistan, various years 5
Table 2. Migrants from Pakistan, 2008–15, by major countries of destination 9
Table 3. Bureau of Emigration and Overseas Employment 11
classification of occupations, by skill category
Table 4. Top-15 categories of occupations for Pakistani 11
migrant workers, 1971–July 2015
Table 5. Occupation of current migrants before migration
and while abroad 12
Table 6. Major destination countries of Pakistani 13
women migrant workers, 2008–13
Table 7. Number of Pakistani women migrant workers, by job, 2008–13 14
Table 8. Workers’ remittances, FY 2006–15 14
Table 9. Top-five remittance-sending countries to Pakistan, FY 1992–2015 15
Table 10. Chapters and thematic areas of the Emigration Ordinance, 1979 21
Table 11. Payments and service charges paid by 24
prospective overseas migrants
Table 12. School enrolment, by grade level, 2013–14 34
Table 13. Trades, skills and professions in demand in Gulf countries 40
Figures
Figure 1. Annual flow of Pakistani migrant workers, 2005–15 2
Figure 2. Skill composition of workers who went overseas 10
for employment, 2015*
Figure 3. Obtaining and processing labour demand – Stage 1 28
Figure 4. Recruiting in Pakistan – Stage 2 29
Boxes
Box 1. Pakistan remittance initiative services 15
Box 2. Functions of the Ministry of Overseas Pakistanis 18
and Human Resource Development
Box 3. Vocational training institute in Pakistan established 37
by foreign employers
Annex tables
Table A1. Share of industry in total employment in Pakistan, various years 49
Table A2. Share of agriculture in total employment in Pakistan, various years 49
Table A3. Share of services in total employment in Pakistan, various years 49
Table A4. Share of wage and salaried in total employment in 49
Pakistan, various years
Table A5. Share of own-account workers in total employment in Pakistan, 49
various years
Table A6. Share of informal sector in total employment in Pakistan, 50
various years
Table A7. Share of employed working more than 50 hours a week in 50
Pakistan, various years
x From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Executive
Summary Executive
Summary
M
igration of skilled, semi-skilled and low-skilled workers has been consistently easing the
labour market situation in Pakistan and providing opportunities of employment abroad
to workers for more than four decades. From 1971 to 2015, around 8.7 million workers
migrated from Pakistan for employment formally, with a surge in recent years, at an average 560,890
workers a year from 2008 to 2015. As part of an International Labour Organization and German
Development Cooperation multi-country study, this report looks at the characteristics of the labour
market supply and demand in Pakistan and the main destination countries for migrant workers, the
relationship of supply and demand to skills and the impact of the recruitment process on all three
facets.
With 188 million people, Pakistan is the sixth most populous country in the world. Although labour
force participation overall is considered low, Pakistan’s labour force ranks as the tenth-largest in
the world. The country is confronted with a significant gap between the demand and supply of
workers; with the number of annual jobseekers exceeding employment opportunities. About four
million people are unemployed. Due to low productivity and low remuneration in the huge informal
and agriculture sector, the underutilization of the workforce is considered a serious labour issue for
Pakistan. Such a reality has necessitated policy-makers to focus on labour migration as a coping
strategy.
While Pakistani migrant workers can be found in almost all countries of the globe, most of them
concentrate in a Gulf Cooperation Council (GCC) country. The top-five destination countries are
Saudi Arabia, United Arab Emirates, Oman, Bahrain and Qatar, with most workers going to Saudi
Arabia and the United Arab Emirates. An overwhelmingly large reliance on these countries for jobs
(thus remittances) is a cause of concern for Pakistan due to the heightened vulnerability associated
with having so many workers in a few places that are not immune to economic fluctuations.
In terms of skill composition, low-skilled workers constituted around 43.4 per cent of total migrant
workers during the 1971-2015 period; combined, low-skilled and semi-skilled workers made up
more than 80 per cent of the total migrant workers. Female labour migration was negligible, at less
than 1 per cent of the total.
xii From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
MANAGING MIGRATION
The Ministry of Overseas Pakistanis and Human Resource Development and, specifically, its Bureau
of Emigration and Overseas Employment (BEOE) have the primary responsibility for managing
migration. The BEOE is a regulatory body that controls, regulates, facilitates and monitors the
foreign migration process through the Emigration Ordinance, 1979 and the Emigration Rules, 1979
(updated in 2012). It issues licenses to the private overseas employment promoters. The BEOE has
established seven Protector of Emigrants Offices in areas of Pakistan with a heavy outmigration of
workers to provide prospective migrants with information and to oversee the processing of their
documentation.
Community welfare attachés posted abroad to Pakistan embassies or missions look after the welfare
of Pakistanis overseas, including workers. They help resolve disputes between employers and
workers and report regularly on the labour market situation in their respective countries and the
potential for employment of foreign workers.
The Overseas Pakistanis Foundation also looks after the interests of overseas Pakistanis and their
families living in Pakistan. In addition to managing a pension fund, the Foundation provides a range
of services, such as pay-outs for death compensation for migrants who die while working abroad and
financial grants to the destitute families of overseas Pakistanis who die or are permanently disabled
while abroad, provision of education and vocational training, scholarships, housing schemes and
facilitation centres at the airports.
There are established mechanisms that facilitate recruitment or act as a bridge between a prospective
employer and labour providers. The labour providers comprise recruitment agencies in countries of
destination, overseas employment promoters in Pakistan and even workers who seek employment
on their own through relatives, friends or online applications. They negotiate terms and conditions
with employers. Outside the public sector and multinational corporations that pay for services
provided by overseas employment promoters and cover the cost of workers’ travel expense, the
majority of work visas obtained by overseas employment promoters invariably involve payment
to employers or a local recruiting agency. This payment is then passed on in the form of fees to the
migrating workers. The overseas employment promoters or their agents undertake regular visits
to the countries of destination to connect with potential employers and recruiting agencies. On
occasions, overseas employment promoters may learn of labour demand through the community
welfare attaché office.
All GCC countries apply the kafala, or sponsorship, system, which also governs the recruitment
process. The recruitment and selection of workers for employment abroad and in particular to GCC
countries, varies widely by sector, occupation and firm size. No worker from Pakistan can obtain
employment (thus an employment visa) while on a social visit to a GCC country; quite often persons
are deported, particularly in Saudi Arabia, who try to seek employment when holding an Umrah
(pilgrimage) visa and/or they have overstayed some other type of visa.
Executive Summary xiii
Interviews with private employment promoters revealed that: (i) multi-skilling is an increasing
requirement of employers in GCC countries; (ii) training of two to three months is considered
sufficient to meet the skill requirements of a significant number of employers in the countries of
destination; (iii) such training needs are met by the non-formal modes of training provider; (iv) such
training is meant for trades leading to preparation of semi-skilled workers; and (v) public sector skill
providers are largely unaware of or even seem to be unconcerned about such demand and training
requirements – their entry requirements are largely a secondary school certificate or at least a middle-
school level of education, which thus is not applicable to the majority of prospective migrants.
Increasing the technical and vocational competence of the workforce is high on the agenda of policy-
makers. This is reflected in the establishment of a Technical and Vocational Education and Training
(TVET) Authority in all provinces and the National Vocational Technical Training Commission
in Islamabad. The Commission covers training policies, laws and regulations, skill standards and
curricula, accreditation, instructors’ training, performance evaluation, industry linkages, public-
private partnerships, national and international links, data of training needs, and institutions and
placement programmes. In Punjab, a separate institution – the Punjab Vocational Training Council –
was set up for youth among the lower socio-economic strata of the population. The Prime Minister’s
Youth Skill Development Programme targets training for 25,000 unemployed youth (from lower
and middle economic strata households); additionally, there is the Benazir Bhutto Shaheed Youth
Development Programme in Sindh and the Punjab Skills Development Fund in southern Punjab
that is now slated to be expanded to the whole of Punjab Province.
Interviews with training providers point out increasing demand for quality certified and recognized
trade skills for better employment and income outcomes. Initiatives taken by TVET providers
include arrangements for certification by foreign institutions. The recent focus on competency-
based training is intended to prepare skilled persons and achieve greater employment outcomes
within the country and overseas. Recognizing the importance of certified skills in the context of
changing patterns of demand, TVET providers in the public and private sectors are increasingly
linking with foreign assessors, such City & Guilds in the United Kingdom. The TVET Authority
in Punjab and Sindh are considering seeking a license to act as overseas employment promoters
(agents).
Some foreign employers or recruiters have initiated their own vocational training programme
in Pakistan. One such initiative is the establishment of a vocational training institute within the
National Training Bureau by a Saudi Arabian employer.
How can Pakistan ensure greater protection of migrating workers and improve their skill and
education levels to meet the labour market needs of destination countries? This is an important
question for education and TVET administrators, regulators and employment promoters as well as
of those dealing with migration.
xiv From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
A mechanism that ensures better coordination among TVET providers and actors involved in the
migration process, such as the BEOE and its community welfare attachés and overseas employment
promoters through their representative organizations, is critical. The report suggests the following
measures and elaborates on how this can be achieved:
Abbreviations
T
he creation of an environment that fosters the generation of full and productive employment
under decent work1 conditions is critical for pulling working women and men out of
poverty and for a country’s socio-economic development. Many developing countries are
confronted with serious labour market-absorption issues. Unable to fully employ all their workers
in the domestic labour market, policy-makers in many governments of “labour surplus” countries
increasingly see overseas migration as a way to tackle unemployment and poverty. The huge
number of international migrants – 232 million, or 3 per cent of the world’s population – points to
the importance of international migration.2 Of them and according to most recent estimates,3 there
were 150.3 million migrants in the world who were economically active in 2013. More than half –
83.7 million – were men, and 66.6 million were women. Asia-Pacific hosts 17.2 per cent of migrant
workers (25.8 million persons). The Arab States have the largest proportion of all migrant workers
(at 35.6 per cent) and hosts 11.7 per cent of migrant workers worldwide, most of them from South-
East Asia and South Asia.
It is also true that host countries receive significant benefits: Their labour shortages – of low-skilled,
semi-skilled, skilled, highly skilled and professional workers – are mitigated and economic activities
are strengthened. Indeed, all migrant workers, irrespective of their status, contribute to growth and
prosperity of the countries of origin and destination.
Migration of skilled, semi-skilled and low-skilled workers has been a source constantly easing
the labour market situation in Pakistan, although migrant workers are overwhelmingly men. More
than 8.7 million people migrated from Pakistan between 1971 and 2015,4 with a surge in numbers
in recent years; around 4.5 million people5 went abroad for work between 2008 and 2015 (figure
1). These flows, averaging 560,890 a year, no doubt have been instrumental also in addressing
employment and poverty issues in the country. Remittances sent by Pakistani migrant workers have
been steadily rising with the increasing flow of migrants. In fiscal year 2014–15 Pakistan received
US$18,454 million from its citizens living and working abroad. Remittances during July 2015 to
January 2016 were $11,198 million.6
1
The ILO defines “decent work” as comprising freedom, equity, security and rights. There are four pillars of decent work: (i) employment creation and
enterprise development, (ii) social protection, (iii) standards and rights at work, and (iv) governance and social dialogue.
2
See www.unesco.org/new/en/social-and-human-sciences/themes/international-migration/ [accessed 5 July 2016].
3
ILO Global estimates on migrant workers (2015); available on http://www.ilo.org/global/topics/labour-migration/publications/WCMS_436343/lang--en/
index.htm
4
Unpublished data files in the Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD) that are based on the data furnished by
the Bureau of Emigration and Overseas Employment (BEOE).
5
Unpublished data files in the Ministry of Overseas Pakistanis and Human Resource Development.
6
State Bank of Pakistan.
2 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
456 893
430 414 403 528
362 904
287 033
183 191
142 135
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Note: This data excludes those going through the Overseas Economic Corporation, which is about 2 per cent of the total for the 1971 and
2015 periods.
Source: BEOE.
The contribution of Pakistani migrant workers and diaspora to the national economy is significant.
Along with the much-needed foreign exchange support, the remittances enable economic activities
to be initiated or at least supported through consumption by the remittance-receiving households.
The human capital acquired while working overseas is yet another dimension of the contribution.
Recognizing the contribution of migrant workers, the Government is committed to promoting safe
migration, protecting migrants and better facilitating remittances.
This study on Pakistan is a part of the multi-country analysis of labour market trends and migrant
workers between countries of origin and destination that was jointly commissioned by the
International Labour Organization (ILO) and the German Development Cooperation (GIZ). The
study set out to address the lack of adequate and reliable information on labour flows and short- and
medium-term employment opportunities by education and skill levels in destination countries. The
selected countries of origin in the study are Bangladesh, India, Nepal and Pakistan. The countries
of destination refer to Kuwait, Qatar, Saudi Arabia and the United Arab Emirates from the Gulf
Cooperation Council (GCC) region as well as India and Malaysia.
1. Country of destination studies: an assessment of destination countries, which examined the socio-
economic, policy and skills needs environment for labour migrants in selected GCC countries,
India and Malaysia.
2. Consolidation analysis: based on the assessment of the situation in the countries of destination
an analysis of the general situation, including suggestions and recommendations what could be
done to improve the economic benefits of labour migration.
3. Country of origin studies: based on consultation processes and extended analysis, an assessment
of existing support policies and systems and existing skills training institutions and their
programmes related to the migration of labour.
Introduction 3
The Pakistan study looked at the labour market supply and demand domestically and in the main
destination countries for migrant workers, the relationship of supply and demand to skills and the
impact of the recruitment process on all three facets. The study was based on information collected
through a desk review and interviews with migrants, government officials involved in the migration
process, overseas employment promoters, training providers and representatives of employers’ and
workers’ organizations.
Section 2 of the report presents the employment situation in Pakistan. Section 3 discusses the stock
of overseas migrants and migration flows as well as remittances. Section 4 looks at issues related
to managing migration – policies, institutions, facilitation and protection. The actors involved in
the migration process and instances of malpractices are discussed in section 5. Migration and skill
development are taken up in section 6, with section 7 focusing on likely demand for Pakistani
migrant workers. The report concludes in section 8 with an analysis of the way forward.
NOTES ON TERMINOLOGY
1. Although the Government of Pakistan uses the term “emigration” in the name
of its departments managing overseas migration as well as the ordinances and laws
(and the ensuing text) covering the movement of workers abroad for employment,
this report uses the terms “migration” and “migrant” due to the temporary nature
of the migration and that the workers intend to ultimately return to Pakistan. Thus,
“emigration” is recognized as the movement out of a resident country with the intent
to settle elsewhere.
2. In this report, the term “low-skilled” also includes workers who sometimes would
be classified as “unskilled”. The report uses the term “unskilled” when referring to
official data classified accordingly only.
4 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Employment
Situation In Pakistan
Employment
2 Situation In Pakistan
P
akistan’s population growth is fairly high, currently ranking as the sixth most populous
country in the world, with 1887 million people. Its population growth (and world ranking)
is expected to maintain through 2050.8 Although its labour force participation rate is low
overall, Pakistan ranks as the tenth-largest in the world.
Pakistan is confronted with a situation in which the number of annual jobseekers far exceeds the
employment opportunities. The official unemployment rate has hovered around 5–6 per cent for
years (table 1). This rate represents as many as 3.73 million people who are unemployed. However,
these numbers are not reflective of the actual labour market situation. As is common with labour
markets in many developing countries – characterized by a huge informal sector in urban areas and
the agriculture sector dominating rural employment, many unemployed workers and fresh entrants
into the labour market seek temporary employment in those sectors. This practice thus results in
a surge in the number of underemployed. Additionally, the pattern of employment reflects serious
issues of gender imbalances (see also Annex tables A1–A7).
Pakistan also has a large youth population (aged 15–29), at 27.4 per cent, with a large proportion of
young people (aged 15–29) entering the labour force every year, at 27.9 per cent. Thus, the share of
15- to 29-year-olds is increasing in the working-age population.
Pakistan also faces the problem of child labour (work undertaken by children younger than 14
years is considered as child labour and prohibited). The Labour Force Survey only asks about the
participation of children aged 10 years or older, so there is no information on child labour among 5-
to 9-year-old children. However, based on the only nationwide survey on child labour in Pakistan,
in 1996, the ILO estimated that among children aged 5–14 years, 3.3 million (8.3 per cent) of the
40 million children of that age were economically active.
7
Pakistan Economic Survey 2013–14.
8
World population data sheet 2015.
6 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The industry sector employs about one fifth of the country’s employed; it also absorbs 26.2 per
cent of the male employed workers and 13.2 per cent of the female workers (see Annex table A1).
Good wages and improved working conditions, including social security and labour protection,
are associated with employment in industry and manufacturing. To diversify skills development
opportunities, it would be useful to target training for women and girls in new and emerging
occupations, relevant to the labour market and that would lead to improved employability. Women’s
organizations, both for employers and workers, would be useful resources in determining the
training needs over a wider spectrum.
More than two-fifths of the employed are in agriculture work; most of them, at 74.9 per cent, are
female (see Annex table A2). The service sector absorbs 35 per cent of the employed workforce;
but at 40.7 per cent, the share of male workers is far greater than female workers, at 13.9 per cent
(see Annex table A3). The share of wage and salary workers among the employed is 39.8 per cent;
43.8 per cent of male workers receive a wage or salary while only 24.9 per cent of female workers
do (see Annex table A4). Own-account workers (self-employed) account for 34.9 per cent of the
employed workforce; here, too, the share of male workers is far greater than female workers, at 40.1
per cent, compared with 15.9 per cent (see Annex table A5).
The informal sector dominates employment in urban areas, absorbing 73.3 per cent of the employed
workforce. The gender gap in informal employment is minimal (see Annex table A6). Around 36
per cent of the total employed population works more than 50 hours a week, although only 7 per
cent of all employed female workers work that excessively (see Annex table A7).
The data indicate a serious labour market situation in Pakistan, one that necessitates concerted
effort in creating decent conditions for employment within the country as well as helping workers
find employment in countries of destination. Provision of quality and market-relevant TVET is
critical for enhancing employability.
Executive Summary 7
8 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Overview of labour
migrationOverview
from of labour
Pakistan:
migration from Pakistan:
Stock, flows
3 Stock,and
flows remittances
and remittances
Pakistan can be characterized as a pro-migration country; more than 8 million Pakistanis have
gone abroad for work since 1971. About 52 per cent of migrant workers who left the country
between 1981 and 2015 came from Punjab Province, which is also the biggest province population
wise, followed by Khyber Pakhtunkhwa (at 25.6 per cent), Sindh (at 9.5 per cent), Azad Kashmir
(at 7 per cent) and Tribal Areas (at 5 per cent). Major push factors have been lack of jobs and
work opportunities in the domestic labour market and the security situation in the country. These
conditions are also reflected in the draft national policy for overseas Pakistanis, which emphasizes
greater skills training opportunities to develop a more skilled workforce that is compatible with
demands in the international labour market.
Pakistani migrant workers are going to more than 50 countries of destination currently,9 with GCC
countries being the most common choice. During 2008–16, some 97 per cent of Pakistani migrant
workers headed to a GCC country. In recent years, Malaysia has emerged as a destination country
of significance, with 20,577 workers there in 2014 and 20,216 workers there in 2015. The top-five
destination countries since 2008, at least, are Saudi Arabia, United Arab Emirates, Oman, Bahrain
and Qatar (table 2).
Country 2008 2009 2010 2011 2012 2013 2014 2015 Total
Saudi Arabia 138 283 201 816 189 888 222 247 358 560 270 502 312 489 522 750 2 216 535
United Arab
Emirates 221 765 140 889 113 312 156 353 182 630 273 234 350 522 326 986 1 765 691
Oman 37 441 34 089 37 878 53 525 69 407 47 794 39 793 47 788 367 715
Bahrain 5 932 7 087 5 877 10 641 9 600 9 226 9 029 67 922
Qatar 10 171 4 061 3 039 5 121 7 320 8 119 10 042 12 741 60 614
Malaysia 1 756 2 435 3 287 2 092 1 309 2 031 20 577 20 216 53 703
Source: Bureau of Emigration and Overseas Employment.
Saudi Arabia and the United Arab EMirates receive the largest number of migrant workers from
Pakistan, in part due to historical friendly relations and ability of Pakistanis to pick up an elementary
understanding of Arabic language. Such an overwhelmingly large reliance on these countries is
a cause of concern for Pakistan, which relies substantially on migration. Although providing a
9
See www.beoe.gov.pk/migrationstatistics/1971-2015%20%28upto%20Feb%29/COUNTRY-1971-2015.pdf [accessed 5 July 2016].
10 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
temporary respite to policy-makers, particularly those dealing with labour market issues, and to
families in terms of employment and income support, this overemphasis on two countries leaves the
migration process vulnerable should there be any unanticipated changes in the demand of Pakistani
workers from these countries due to, for example changes in the economic status, such as the recent
drop in oil prices, or diplomatic relations.
In terms of skill composition (figure 2), unskilled workers constituted 39 per cent of the total
migrant workers leaving Pakistan in 2015; while low-skilled and skilled workers equalled 16 per
cent and 42 per cent respectively. The highly qualified and highly skilled equalled only three per
cent of the total number of migrant workers. The skill composition of Pakistani workers going
abroad has hardly changed over the past 45 years. The unskilled workers leaving country ranged
between 40 per cent during 2011–15 and 49.3 per cent over the 1990s. The proportion of skilled
workers leaving the country declined, from more than 44 per cent during 2001–10 to around 40 per
cent during 2011–15.
This trend nevertheless needs to be seen in the backdrop of a surge in outflow in recent years. In
terms of numbers reflected in table 4, there are skills and occupations that are in demand in the GCC
countries and the demand is expected to increase in the foreseeable future.
Figure 2. Skill composition of workers who went overseas for employment, 2015*
16% 39%
Semi-skilled Unskilled
42%
Skilled
2%
Highly Qualified
1%
Note:*=Data up to October 2015 only.
Highly Skilled
Source: BEOE, 2015a.
Overseas migration: Stock, flows and remittances 11
The BEOE breaks down migrants going for work into five categories of skill, as shown in table 3,
which needs to be modified according to the newly developed National Vocational and Qualification
Framework.
Source: Based on the data on migration stock and flows as published by the BEOE.
Table 4 shows the top-15 categories of occupations, with low-skilled labourers on top, followed
by drivers and then construction occupations. The trend is consistent with the stereotypes and
preconceived ideas about skills and strengths of Pakistanis in certain occupations, according to
interviewed overseas employment promoters who said that employers in destination countries think
that Pakistanis are good at driving and as labourers due to their physical appearance.
Interviewed stakeholders pointed out that overseas employment promoters avoid the demand for
skilled and highly skilled workers on the presumption that placement of such categories of workers
is difficult due to standards and certification issues.
Table 4. Top 15 categories of occupations for Pakistani migrant workers, 1971–July 2015
1. Labourer 2 093 318 190 854 242 202 222 422 301 425 199 986 3 250 207
2. Driver 487 605 48 188 86 568 72 610 85 794 77 038 857 803
3. Mason 411 233 35 328 54 493 44 170 50 677 36 170 632 071
4. Carpenter 290 403 24 568 33 822 30 849 31 093 20 820 431 555
5. Technician 216 269 18 100 28 066 32 070 34 806 23 359 352 670
6. Electrician 187 699 17 326 24 166 26 767 25 844 19 504 301 306
7. Steel Fixer 181 374 17 266 24 978 24 000 26 422 15 854 289 854
8. Agicul 192 437 11 128 17 114 17 102 22 325 18 069 278 175
9. Mechanic 146 172 13 139 12 099 14 829 15 467 12 869 214 575
10. Tailor 185 059 4 567 5 919 5 342 5 635 4 366 210 888
11. Painter 104 257 7 623 13 252 13 999 16 890 12 046 168 067
12. Plumber 89 349 9 023 14 109 17 279 16 827 12 090 158 677
13. Operator 80 919 9 813 12 883 12 829 14 806 11 288 142 538
14. Salesman 74 927 7 461 7 496 12 824 16 017 11 745 130 470
15. Welder 64 421 6 361 9 891 13 135 13 604 10 643 118 055
Source: Bureau of Emigration and Overseas Employment.
12 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The 2015 ILO-GIZ report10 noted that employers in the popular destination countries have certain
perceptions of Pakistani workers in a few occupations; for example, drivers are regarded as tough
or construction workers will accept low wages. The report also concluded that of the estimated
migrant labour demand from GCC countries, an average of 85 per cent is for low-skilled labour,
predominantly in the construction and service sectors. A number of major infrastructure projects,
planned or ongoing, in the GCC countries dominate the labour demand, mostly for low-skilled
labour in the medium term.
Many migrant workers do not work in occupations they were in before migrating. A study by the
Pakistan Institute of Development Economics in 2014 in Khyber Pakhtunkhwa Province revealed a
variation of skills among migrant workers before and after their migration journey, mainly among
low-skilled and semi-skilled workers (table 5).
According to the BEOE, the migration of Pakistani women is negligible, with only some 6,444
female workers going abroad for employment from 2008 to 2013, or 0.1 per cent of all migrant
workers going overseas. Of them, 3,860 women went to the United Arab Emirates and 1,153 went
to Saudi Arabia. The other prominent destination countries for women have been Oman, United
States, United Kingdom and Qatar (table 6).
10
ILO and GIZ, 2015.
Overseas migration: Stock, flows and remittances 13
The migration of Pakistani women is limited to a few occupations, primarily in the fields of health
service, the finance sector, cosmetology and fashion designing, either due to social and cultural
issues or to government permission (domestic work). Of the 6,444 women who migrated for
work from 2008 to 2013, 1,437 worked as cleaners or housemaids (22.3 per cent), 753 worked
as accountants (11.7 per cent), 662 as saleswomen (10.3 per cent) and the remainder worked as
doctors, beauticians or nurses (table 7).
As per the Emigration Rules, the minimum age for women to seek a job abroad as a housemaid, aya11
or governess is 35 years. The Government will relax the minimum age limit by five years in certain
cases. The official explanation for the age ban is to protect women from abuse and exploitation
associated with domestic work. Women continue to migrate for this type of work, though they are
limited in number (government officials mentioned during the research for this report that these
housemaids usually accompany employers they had worked with in Pakistan who move to another
country).
11
Aya is an Urdu word commonly used as alternate word for caregiver at home, hospitals and girl hostels.
14 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The OEC facilitates female migration. According to OEC data for 2004–15, some 2,659 women
went abroad for employment through their service, with the majority (2,256) going to Saudi Arabia.
Overseas employment promoters stated in various meetings with ILO that they do not take requests
for domestic female maids from GCC countries due to the vulnerabilities and abuses associated
with this profession.
The flow of workers’ remittances, an important source of income for many households as well as
the development needs of the economy, has been increasing every year. It quadrupled in value after
2000, reaching around $7 billion in 2008. The trend has been maintained, with the total remittances
tripling in the subsequent years – from FY 2005–06 to FY 2014–15, when it reached $18,454
million, equivalent to 6.5 per cent of the GDP (table 8).
The largest volume of remittances originates in Saudi Arabia and the United Arab Emirates,
followed by Bahrain, Oman, Qatar and Kuwait (table 9).
Based on a rigorous analysis of a variety of variables, Kock and Sun (2011) attributed the growth
in the inflow of workers’ remittances to Pakistan largely to an increase in worker migration. But
they also noted that higher skill levels of migrating workers had helped to boost remittances and
that agriculture output and the relative yield on investments in the host and home countries were
important determinants. Another important factor in the increase of remittances through formal
channels is the Pakistan Remittance Initiative of the State Bank of Pakistan, the Ministry of Finance
and the Ministry of Overseas Pakistanis (now called the Ministry of Overseas Pakistanis and Human
Resource Development) that was launched in 2009 to facilitate the flow of remittances through a
service that is faster, cheaper, convenient and efficient and to create investment opportunities in
Pakistan for overseas Pakistanis (box 1).
R
ealizing opportunities emerging overseas in the wake of the “oil revolution” in the Middle
East and the consequent construction boom of the 1970s, the Government of Pakistan
liberalized the acquisition of passports by nationals and created institutions to manage
and govern labour migration from the country. Today, Pakistan is a country that is pro-migration
and has a number of institutions, laws, policies and programmes to promote migration and to
protect Pakistani nationals when working abroad. This section outlines that legal and institutional
framework.
The Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD) was created
in 2013 from a merger of two ministries (Ministry of Overseas Pakistanis and Ministry of Human
Resource Development) to manage the migration of Pakistani labour abroad, elevate the living
conditions of the working class and secure decent working conditions for them. Its activities
encompass the management of labour relations, social security, socio-economic improvement for
the working class and the promotion of the Pakistani workforce (box 2). MOPHRD works in close
coordination with provincial governments, workers’ and employers’ organizations and international
agencies. Within the MOPHRD, three entities have specific functions for managing migration: i)
the Bureau of Emigration and Overseas Employment; ii) the Overseas Employment Corporation;
and iii) the Overseas Pakistanis Foundation.
The number of staff within the MOPHRD in relation to its functions is small, especially for positions
with technical capacities and thus the available human resources are inadequate for the monitoring
requirements in destination countries or even providing policy inputs. The MOPHRD recently
established a Migration Resource Centre with ILO support and has set up an online complaint
management system to receive grievances and complaints from potential migrant workers, migrant
workers, overseas Pakistanis and their families regarding recruitment, foreign employment or any
other related welfare issue.12
The Ministry is also responsible for the protection and welfare of migrant workers in the countries of
destination, which is tasked to the community welfare attachés. They are posted in major countries
of destination, including Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates. In certain
countries where there is a large population of Pakistani workers, such as Saudi Arabia and the
United Arab Emirates, there is more than one community welfare attaché office. The attachés are
to help resolve disputes between employers and Pakistani workers. If needed, they bring in the
overseas employment promoter who placed each worker involved in a dispute.
The attachés also report to the BEOE on employers and sites visited to monitor working conditions
and complaints received from Pakistani workers and the number of cases resolved. They also
regularly visit Pakistani workers who have been imprisoned and arrange for their repatriation.
12
See http://complaint.ophrd.gov.pk/ [accessed 5 July 2016].
18 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
As per the Rules of Business, 1973, the MOPHRD has the following functions:
i. National policy, planning and coordination regarding human resource development and
employment promotion for intending overseas workers.
ii. Preparation of short- and long-term programmes for human resource development and employment
promotion abroad.
iii. Research into problems of overseas Pakistanis; promotion and coordination of measures best
suited to resolving issues and motivating Pakistanis abroad to strengthen their links with the
mother country.
iv. Policy for links between the training of workers with the latest requirements abroad.
v. Linking training available through the National Training Bureau, Pakistan Manpower Institute
and others with efforts to increase labour export through the Overseas Employment Corporation
and the Bureau of Emigration and Overseas Employment. This includes close coordination and
links with community welfare attachés abroad.
vii. Periodic assessment, review and analysis of human resources and employment requirements
overseas.
ix. Special Selection Board for posting community welfare attachés in Pakistan embassies and
missions.
x. Administration of:
a) Emigration Ordinance, 1979 (XVIII of 1979);
b) Control of Employment Ordinance, 1965 (XXXII of 1965);
c) Workers’ Welfare Fund Ordinance, 1971 (XXXVI of 1971);
d) Companies Profits (Workers participation Act, 1968 (XII of 1968); and
e) Employees’ Old-Age Benefits Act, 1976 (XIV of 1976) including supervision and
control of the Employees’ Old-Age Benefits Institution.
xiii. Administration of the Industrial Relations Act, 2012, keeping a watch on labour legislation from
the international perspective, coordination of labour legislation in Pakistan and industrial relations.
The BEOE was established in 1971 through a merger of three agencies: (i) the National Manpower
Council, (ii) the Protector of Emigrants and (iii) the Directorate of Seamen’s Welfare. The BEOE
started functioning under the Emigration Act of 1922 and its Rules (1959), which were subsequently
replaced by the Emigration Ordinance, 1979 and its Rules. The BEOE has five directorates:
Directorate of Administration, Directorate of Coordination, Directorate of Operations, Directorate
of Research and the Directorate of Information Technology.
The BEOE is a regulatory body that controls, regulates, facilitates and monitors the foreign
migration process (by supervising implementation of the Emigration Ordinance and its Rules). It
is responsible for issuing licenses to private overseas employment promoters as well as overseeing
migrants who arrange their own employment.13
Another important function is to report regularly on the labour market situation in their respective
country as well as development plans, programmes and projects with potential for employment of
Pakistani workers (table 13).14
Another task of the BEOE is to collect and tabulate data on all Pakistanis working abroad for
employment, which it has done since 1971. The BEOE is also responsible for overseeing the
delivery of pre-departure orientation to all migrant workers, who are required to appear in person
in a Protector of Emigrant Office.
In collaboration with the State Life Insurance Corporation of Pakistan, the BEOE provides insurance
coverage of workers going abroad for employment. The insurance provides for life and disability
coverage up to PKR1 million, on the payment of a mandatory one-time premium of PKR2,000
($19). The insurance coverage is for two years and compulsory.
The Overseas Pakistanis Foundation was established under the Emigration Ordinance with
a mandate to look after the social welfare of overseas Pakistanis working or settled abroad and
their families in Pakistan. The Foundation provides a number of services, most importantly the
management of the Overseas Pakistanis Pension Fund. It invests in education institutions, housing
schemes and vocational training centres that provide members and their dependants services; in
time of distress it supports overseas Pakistanis and their families, including rescue operations, legal
support to grievances and repatriating the remains of Pakistanis who die abroad.15
A three-year membership (compulsory) fee is PKR2,000. All activities of the Overseas Pakistanis
Foundation, except the education and housing schemes, are funded solely by the membership fee
from migrant workers.
13
individuals that find foreign employment through their own efforts or through relatives and friends working abroad – as their mode of migration
14
Presentation by the Overseas Pakistanis Foundation during its conference, co-hosted with the ILO, on “Skills in Demand in GCC Countries: Challenges
and Opportunities for Pakistan”, 26 June 2014 in Islamabad.
15
http://www.opf.org.pk/
20 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The OEC was established in 1976 and is the only public employment promotion agency. Its head
office is located in Islamabad with regional offices in Karachi, Lahore, Peshawar and Quetta. The
OEC is mandated to promote employment of professionals and workers of all skill level in foreign
countries.The OEC only recruits through government-to-government agreements, such as the Korea
Employment Permit System; it recruits doctors and teachers to Saudi Arabia and doctors and nurses
to Oman and Libya, among other countries. From 1971 to 2015, about 2 per cent of all migrant
workers used the OEC services.
The corporation also has an online “resume bank” that currently hosts a curriculum vitae for more
than 192,000 professionals and highly skilled candidates interested in working overseas. Since its
inception, it has provided more than 128,000 workers to foreign employers in the public and private
sector in 53 countries. 16 Such numbers compare poorly with that of private overseas employment
promoters.
The Emigration Ordinance was issued in March 1979 after repeal of the Emigration Act, 1922. It
consists of seven chapters that explain the procedure of migration control and governance, the role
of various departments and penalties for violations.
Emigration Ordinance defines all related terms, designations and processes of migration. The
Ordinance explains unlawful migration and imposes a maximum penalty of five years’ imprisonment
or fine or both in case of any attempt, assistance or agreement made to help any person through
a process that is not in conformity with the law. If any recruitment agency facilitates, recruits or
engages in any way a departing migrant without appearing in the Protector of Emigrant Office is
also considered unlawful migration and subject to punishment. Anyone who fraudulently induces,
forces or coerces someone out of the country or provides or prepares forgery documents or possesses
tools used for forging documents is subject to up to 14 years’ imprisonment as penalty.
The Ordinance grants powers to the Government to make rules for carrying out the law, including
the power and duties of officials and matters related to licensing, recruitment industry regulation
and the control of illegal migration. The rules also cover setting up pre-departure information
and training centres to guide and advise intending migrants and their dependants, the fees that
recruitment agencies can charge and their code of conduct.
The Ordinance also empowers the Government to not only control and supervise the overseas
employment promoters but to prohibit unlicensed persons from assisting or recruiting persons to
migrate. The Ordinance requires all information is prepared in Urdu regarding the rules, regulations
and customs of the country of destination as well necessary terms and conditions of employment
(table 10).
16
See www.oec.gov.pk/index.php/about-us/overview [accessed 5 July 2016].
Managing migration 21
What the law does not talk about is skill development for overseas employment nor does it establish
any links with skill development institutions.
Table 10. Chapters and thematic areas of the Emigration Ordinance, 1979
The Emigration Rules cover the exercising of powers granted under section 16 of the Emigration
Ordinance and were last updated in 2012. The Emigration Rules provide detailed information on the
legal migration process and the roles, responsibilities and powers as well as the functions of various
officers and offices, such as the Director General, the Protector of Emigrants, the community welfare
attachés and the advisory committee. It also provides detailed information on the regulation of
overseas employment and overseas employment promoters, the procedure for licencing recruitment
agencies and their renewal, a complaint-handling mechanism and the establishment of a Workers’
Welfare Fund (and its use and objectives).
The Rules make it compulsory for all persons going abroad for work to register with the insurance
scheme and to check in with the Protector of Emigrant Office. The Rules allow recruitment agencies
to form an association with approval of the Government, with every licensed recruitment agency
required to join the association and follow the code of conduct elaborated in the Rules and in the
rules of the association. The Rules grant powers to the Overseas Pakistanis Foundation to manage
and invest the Welfare Fund.
The Rules entitle an overseas employment promoter to receive from the migrant, after selection
for employment abroad, actual expenses incurred on air ticketing, medical, work permit, levy, visa
and documentation of the migrant but asks for issuance of proper receipt. The Rules allow each
promoter to operate two branches but forbid appointment of a sub-promoter.
22 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The Rules also explain in detail the process of complaint receiving, handling procedure and
compensation, in Pakistan and in destination countries. Migrant workers have only six months
from the time they begin working in a host country to register a complaint against their recruitment
agency.
With “skills for employability, skills for all” as its vision, the strategy provides policy direction,
support and an enabling environment to the public and private sectors to implement training for
skills development to enhance social and economic profile. The National Skills Strategy makes
a paradigm shift towards skills development in the country by: (i) shifting from time-bound,
curriculum-based training to flexible, competency-based training and (ii) from a supply-led training
to demand-driven skills development. The strategy promotes the role of industry in both the design
and delivery of TVET.
The strategy stresses relevant skills with improved accessibility, employability and assured quality,
to be achieved through a reform process.
The strategy acknowledges that the participation rate of women in the labour force is very low
compared to other countries in the region and suggests that social and cultural attitudes towards the
value of educating women and their participation in economic development as the main reasons for
the low participant rate. The strategy aims to design policies that encourages the social acceptance
of women to enrol in traditional and non-traditional training courses.
The strategy recognizes that while remittances already form an important part of Pakistan’s foreign
exchange earnings, it could increase further if the skills levels of migrants would be increased. The
strategy emphasises the need to assess the labour market situation in the international job market
and how it will affect Pakistani workers ability to get job, as well as the need to ensure that local
training standards meets international standards.
The National Vocational and Technical Training Commission is planning to develop an information
management system to collect data on international skill demand which will be available to all
stakeholders in the TVET sector to formulate policies and programmes. The National Vocational
and Technical Training Commission also aim to establish institutional partnerships for international
accreditation, joint certification and mutual recognition agreements.
A TVET reform programme is in a second phase. Funded by the European Union and the Government
of Germany, it is being implemented by the NAVTTC with support from GIZ. Beneficiaries
are the provincial TVET Authorities and other stakeholders. In addition, the World Bank, the
British Department for International Development (DFID) and the ILO have developed support
programmes in the provinces. Of them, DFID’s €50 million programme is largely for the Punjab
Skills Development Fund, with a matching grant by the government of Punjab. In its first phase, the
programme focused on the underdeveloped regions or districts of the province; the second phase
emphasized province-wide coverage.
Managing migration 23
The National Vocational and Technical Training Commission has established career guidance and
placement centre including a job seekers database that links job seekers with employers and the
overseas employment promoters.
To expand its extraterritorial jurisdiction and accord more protection to its citizens abroad, the
Government of Pakistan has signed bilateral agreements or memoranda of understanding (MOU)
with a number of destination countries. The Government treats these agreements confidential, thus
it is not possible to examine their content for issues related to skills. Among the agreements:
n MOU with the United Arab Emirates (start date: 22 Dec. 2006, valid for four years). A new MOU
is being drafted.
n MOU with Kuwait (start date: 6 Nov. 1995, to continue till termination). An addendum to this
MOU has been made.
n MOU with Bahrain (start date: 9 Mar. 2014).
n MOU with Qatar (start date: 1987, to continue till it is terminated).
n MOU with the Republic of Korea (start date: 26 June 2006, to renew every two years).
The Government is drafting MOUs with the governments of Saudi Arabia and Italy.
A person selected for foreign employment must register with the BEOE through any Protector
of Emigrants Office. This registration entitles a prospective migrant to (i) Overseas Pakistanis
Foundation facilities, (ii) insurance coverage for a period of two years and (iii) a national identity
card for overseas Pakistanis (NICOP).
Table 11 lists all payments that are required of outgoing migrant workers. In total, a migrant using an
overseas employment promoter should expect to pay between PKR21,125 ($201) and PKR31,524
($301) for a range of costs, as shown in table 3. Migrants who have secured employment directly
typically pay more, between PKR45,575 ($435) and PKR48,524 ($463). The official charges cited
in table 11 are seldom applied in practice, and workers end up paying substantially more to secure
employment abroad through an overseas employment promoter.
24 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Table 11. Fees and service charges paid by prospective overseas migrants (PKR)
Service charges PKR1 500 ($14.32) PKR25 000 ($239) a From professionals PKR65
(if employment for up to 120 000 ($621)b
days)
PKR6 000 ($57.30) From labourers
(if monthly salary up to $1 PKR 40 000
200 and contract for more ($382)
than 120 days)
PKR10 000 ($95.50) This includes air ticket
(if salary above $1 200 and
contract for more than 120
days)
Welfare Fund of Overseas PKR2 000 ($19) PKR2 000 ($19) PKR2 000 ($19)
Pakistanis Foundation
State Life Insurance PKR2 000 ($19) PKR2 000 ($19) PKR2 000 ($19)
Corporation fee
Foreign service agreement PKR500 ($4.8) PKR 2,500 ($ 23.8) PKR6 000 ($57)
and stamping fee PKR 1,450 ($13.8)
(in case of employment up
to 120 days)
National ID card for PKR2 625 ($25) PKR2 625 ($25) PKR2 625 ($25)
overseas Pakistanis to PKR3 674 ($35) to PKR3 674 ($35) to PKR3 674 ($35)
Notes:
a In most cases, individuals who proceed on overseas employment on a “direct” basis also engage an overseas employment promoter to
process their case, as informed by field visits. Overseas employment promoters in Rawalpindi charge a lump sum fee, PKR25,000.
b A slightly different fee structure applies for employment in the Republic of Korea and entails only a service charge.
c This refers to the registration fee for an applicant to keep their resume active on OEC’s website for a one-year period.
d According to Rule 15(a) of the Emigration Rules, an overseas employment promoter is entitled to receive actual expenses incurred on all
items pertaining to the processing of a worker’s case, including the visa fee. However, the visa fees vary substantially by category of work
or across companies within a destination country, so it is not possible to give an average figure here.
e Workers going to United Arab Emirates can obtain a medical examination from any medical centre – they are not require to use a GAMCA
centre.
Source: Ministry of Overseas Pakistanis and Human Resource Development, National Database and Registration Authority, Overseas
Pakistanis Foundation and OEC.
Several costs are occurs throughout the migration process, including those linked to obtaining labour
demand and having it certified by the community welfare attachés in the country of destination,
approval of the labour demand by the Protector of Emigrants (including attestation of the
employment visa), visa processing, advertisement, interviews, trade tests if required, payment to a
sub-promoter, health checks and certificate and the purchase of air tickets and any other formalities
related to travelling. As indicated in section 4.2.2, there is a provision for the reimbursement of
charges, including airfare, because foreign employers may refuse to cover it.
According to international standards, most aspects of the migration costs should be paid by the
employer; in many cases, these costs are transferred to the migrant workers. A 2016 study by the
ILO17 concludes that a low-skilled migrant worker from Pakistan working in the construction
or agriculture sectors pays on average PKR358,875 ($3,489) for a job in Saudi Arabia or the
United Arab Emirates.The average cost of migration to Saudi Arabia is considerably higher (at
PKR441,266, or $4,290) than to the United Arab Emirates (at PKR242,542, or $2,358). The report
concludes that the high migration costs experienced by migrant workers from Pakistan are a major
governance issue.
17
ILO 2016.
26 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Matching the
demand for migrant
workers 5 for migrant workers
Matching the demand
Public and private training providers in the country have used different terminology when referring
to skills for employment, the labour market and jobs. Establishment of placement centres by the
provincial Technical Education and Vocational Training (TVET) Authorities and Punjab Vocational
Training Council (PVTC) and management committees at each centre or institution with a private
sector representative in each are helping to unify training and even the language used. Development
of the skills labour market information system (SLIMS) by the TVET Authorities and the National
Vocational Technical Training Commission (NAVTTC) have created a better enabling environment
for vocational guidance, employment counselling and job placement.18
Some of these training providers are currently trialling competency-based training. The process
involves a skills baseline survey and a survey of employers’ needs, along with sector-specific
studies, such as food processing, meat, dairy sector, cutlery and surgical instruments, fans and auto
parts, such as what Punjab Skills Development Fund19 has conducted to understand the labour
market dynamics to better match skills (and to cater to the small and micro enterprises, including
productive self-employment).
Maintaining the overseas demand for Pakistani workers has become a stress point in the design
and delivery of training. In response, the Punjab Skills Development Fund commissioned a study
on skill demand in GCC countries and the Punjab TVET Authority conducted a skilled workers
demand assessment also in GCC countries. The assessment identified the following sector with
potential for Pakistani workers:
A delegation of Punjab TVET Authority officials, led by the Minister for Employment and Human
Resources visited Qatar in 2015 as part of a series of initiatives to liaise with employers and officials
in destination countries in the GCC region to understand their requirements for skilled workers
and views on the quality of Pakistani workers’ skills. The Sindh TVET Authority is setting up a
Migration Resource Centre to link with 17 employment exchanges in the province, with a focus on
overseas placement. The Punjab TVET Authority has already established a similar unit.
18
For instance, see the Punjab web portal at www.TVETa-slmis.gop.pk/ [accessed 5 July 2016].
19
See http://psdf.org.pk/media-center/publications/ [accessed 5 July 2016].
28 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Fulfilling the demand for migrant labour overseas involves essentially two processes: (i) the process
to obtain labour demand in destination countries and (ii) the recruitment process, culminating in the
departure of workers.
Figure 3 illustrates the first stage process and actors involved. The employers comprise those with
approval to hire foreign labourers and contractors and obtain new projects in destination countries,
including their subcontractors and those employing domestic workers.
Labour providers comprise recruitment agencies in the destination countries, overseas employment
promoters in Pakistan and even employees who seek employment on their own through a relative,
friend or online applications.20 They negotiate terms and conditions with employers. Outside the
public sector and multinational corporations that pay for services provided by overseas employment
promoters and cover the cost of workers’ travel expense, the majority of work visas obtained by
overseas employment promoters invariably involve payment to employers or a local recruiting
agency. This payment is then passed on in the form of fees to the migrating workers.
Overseas employment promoters or their agents regularly visit destination countries to connect with
potential employers and recruiting agencies to obtain labour demand. On occasion, the overseas
employment promoters learn of jobs through the community welfare attaché offices.
All GCC countries apply the kafala, or sponsorship, system, which also governs the recruitment
process. Although sponsors are typically employers, this system is also linked with excessive rent-
seeking, exploitation and human rights violations. Many workers are recruited though agencies
20
Use of information and communication technology and friends and relatives are also important sources – more than two-fifths of migrants from
Pakistan in recent years have obtained their employment visa on their own through a group. Their offer letters and foreign service agreements are attested
by Pakistani ministries or embassies.
Matching migrant workers demand and supply 29
with access to visas from kafeels, or sponsors, with surplus requirements or recruitment agencies
with a block allocation of visas and then look for a job upon arrival in the country. Or they work for
companies that are restricted by quotas for national employees.21
In the second stage of the process, the overseas employment promoters seek to fill the labour
demand (figure 4) obtained abroad. The first step is approval from the Protector of Emigrants for
that labour demand. The promoters then advertise the available jobs in newspapers or approach
prospective migrant workers on their own (through a waiting list) or through subagents (though
illegal). Overseas employment promoters pay subagents for their services. The promoters then
interview prospective migrant workers and organize skill testing if required. They then make all
arrangements for obtaining the employment visas and then seek attestation of the employment visas
and foreign service agreements from the Protector of Emigrants.
Labour demand
> >
approved by Protector of Labour demand Connecting prospective
Emigrants advertisement migrants with subagents
>
Protector of Emigrants Short listing of
attestation of employment
> Obtain employment visa
> applicants, interview,
visa and foreign service skill testing and selection
agreements
>
Protector of Emigrants
attestation of employment
visa and foreign service
agreements
21
Based on interviews with stakeholders and ILO and GIZ, 2015.
30 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The recruitment and selection of workers for employment abroad and in particular for GCC countries
is inconsistent. It varies widely by sector, occupation and firm size.
As the previous section described, the practice is dominated by the private sector, and mostly the
overseas employment promoters. The use of directly obtaining work (and the needed) has been
increasing in recent years. Overseas employment promoters interviewed for this study reported
that multi-skilling is increasingly required by employers in GCC countries. They also pointed out,
however, that training of two to three months is considered sufficient to meet the skill requirements
of a significant number of employers in destination countries. Prospective migrant workers are
engaging in non-formal modes of training, which tends to raise them to the level of semi-skilled
worker.
This is a reality that public sector skill providers are either unaware of or unconcerned about, if only
because they deal with workers a secondary school certificate or at least a middle-school level of
education. The majority of prospective migrants do not have such an education level and thus turn
to other skill providers.
The interviewed promoters also reported that the search for prospective employers abroad, especially
by South Asian-based promoters, is leading to negative competition, resulting in lower wages and
uneven standards. They stressed the need for a South Asian code of conduct.
Some recruitment promoters, however, also misrepresent the contract modalities to potential
migrants, which then differ once the workers arrive in the destination country. This misrepresentation
results in a mismatch of skills and jobs, though the workers then learn on job.
Executive Summary 31
32 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Migration and
skills development
Migration and
6 skills development
R
aising the skill competence of the workforce is high on the agenda of the political
leadership and policy-makers. This is reflected in the establishment of a TVET Authority
in all provinces and the National Vocational Technical Training Commission (NAVTTC) in
Islamabad. In Punjab, a separate institution, the Punjab Vocational Training Council (PVTC), was
set up to provide useful training for youth among the lower socioeconomic strata of the population.
The Prime Minister’s Youth Skill Development Programme targets training for 25,000 unemployed
youth (from lower- and middle-economic strata households).
Additionally, the Punjab Skills Development Fund in southern Punjab, which manages training
programmes through training providers. This programme is now slated to be expanded to the
whole province. In Sindh, the Benazir Bhutto Shaheed Youth Development Board was established
to provide skills development to youth through training providers in the province.22 The TVET
Authorities and the Punjab Skills Development Fund also focus on skills training for migration; the
Benazir Bhutto Shaheed Youth Development Board is developing similar modalities.
The importance of on-the-job-training was recognized more than 50 years ago through the
Apprenticeship Training Ordinance, 1962.23 In 1979, the Government launched the National
Vocational Training Project. The National Training Board was constituted under the National
Training Ordinance, 1980 (amended in 2002) to regulate and promote vocational training activities
in the country and to assess on a continuing basis existing and future training needs, both local and
foreign.
Realizing the lack of private sector participation, the Government established the Skills Development
Council in each provincial capital and in Islamabad in the 1990s, under a public-private partnership.
The Government also provided seed money that led to the Employers’ Federation of Pakistan to
nominate chairpersons and provided autonomy to design and deliver vocational training in line with
market requirements.
Frustrated with the slow pace of change by the National Training Board, the Government established
the National Vocational and Technical Education Commission through a Cabinet Division’s
notification24 in 2005 and later an Ordinance in 2009,25 with the mandate to regulate, coordinate
and make policy direction for TVET. The Commission covers laws and regulations, skill standards
and curricula, accreditation, instructors’ training, performance evaluation, industry linkages,
public-private partnerships, national and international links, data of training needs, and institutions
and placement programmes. The name changed to the National Vocational and Technical Training
22
Based on a meeting with the Board’s chairman, and the provincial coordinator in March 2016.
23
Applicable to all industrial establishments employing 50 or more workers, with five workers in an apprenticeable trade, it requires that at least one-fifth
of total persons employed in apprenticeable trades are recruited by the industrial establishment for training. At least three-fourths of an apprentice’s
working hours must be devoted to practical training and the rest to theoretical instruction.
24
Cabinet’s Division Notification No. 4-16/2005-Min-1, 30 Dec. 2005.
25
Ordinance No. 6 of 2009, Gazette of Pakistan Extra Ordinary, 27 Feb. 2009.
34 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Commission in 2011.26 Although its vision expanded to provide “skills for employability, skills for
all”, its functions largely remain the same.
Despite these efforts and the importance attached to TVET and tapping the employment potential
overseas, skill providers in the public sector had a larger focus until quite recently on skill
development (primarily for absorption in the local labour market) and promoting micro enterprises
and self-employment.27 In addition to the poor quality and relevance of TVET programmes,
facilities tend to cater to a small proportion of people who should be in the training.
Although many graduates and students are interested to go overseas for employment, until recently
there was no systematic mechanism to assist them. Graduates of some high-quality private and public
sector institutions nevertheless find employment overseas, mostly in GCC countries.28 Women
graduates are also interested in seeking employment overseas but are reluctant in the absence of
proper safeguards and the stories they hear of exploitation and harassment.
Vision 2030, launched in the late 2000s, called for the Government to reintroduce technical and
vocational curricula in the final two years of Pakistan’s secondary schools. According to the
Pakistan Economic Survey report, “Its economic potential and likely impact for employment and
SME improvement are enormous. It is also an incentive to complete schooling [the aim being to]
gradually increase vocational and technical education numbers to 25–30 per cent of all secondary
enrolment by 2015 and 50 per cent by 2030.”29
Despite this emphasis, TVET enrolment at the time of this study was a mere 311,000 students.
Considering the youth bulge and that there are 4.5 million students enrolled in secondary and higher
secondary school, the TVET training appears underwhelming (table 12).
Pre-primary 9.47
Primary 18.76
Middle 6.44
Secondary 3.02
Higher secondary 1.49
Degree college 0.77
University 1.97
TVET 0.31
Total enrolment: 42.23
26
The Gazette of Pakistan Extra Ordinary, 29 June 2011.
27
See Annex III for the meetings with stakeholders mentioned at numbers 3, 11, 12, 13, 16,17,18,19 and 27.
28
Some of such institutions are: (i) private sector – Ahmad Hassan Polytechnic, Lahore, AMAN Tech, Hunar Foundation, MITI and Hunar Foundation,
Karachi; and (ii) public sector – Construction Technology Training Institute in Islamabad.
29
Reproduced from Pakistan Economic Survey, 2012–13.
Migration and skills development 35
The current stage of TVET outreach is summarized by the implementation plan of the Framework
for Growth Strategy as:
In interviews for this study, overseas employment promoters reported that multi-skilling is emerging
as a requirement by an increasing number of employers in GCC countries. They also noted that
training of two to three months is considered sufficient to meet the skill requirements of a significant
number of employers in destination countries. Such training is taken up by prospective migrant
workers through non-formal modes of training, but mainly confined to semi-skilled trades. This is
a reality that public sector skill providers are largely unaware of or even seem to be “unconcerned”
about, according to interviewed promoters. The entry requirements of TVET institutions, for
example, are largely a secondary school certificate or at least a middle-school level of education.
The majority of prospective migrants tend not to have that level of education. Thus, private sector
skill providers meet the needs of those having less education or who are poorly educated.
In contrast, study interviews with training providers in February–March 2016 revealed increasing
stress on good-quality, certified and recognized trade skills for better employment and income
outcomes. The training providers also noted that picking up demand for low-skill jobs is widely
practised by overseas employment promoters to meet the semi-skill requirements of employers;
other skill mismatch, they noted, is due to poor preparedness by and/or awareness of overseas
employment promoters regarding initiatives by TVET providers, including certification by foreign
institutions (such as the City & Guilds in the United Kingdom). In recent years, there has been a
shift to competency-based training to better prepare skilled persons and achieve greater employment
outcomes within the country and overseas.
Employers’ preference for low-skilled workers in the countries of destination is also for the prior skill
work experience of workers. There is supply of such workers, readily available for overseas work,
in the skills development process under the traditional Ustad-Shagird system (master craftsman
and apprentice). The interviews with the overseas employment promoters indicated that workers
skilled through such a process are of high quality and are successful in the trade tests conducted by
prospective employers.
The ILO-GIZ study31 echoes this observation, finding that “prior migrant labour experience is
generally preferred to TVET certification because of a perception that firms in destination countries
are far more technically advanced than the training in TVET systems in countries of origin or
because of a lack of trust in the training and certification.
30
Planning Commission: Implementation Plan of Framework for Economic Growth, Result-Based Management, Government of Pakistan, Islamabad,
2012.
31
ILO and GIZ, 2015.
36 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Overseas employment promoters also indicated willingness to establish their own training
institutions but need the official support. English competency and understanding of elementary
Arabic is considered as an advantage in facilitating employment at higher levels of wages.32 This is
also a priority of training providers now, both in the public and private sectors.
Recognizing the importance of certified skills in the context of the changing demand for skilled
workers, public and private TVET providers are increasingly linking with foreign assessors, such
as City & Guilds in the United Kingdom. Currently, 130 TVET providers (75 public, including 50
centres of the Punjab TVET Authority, and nine centres of Sindh TVET Authority, and 55 private)
are providing skills based on City & Guilds standards. In addition, as noted previously, the Punjab
TVET Authority has established a placement unit for overseas employment.33 The Punjab and
Sindh TVET Authorities and the Punjab Skills Development Fund are looking to obtain a license
to act as an overseas employment promoter and possibly the authority to act as a Protector of
Emigrants Office.
Skills training for migration now appears high on the agenda in terms of plans and policies. This
priority is in contrast to the earlier focus of TVET Authorities. Skills for migration, for example, was
never reflected in the visions, missions and objectives of the TVET Authorities, with one exception.
The Sindh TVET Authority vision statement cites: “Develop qualitative workforce meeting local
and international labour market needs”.
Skills training providers need to be aware of the reality that the majority of migrating workers
who are semi-skilled or low-skilled acquired their skills from the private training institutions (with
courses of two to three months) that are easily accessible because their enrolment requires less than
a secondary school certificate and are even open to school drop-outs.
32
Meetings with stakeholders mentioned at serial numbers 1, 2, 6, 8, 22 and 27 of Annex III and additional meetings conducted during February – March
2016.
33
Figures based on a meeting with Skills International Pvt Ltd in March 2016 in Lahore.
Migration and skills development 37
These attributes are in contrast to the formal sector training institutions, where: (i) enrolment
requires a secondary school certificate; (ii) courses run between six and 24 months; (iii) training
is quite often not linked with even domestic labour market needs; and (iv) poor-quality training is
linked with poor infrastructure, including equipment and trainers.
Frustrated with the competency level of workers for skilled jobs, some foreign employers and
recruiters have initiated their own vocational training programmes in Pakistan. One such initiative
is the establishment of a vocational training institute within the premises of the National Training
Bureau by a Saudi Arabian employer (box 3).34
The Saudi Arabia-based Al-Hazza company entered into an agreement with the National Training
Bureau (the predecessor to NAVTTC, which was devolved by law in 2011) to establish a fully equipped
training workshop for skills development in construction-related work that largely require use of heavy
machinery. The trainees will be absorbed the Al-Hazza in its different projects. Eight workshops have
been completed, but an ongoing dispute between the local contractor and the company has delayed the
launch of the vocational training programmes.
The Libya-based MAKCO also entered into an agreement with the National Training Bureau to
establish a vocational training institute within its premises. Graduates are to be absorbed by the
company in its projects in different countries.
34
Based on the meeting with the Director General, National Training Bureau.
38 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Labour demand in GCC
countries for Pakistani
migrant Labour
workers and how
demand in GCC
countries for Pakistani migrant
to match it and how to match it
7 workers
T
he data indicate the flows for skilled workers from Pakistan decreasing and for semi-
skilled workers increasing in the past five years. This trend is expected to continue. The
trend corresponds with labour market dynamics and the perception of employers about the
suitability of Pakistani workers for semi-skilled jobs and as drivers. This also corresponds with the
ILO-GIZ study (2105) finding that “major infrastructure projects, planned or ongoing, in Kuwait,
Qatar, Saudi Arabia and the United Arab Emirates will dominate labour demand, mostly unskilled
and low-skilled, for the medium term”.
The short- to medium-term labour market trends point out demand for foreign workforce that
Pakistan can effectively tap:
1. United Arab Emirates: Abu Dhabi Island (infrastructure, hotels, etc.), the construction sector in
Dubai, especially for Expo 2020.
2. Kuwait: the country’s development plan 2010–2015 focusing on infrastructure
(and subsequent plans).
3. Saudi Arabia: manufacturing and trade sectors and construction.
4. Qatar: massive construction and related services as well as security in preparation for FIFA
World Cup in 2020.
The likely demand in the medium- to long-term horizon for Pakistani workers points to at least 45
trades or disciplines requiring semi-skilled, skilled, highly skilled and technical and professional
personnel (table 13).
40 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Source: Presentation, based on feedback from community welfare attachés, by Overseas Pakistanis Foundation representative during the
national conference on Skills in Demand in GCC Countries: Challenges and Opportunities for Pakistan, Islamabad, 26 June 2014.
A report of Punjab Skills Development Fund study on the likely skills in demand in the GCC
countries is expected in late 2016. Meanwhile, a skilled workers demand assessment by Punjab
TVET Authority identified seven sectors with employment potential for the Pakistani workers
in GCC countries: (i) hospitality (professional cooks, chefs, barista, travel and tour operators);
(ii) garments (fashion design, stitching machine operators); (iii) beautician; iv) information and
communication technology (web design, social media marketing); (v) micro entrepreneurs; (vi)
service (security guards); and (vii) health care. This list combined with the more than 45 skills,
trades, professions and occupations listed in table 13 provides sufficient evidence to revamp and
tailor TVET and professional education along with strengthening of support infrastructure for
expanding the skill level and thus numbers of Pakistani migrant workers in GCC countries.
There are also broad indicators provided by the ILO-GIZ study regarding the demand for trained
workers based on new priorities in the GCC countries. It reports “all GCC countries have made
efforts to diversify their economies away from the dependency on oil and gas revenues, particularly
in Saudi Arabia, where areas such as wholesale and retail trade and hospitality, construction,
agriculture, manufacturing, domestic service and human services (education and health care) can
be expected to offer (employment) opportunities. There are indications that some new subsectors,
such as automobile manufacturing and ‘green’ construction (including advanced water treatment
systems and solar panels) will grow, which will require workers with specific technical and
vocational skills.”
Executive Summary 41
The surge in labour flows to GCC countries in recent years by hundreds of thousands of Pakistani
workers and mainly comprising low-skilled and semi-skilled workers owes to the construction
projects undertaken in Saudi Arabia and the United Arab Emirates, which are major destinations
for Pakistani workers. Such a trend also corresponds with the widely held perceptions about the
type of work that Pakistani workers can perform, especially in construction-related work. While
tapping this potential in the short-term would be desirable, the medium- to long-term time horizon
necessitates focus on tailoring TVET and even the education system towards occupations falling
into the categories of semi-skilled, highly skilled and technical and professional.
Most GCC countries are currently facing an economic downturn due to the recent fall in crude
oil prices. Downsizing and lay-offs of workers in the oil and gas sectors have been reported,
as well as in other sectors, particularly construction and other infrastructure projects. While
it is not yet clear how this will impact future demand of workers, there are clear signs that
the demand particularly from Saudi Arabia has been reduced dramatically in the first half of
2016.
42 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Recommendations:
Recommendations:
The way forward
8 The way forward
How can Pakistan remain an important country of origin in the medium- to long-term horizon (with
higher-skilled workers for labour market needs abroad) but with a simultaneous focus on ensuring
greater protection of migrant workers? This is a key question for policy-makers, educators, TVET
managers and regulators as well as of those dealing with migration flows. A mechanism that ensures
better coordination among TVET providers and the actors involved in migration process – the
BEOE, including its community welfare attachés – and overseas employment promoters through
their representative organizations is critical.
There is need to prioritize high-quality certified and recognized skills demand by providing better
skill standards, rapid adoption of competency-based training, assessment of the skills acquired
through foreign-based assessors and mutual recognition of certificates. Recent initiatives of TVET
providers, including arrangements for certification by City & Guilds, are important and should be
expanded.
Foreign employers have established their own training facilities in Pakistan, albeit slowly, to train
prospective Pakistani workers to meet their skill standards. Employers in Saudi Arabia and other
GCC countries should be approached for similar investment.
The BEOE and its regional offices as well as overseas employment promoters are involved in the
design and delivery of short-term public sector TVET programmes, thus ensuring the flow of and
availability of information to all stakeholders and tailoring a specific proportion of training places
to the demand in foreign market, with GCC countries in particular.
Provincial TVET Authorities need to take a proactive stance to improve skill development. This
may require, as part of TVET institutions’ programmes, conducting short-term skills development
programmes on a regular basis. Public sector training providers that fund training should also focus
on skills for migration. Arrangements are needed for sharing the costs with the private sector,
primarily the overseas employment promoters.
44 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
The BEOE categorizes workers going abroad into five categories of skill: low-skilled, semi-skilled,
skilled, highly skilled and highly qualified. This categorization needs to be revised to correspond
with the National Vocational and Qualification Framework and standards adopted by the ILO.
Based on feedback received from overseas employment promoters and community welfare attachés,
prospective migrant workers (including drivers and skilled and semi-skilled workers) need a grasp
of elementary Arabic and English competency to increase their competitive edge in GCC countries.
Female migration
More than two-fifths of migrants in Asia are females. The Pakistani share, even in traditional
countries of destination, is extremely negligible. This is in contrast with the current labour market
realities in countries of destination. Sectors and occupations with potential for demand in the short
to long terms found in this study indicates significant employment potential of females in the GCC
countries. This should be tapped.
Encouraging female migration can be in the form of access to diversified skills development
opportunities in line with the emerging demand highlighted in this report. Public sector training
providers can take a leading role in creating greater access in their training programmes for
females. The skills development programmes should focus on helping women gain skills in demand
overseas. The Protector of Emigrant Offices should encourage overseas employment promoters to
seek demand for women, create greater awareness of the government policy that encourages the
participation of women in foreign employment, except the stipulated minimum age for domestic
worker jobs. Within the country, greater employment of women in the services and industry, in
sectors with relatively good salaries and wages and with employment security and social protection
would women gain certified and recognized skills.
The importance of readily available and reliable information cannot be overstressed for a proper
understanding of changes taking place in the labour market. Such information is necessary to see
the labour market trends. When analysed the information is useful for policy and planning as well
designing programmes and outreach campaigns to targeted populations. Vocational guidance,
employment counselling and job placement are also dependent upon labour market information.
Various official documents, including also the National Employment Policy (2008), the National
Emigration Policy (2009), and the National Skills Strategy (2009) have stressed the development
of a comprehensive and well-coordinated labour market information system, which has yet to
materialize. Its development should be a priority and should also integrate various dimensions –
labour outflows, occupational demand in countries of destination and return migration.
Public and private training providers use differing terminology for skills, the labour market and
jobs. Establishment of placement centres by the TVET Authorities and provincial vocational and
technical centres are considered important in reaching standards in terminology. Development of
a skills labour market information system by the provincial training authorities and the National
Recommendations: The way forward 45
Vocational Technical Training Commission have been useful for vocational guidance, employment
counselling and job placement. There are also simultaneous efforts in developing an information
system by the provincial labour and human resource departments. Greater coordination and
cooperation is required; one mechanism should be developed.
Migration facilitation
Easy and quick procedures are necessary to facilitate migration. This is applicable to the employment
visa processing as well as services for prospective migrant workers. Realizing this importance, the
National Emigration Policy stresses the need for a dedicated place or office that provides services
to prospective migrants, such as: (i) job information, (ii) obtaining a passport and identity card,
(iii) medical tests, (iv) purchase of air ticket, (v) briefing or orientation on the destination country,
(vi) language training, (vii) verification of certificates and other documents, (viii) skills training
and trade testing and (ix) registering as a migrant worker. The policy suggests a “one-window
operation” by establishing an overseas Pakistanis complex that includes a hostel facility in five
major cities and provides one-stop service (NEP, 2009). This proposal should be acted upon.
Relevant authorities should address the practice by overseas employment promoters of avoiding
demand for skilled and highly skilled workers on the presumption that placement of such categories
of workers is difficult due to standards and certification issues. Response should include better
coordination of the major stakeholders.
Protecting the rights of migrants needs greater focus. The community welfare attachés should focus
more on ensuring protection of workers’ rights, safer working environments and the timely payment
of wages as well as payment for overtime work. Greater cooperation at both the public and private
levels in Pakistan is needed to achieve consensus on minimum standards. Cooperation between
unions in Pakistan and in destination countries can be important in protecting the rights of migrant
workers.
The search by overseas employment promoters for prospective employers abroad is leading to
negative competition in South Asia, resulting in lower wages and uneven standards. A South Asian
code of conduct should be developed.
Overseas employment promoters are important players in maintaining or even increasing the share
of Pakistani workers in destination countries, particularly in the GCC countries. Mistrust about
their practices and a “disconnect” with mangers of migration should be addressed, as the National
Emigration Policy requires.
Managers of migration and the Federal Investigation Agency should collaborate to address overseas
employment promoters’ concerns and complaint about the lack of support for them.
46 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
References References
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migration and remittances in KP province of Pakistan (Islamabad, Pakistan Institute of Development
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2008 (Dhaka).
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Saudi Arabia and the United Arab Emirates (Islamabad).
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Jureidini, R. 2014. Migrant labour recruitment to Qatar. Report for Qatar Foundation Migrant
Worker Welfare Initiative (Doha, Qatar Foundation).
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coming down? IMF Working Paper (Islamabad). Available at: www.imf.org/external/pubs/ft/
wp/2011/wp11200.pdf [5 June 2015].
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Wing).
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(Islamabad, Policy Planning Cell, Government of Pakistan).
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Workshop (Karachi, Lawyers for Human Rights and Legal Aid).
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Policy Planning Cell, Ministry of Labour, Manpower and Overseas Pakistanis).
Overseas Pakistanis Foundation. 2014. “Challenges and opportunities for Pakistan”. Presentation
by the Managing Director, National Conference on Skills in Demand in GCC Countries, 26 June,
Islamabad.
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Panizzon, M. 2010. Trade and labor migration, GATS mode 4 and migration agreements. Occasional
Paper (Geneva, Friedrich Ebert Stiftung).
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operation and Development. 2013. Contribution of DESA and the OECD to the United Nations
high-level dialogue on migration and development. Available at: www.oecd.org/els/mig/World-
Migration-in-Figures.pdf [accessed 5 July 2016].
Wickramasekara, P. 2002. Asian labour migration: Issues and challenges in an era of globalization.
International Migration Papers No. 57 (Geneva, International Migration Programme, International
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Websites
Migration: www.unesco.org/new/en/social-and-human-sciences/themes/international-migration/
[accessed 5 July 2016].
Role and functions of the Bureau of Emigration and Overseas Employment, Protector of Emigrants
Offices and community welfare attachés: www.beoe.gov.pk/About_Us.asp [accessed 5 July 2016].
Roles, functions and success stories of Punjab Skills Development Fund: www.psdf.org.pk/
[accessed 5 July 2016].
Table A2. Share of agriculture in total employment in Pakistan, various years (%)
Table A3. Share of services in total employment in Pakistan, various years (%)
Table A4. Share of wage and salaried in total employment in Pakistan, various years (%)
Table A6. Share of informal sector in total employment in Pakistan, various years (%)
Table A7. Share of employed working more than 50 hours a week in Pakistan,
various years (%)
Mission statement
To enhance global competitiveness in Punjab, through a quality and productive workforce by
developing demand driven, standardized, dynamic and integrated technical education and vocational
training service.
Objectives
n Promote and provide demand driven technical education and vocational training.
n Re-engineer and consolidate the existing technical education and vocational training system
under one management structure.
n Develop a dynamic technical and vocational training system to ensure horizontal and vertical
mobility.
n Regulate and develop standards of technical education and vocational training, including
internationally recognized curriculum, examination and certification system.
n Upgrade teaching abilities, skills and knowledge of teaching staff.
n Upgrade teaching equipment to the required standards.
n Establish close relationship with various sectors of economy namely Agriculture, industry,
Services and Commerce.
n Assess the human resource training needs in the context of domestic and global markets.
n Enhance the participation of Private Sector in training activities at Management level.
n Establish a system of public coordination through Boards of Management at the district level,
coordinating all institutions in the district and their administration.
n Motivate the local entrepreneurs to patronize the training programmes of TVET Authority
institutions, provide on-the-job training facilities and employment to graduates.
n Set up regular monitoring, evaluation and feedback system for the vocational training and
teaching education to respond efficiently to the existing and changing demands of the economy.
n Develop and regulate examination, trade testing and certification system to ensure uniformity of
education and training standards.
n Prepare training plans, programs and projects keeping in view the local as well as foreign human
resource training requirements.
n Study and propose changes in the existing training legislation.
n Develop and offer need-based short courses in the sector of new technologies to industry and
also offer services for solutions regarding associated production problems.
n Establish a staff development system to offer demand-oriented teacher and instructor training
and upgrading of performance.
n Organize and conduct seminars and workshops for various types of personnel associated with
vocational training and technical education.
n Establish data banks for skilled workers and technicians.35
35
See www.TVETa.gop.pk/ [accessed 5 July 2016].
52 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Vision
To develop a quality workforce that meets local and international labor market needs by ensuring
excellence in training through research and development, effective management and regulation of
TVET in the province.
Objective
n Promote technical education and vocational training.
n Improve: (i) teaching methodologies and administration in TVET institutes, (ii) infrastructure
and equipment and TVET institutes, (iii) employability of TVET students (graduates) and (iv)
faculty competencies through training.
n Establish: (i) model institutions by upgrading existing institutions, (ii) centres of excellence and
(iii) institute-industry linkages.36
Objectives
The overall objective of the Technical Education and Vocational Training policy is to provide the
economy with qualified and competitive workers and to train citizens to participate in sustainable
growth and poverty reduction by ensuring training opportunities to all social groups without
discrimination.
36
See www.sTVETa.gos.pk/mission.aspx [accessed 5 July 2016].
37
See www.kpTVETa.gov.pk/kpTVETa/index.php/features/objectives [accessed 5 July 2016].
Annex III: Stakeholders
Annex III: Stakeholders
consulted forconsulted
the study for the study
Islamabad
1. Bureau of Emigration and Overseas Employment Rana Matloob, Director Research (former community welfare
attaché, Saudi Arabia)
2. Overseas Employment Promoters Association Chairman and two overseas employment promoters
3. Construction Technology Training Institute Ejaz Hussain, Director
4. Rastgar Engineering Group Imtiaz Rastgar, Ex Chairman, Skill Development Council
5. Pakistan Workers Federation M. Zahoor Awan, General Secretary
6. Returned migrants making efforts Mohsin Ali, Mohsin Steel Works, Tench Bhatta, Rawalpindi
to go abroad again
Lahore
7. Protector of Emigrants Zafarullah Khan, Lahore
8. Overseas employment promoters: Col (Retd) Bashir Ahmad, Managing Partner
Delta Manpower Express
9. Prospective migrant Mukhtar Ahmad
10. Group of prospective migrants Lahore
11. TVET Authority Azhar Iqbal Shad, GM Academics
12. Ahmad Hassan Polytechnic (private sector) Abeer Naqvi, Principal, Lahore
13. Punjab Vocational Training Council Sajid Naseer Khan, Managing Director
14. Lahore Chamber of Commerce and Industry Engineer Sohail Lashari, President
15. ACE Employees Union affiliated with Isthtiaq Virk, Executive Committee Member, Asia-Pacific
Building Workers International
Karachi
16. TVET Authority Syed Nazar Ali, Director Operations
17. Women Vocational Training Institute, Bufferzone Naheed Nasir, Principal
18. Vocational Training Institute, Aijaz Ahmed Baig, Principal
Al-Hyderi, N. Nazimabad
19. The Hunar Foundation Muhammad Ali Siddiqui, Principal
20. Employers Federation of Pakistan Khawaja Nauman, President
(also participated by Secretary General)
21. Lawyers for Human Rights and Legal Aid Zia Ahmed Awan, President
22. Discussion with a group of prospective migrants Aqeel Ahmad, Muhammad Ijaz, Adnan Khan, Fazal Adnan,
in the office of Lawyers for Human Rights Zahoor Ahmad, Muhammad Luqman, Kamran Afridi,
and Legal Aid Muhammad Anees, Amjad Ali, and Fazal Razzaq
23. Discussion with a group of returned migrants Qazi Fawad, Azeem Khan, Shahid Yaqoob, Muhammad
in the office of Lawyers for Human Rights Azam, Muhammad Imran, Manzoor Ahmad and Rashid
and Legal Aid Memon
24. Skills Development Council Ahsanullah Khan, Chairman (also participated by Syed Nazar
Ali, Director Operations)
25. Workers Employers Bilateral Council of Pakistan Ahsanullah Khan, Chairman (also participated by five
members from employers and workers)
26. Skill Development Council Ahsanullah Khan, Chairman and Chief Executive Officer
27. Plant Level Leadership of Pakistan Workers Informal brainstorming session with participants of Para Legal
Federation, Karachi Region Workshop attended by plant leaders
54 From pakistan to the gulf region: An analysis of links between labour markets, skills and the migration cycle
Peshawar
27. TVET Authority Shakil Ahmed, former Director General
28. Khyber Pakhtunkhwa Chamber of Commerce Zahid Ullah Shinwari, President and Mohammad Shafiq,
and Industry Senior Vice President
29. Skills Development Council Haji Muhammad Javed, Chairman
Islamabad
30. Policy Planning Unit, Ministry of Overseas i: Fayyaz Ahmed Malik, Chief (on phone)
Pakistanis and Human Resource Development ii: Tanweer Khaliq, Dy. Chief
31. National Training Bureau Tariq Mahmood, Director Training
Karachi
32. Employers Federation of Pakistan Fsiul Karim Siddiqui, Secretary General
33. Benazir Bhutto Saheed Human Resource i: Air Marshal (R) Riaz Uddin Shaikh, Chairman
Development Board ii: Nasim ul Ghani Sahito, Provincial Coordinator
34. Hunar Foundation Syed Javed Hassan, Chief Executive Officer
35. Memon Industrial and Technical Institute i: H.M. Shazad, Chairman
ii: Shahab Hassan, Chief Operating Officer
iii: Monis Ali, Project Manager
36. Skills Development Council/Workers i: Ahsanullah Khan, Chairman
Employers Bilateral Council of Pakistan ii: Members: Anwar H. Haidri, U.R. Usmani, Shouket Ali
37. Sindh TVET Authority i: S.M. Kaleem Makki, Managing Director
ii: Syed Nazar Ali, Director Operations
iii: Masroor Sheikh, Director Academic and Training
Lahore
38. Punjab TVET Authority Azhar Iqbal Shad, General Manager, Academics
39. Punjab Vocational Training Council Sajid Naseer Khan, Managing Director
40. Punjab Skills Development Fund i: Ali Akbar Bosan, Chief Operating Officer
ii: Azka Munir, Manager Human Resources (and Placement)
41. Skills International Pvt. Ltd Asad Ai Warraich, Country Manager
FROM PAKISTAN TO THE GULF REGION:
AN ANALYSIS OF LINKS BETWEEN LABOUR
MARKETS, SKILLS AND THE MIGRATION CYCLE
This report addresses some of these issues, with a special focus on the role
of skills in Pakistan, including skills training, certification, skills matching and
recruitment practices.
This Publication has been produced with the assistance of the European Union and the German
Federal Ministry for Economic Cooperation and Developoment (BMZ). The content of this
publication is the sole responsibility of the author and can in no way be taken to represent
the view of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the
International Labour Organization, the European Union and/or the German Federal Ministry for
Economic Cooperation and Development (BMZ).