Population,LabourForce andEmployment

Fig1:Actualversusprojectedpopulation,selectedcountries
1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 CHINA INDIA USA INDONESIA BRAZIL PAKISTAN

16

Pakistanistheworldssixthmostpopulouscountry1.Withanestimatedpopulationof169.9millionasat endJune 2009, and an annual growth rate (revised) of 2.05 percent, it is expected that Pakistan will becomethefourthlargestnationonearthinpopulationtermsby2050(Fig16.1).

ActualPopulation(2008) ProjectedPopulation(2050)

Thousands

Withamedianageofaround20years,Pakistanisalsoayoungcountry.Itisestimatedthatthereare currentlyapproximately104millionPakistanisbelowtheageof30years.Totalworkingagepopulation is121.01million,withthesizeoftheemployedlabourforceestimatedat52.71millionasof200809.

Table16.1:SelectedDemographicIndicators 2007 2008 2009 2010 TotalPopulation(million) 162.91 166.41 169.94 173.51 UrbanPopulation(million) 56.82 58.74 60.87 63.05 RuralPopulation(million) 106.09 107.67 109.07 110.46 TotalFertilityRate(TFR) 3.9 3.8 3.7 3.6 CrudeBirthRate(PerThousand) 29.1 28.7 28.4 28.0 CrudeDeathRate(PerThousand) 7.9 7.7 7.6 7.4 PopulationGrowthRate(Percent) 2.12 2.10 2.08 2.05 LifeExpectancy(Years) 63.4 63.7 64.1 64.5 Male 62.7 63 63.3 63.6 Female 64.1 64.5 65.0 65.4 Source:SubGroupIIonPopulationProjectionsforthe10thFiveYearPeoplesPlan201015.

Source:World Bank

Pakistanspopulationestimateshaveundergonearecentrevision.Latestestimatesarebasedonrecentprojectionscarried th outbytheSubGroupIIonPopulationProjectionsforthe10 FiveYearPeoplesPlan201015.Thesewereofficiallyreleased aftertheStatisticalportionoftheEconomicSurveywenttoprint.Therefore,thepopulationnumbersusedinthischapterwill not tally with the Federal Bureau of Statistics estimates used to calculate percapita income in Table 1.5 of the Statistical Appendix.
1

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EconomicSurvey200910

Theproportionofpopulationresidinginurbancentreshasrisento36%.Since1950,itisestimatedthat Pakistan'surbanpopulationhasexpandedoversevenfold. Despite a gradual decline in the Total Fertility Rate (TFR), currently close to 4, Pakistan has been a laggardinachievingabreakthroughonthisfront. Fig2:TrendinTotalFertilityRateinPakistan19702009
7 6 5 4 3 2 1 0 197075 1984 198691 199296 199700 2006 2007 2009
Source:NationalInstituteofPopulationStudies(NIPS)basedonPDSSurvey2007(FBS)

TheleveloffertilityinPakistanremainedconstantat6.8childrenperwomanfrom1961through1987, population grew as life expectancy increased and fertility rate remained constant. Growth rate of populationdeclinedduring19902000becausefertilityratedeclinedrapidlyduringthisperiodandlife expectancystagnated.Fertilityratebeganbydecliningrapidlyinthedecadeof19912000,fallingfrom 6.3 to 4.8 children. The fertility decline started around 1988 with a reduction of approximately 2 children per woman in each decade through 2000 and later years, the subsequent decade 20002009 hasseenaslowingofthefertilitytransitionwithafallfrom4.8toabout4.0. Thedraftpopulationpolicy200910envisagestoreducefertilitylevelfrom3.56(2009)to3.1birthsper womanbytheyear2015.Toachievethiscontraceptiveprevalenceratehastoincreasefrom30to60 per cent by 2030. Lately the rise in CPR was from 12 to 28 from 1991 to 199798, an average of 2 percentayear,therisefrom1998until2004is2833,lessthanonepercentayear.
Table16.2:TOTALFERTILITYRATESCOMPARISON(19702010) Country 197075 197580 198085 198590

1995 200005 200510 2000 Pakistan 7.00 6.80 6.60 6.45 5.67 4.98 4.44 4 Bangladesh 6.85 6.63 5.92 4.89 3.96 3.30 2.80 2.36 India 5.26 4.89 4.50 4.15 3.86 3.46 3.11 2.76 China 4.77 2.93 2.61 2.63 2.01 1.80 1.77 1.77 Source;PopulationDivisionoftheDepartmentofEconomicandSocialAffairsofUnitedNationsSecretariat,World PopulationProspects:The2008Revision. (ThetableaboveissourcedfromUnitedNationsstatistics,whichmaydifferfromothercitedfiguresusedelsewhere inthedocument). 199095

16.1PopulationOverview PopulationtrendsarebestexplainedbyCBR(Crudebirthrate),andCDR(Crudedeathrate).Theseshow the growth and decline of a population per thousand births while IMR (Infant mortality rate) is the 236

Population,LabourForceandEmployment

number of newborns dying under a year of age divided by the number of live births during the year times1000.Theinfantmortalityrateisalsocalledtheinfantdeathrate.Itisthenumberofdeathsthat occurinthefirstyearoflifefor1000livebirths.Alltheseindicatorshaveimprovedifweseethepattern from the last census in 1998. CBR declined by 20.32%, CDR by 12.79% and IMR by 17.73% taking the time period from 19992009. This analysis confirms the juncture we are at, in terms of demographic transition.Fertilityandmortalitybothareonthedeclineandwehaveanopportunitytoreapthewidely acclaimedDemographicDividend. Fig3:TRENDSINCBR,CDR&IMR
120 100 80 60 40 20 0 1991 1992 1993 1994 1995 1996 1997 1999 2002 2003 2004 2006 2007 2008 2009 Source:PlanningandDevelopmentDivision CBR CDR IMR

Growth rates in the above parameters have been fluctuating since 1950. The period of demographic transition when dependency ratio decreased is clearly marked as the demarcation towards lower growthratesandthatoccurredfrom1990onwards.Thegrowthrateistodeclinefurtherbringinghope thatthedemographicdividendwouldmaterialize. 16.2RegionalDemographics Pakistan does well amongst its immediate neighbours in terms of basic demographics but the growth rateofPakistanisthehighestamongthecountriesunderreview.Populationgrowthisskewedtowards theyoungandayouthbulgehasevolvedovertime.
Table16.3:Demographicsofselectedcountries Birthsper1,000 Deathsper1,000 Country population population CHINA PAKISTAN BANGLADESH INDIA 12.2 25.1 23.8 21.3 6.9 7.1 9.1 7.5

Population million 1,300 177.2 158.1 1,100

Growthrate (percent) 0.49 1.51 1.27 1.38

Source:USCensusBureauInternationalDatabase,2010

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EconomicS Survey200910

16.3Dem mographicDiv vidend Thedemo ographicdivid dendisarise eintherate ofeconomic c growth due to a risin share of w ng working age people in a populatio The popu on. ulation bulge enters and stays in the working a group, an the rate o growth of the working age nd of g age popu ulation surpasses that of total popula ation, with a conseque increase in the workin age ratio. This occurs ent i ng . whenthe efertilityrate efallsandthe eyouthdepe endencyrate declines. During this demographic opportunity output per d y, r capita rises. This occurs in th last stages of the o he demograp phic transitio a situation about to happen in on, o Pakistan,whenfertility yisinthepro ocessoffallingtowardsits finalrepla acementlevel. The life c cycle consum mption model suggests that different age groups i a populati have diff l in ion ferent economic implications The young need inves c s. g stment in he ealth and education, adu supply la ults abour, incomean ndsavingsan ndatoldages sthereisan needforretire ementincom meand,again, ,arequireme entto investinh health.Asthe erelativesize eofeachofth heseagegrou upschangein nthepopulation,therespe ective impact of the econom behaviour associated with differen ages also changes. Thus a larger la f mic nt abour force is g good for the economy pr rovided it is put to use. It has been argued that the demogr raphic dividend played a role in the "eco e onomic mirac of the Ea Asian Tige and even in the econ cle" ast ers, n nomic boom in Ireland in th 1990s. As the propor he s rtion of work kers rises or falls, so do opportunitie for es economic growth. This is a time sp c pecific windo of opport ow tunity, and is not going to last forever The o r. adult producers tur into depe rn endants as time passes. Crude deat rate (CDR) will continue to th before increasing again after year 20 045. This increase would be due to the changing age g decline b structureofthepopula ation,whichw wouldthenh haveabiggerproportionofelderlypopu ulation. Combining the popula ation growth rate and th growth ra of the e h he ate economically active population thhasalarge eandstatisticallysignifica antnegativee effect deliversstrikingresults.Whilepopulationgrowt onpercapitaincomeg growth,thise effectiscoun nteractedbya astatistically significantpositiveeffect tfrom growth in the share of the popula n o ation that is economically active. Wit the percen th ntage share of 52 percentin nthelate80s stoearly90s s,theproport tionofworkingagepopulation(1564 4years)inPak kistan has reach almost 59 percent in 2006. The sh hed 9 hare of work king age popu ulation will p peak in 2045 to 68 percent b before startin to decline again, the re ng eason being t growing share of olde age population. the er Theappro oximatelythr reepercentoldagepopula ationsharew wouldincrease etoalmost1 10percentby y2050 in Pakista according to the medi an, ium variant s scenario of th United Na he ations (2005). The share o the of youngage einthetotalpopulationw withdecreasin ngfertility,w willshowade ecliningtrend.Fromthecu urrent 38percen nt,theyoung gpopulation isexpectedt tocompriseo only23perce entofthecountryspopulation by2050. Lookingatth helowandh highvariants itisbelieved dthat18and27percent ofthepopulation, respective ely,wouldco ompriseyoungpeopleby 2050.These trendsinfert tilityandmortalityratesi inthe country indicate an in ncreasing me edian age of the populat tion. From a median age of 20 years, it is projectedtoincreaset toanadult33 3yearsby205 50(mediumv variant). The medi age of th population in Pakistan started to increase in th 1990s and with decre ian he n he d, easing fertilityle evel,thetrend dwillcontinu ueinfuture.If fthedemogr raphictransiti ionfollowsaslowerpathinthe country,t themedianag gewouldbearound29ye earsby2050,comparedto o38yearsift thefertilityde ecline is more r rapid. By 20 Crude birth rate (CB is expected to almos half, at 16 births per 1000 050 BR) st 6 populatio on. 238

Population,LabourForceandEmployment

Pakistanisalsoexperiencingadwindlingdependencyratio.Reduceddependencyratiosmeanthatthe proportionofthepopulationinworkingages(1564)continuestoincreasewhilethoseintheyounger ages (014) decrease. The proportion of the elderly in the total population is projected to show a substantial increase after 2025. The decline in dependency ratio can affect per capita output through severalintermediatechannels.First,thenumberofproducerssurpassestheconsumerssecondlysavings increase which can make capital more available and thus relatively cheaper. It facilitates increased savings and investment, at both micro and macro levels. At the micro level, parents with fewer dependentchildren can morereadily affordproductiveinvestments,andat themacrolevelresources otherwise needed to support an increasing population can be put to directly productive investments. Countriescanmovefrombeingheavilydependentonexternalfinancetoapositionofrelativefinancial selfsufficiency. A second channel is through improving the quality of human capital. Education affects mortality and fertilityrates.Notonlythepopulationsizebuttheagecompositionisalsoalteredbyeducation.While currentpopulationandreproductivehealthpoliciesonlyfocusonthegapbetweentheactualandthe desiredfamilysize,femaleeducationcanfosterastrictlyvoluntaryfertilitydecline.TheTFRisexpected to continue to fall, reaching a near replacement level by 2050, according to the medium variant projections[UN(2005)]. The above discourse boils down to one point: capitalizing on the demographic dividend demands focusedpolicy.Flexiblelabourmarkets,anopeneconomy,provisionofwelfareandpolicyforthefuture ageingpopulation,areessentialrequirementsforthedemographicdividendtomaterialize.

Source:UScensusbureauInternationalDatabase

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The expansive type population pyramid shown above depicts a greater preponderance of young than old in Pakistans population. The youth bulge has been described by some as a situation in which 20 percentormoreofapopulationisintheagegroup15to24years.Itistheresultofatransitionfrom hightolowfertilityabout15yearsearlier.Theyouthbulgeconsistsoflargenumbersofadolescentsand young adults who were born when fertility was high followed by declining numbers of children born afterfertilitydeclined. 16.4AgeCompositionofPopulation Impactofchangingagecompositionshasalreadyoccurredbecauseofthegradualfertilitydeclinethat hasbeenunderwayinPakistansincethelate1980sandearly1990s.Awayoflookingatthechangesin agestructureistoexaminedependencyratios,i.e.,theratioofpersonsunder15andover64topersons between15and64.Thisratioisanindicationofhowmuchoftheyoungpopulationisincreasingand thatofoldisdecreasing.Thedependencyratiohasalreadydecreasedfrom0.86to0.75inthefifteen yearssincefertilitybegantodeclinein1990.Theratiowillcontinuetodeclineforseveralmoreyearsto beyond2030,mainlybecauseofthereductionsintheproportionsofthepopulationattheyoungages of 014, and a continuing increase in the working age population. Age is the foremost criteria of harnessingthepotentialofeconomicgrowththroughthelabourforceparticipation.
Table16.4:PopulationbyAgeGroups;Pakistan Projection(000s) AGEGROUP 2005 2010 2015 2020 2025 2030 TOTALM+F 155,772 173,383 192,262 211,397 229,377 246,272 MALES 04 9,562 11,886 12,429 12,711 12,350 12,062 59 10,047 9,287 11,631 12,205 12,513 12,180 1014 10,130 9,936 9,210 11,554 12,133 12,446 1519 9,897 10,047 9,878 9,161 11,503 12,084 2024 7,885 9,767 9,958 9,801 9,089 11,428 2529 6,240 7,729 9,655 9,859 9,706 9,001 3034 5,077 6,099 7,627 9,555 9,763 9,617 3539 4,460 4,957 6,008 7,536 9,459 9,673 4044 4,042 4,349 4,869 5,919 7,440 9,354 4549 3,465 3,926 4,249 4,770 5,812 7,320 5054 2,796 3,331 3,795 4,120 4,637 5,664 5559 2,035 2,633 3,155 3,609 3,932 4,440 6064 1,543 1,854 2,416 2,911 3,346 3,662 6569 1,199 1,341 1,625 2,133 2,587 2,992 7074 841 973 1,100 1,346 1,782 2,179 75+ 921 1,077 1,271 1,482 1,796 2,315 TOTAL 80,140 89,190 98,874 108,670 117,849 126,417 Source: WorldBank'sWorldDevelopmentIndicators(WDI)database

16.5PopulationProjections Below are the population projections for Pakistan through to 2030. The term Medium variant means thatifthepopulationincreasegoesatabalancedpacethisscenariowouldunfold,Highandlowvariant meanifthe changeoccursatahighfertilityoralowfertility pace.Constant fertilityvariant describes stablefertilitychange. 240

Population,LabourForceandEmployment (Thousand) Constant Medium High Low Year fertility variant variant variant variant 2010 184753 184753 184753 184753 2015 205504 207325 203683 207918 2020 226187 231276 221098 234354 2025 246286 255820 236751 263398 2030 265690 280054 251345 294812 Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, WorldPopulationProspects:The2008Revision Table16.5:PakistanPopulation20102030

Agethatdividesthepopulationintwopartsofequalsizeiscalledmedianage,thatis,thereareasmany personswithagesabovethemedianastherearewithagesbelowthemedianage. Taking five year period of 201015 and 202530, it is predicted by the United Nations that life expectancyinPakistanwouldincreasefrom68to71.9.Thepopulationgrowthratewoulddecreaseto 1.52, and total fertility rate to 2.70. The crude birth rate (CBR), crude death rate (CDR) and infant mortalityrate(IMR)areprojectedunderthisscenariotodeclineto21.4,5.6and42.2respectively. 16.6URBANIZATION During 19502008, Pakistan's urban population expanded over sevenfold, while the total populationincreasedoverfourfold.Dramaticsocial changes have led to rapid urbanization and the emergence of megacities. Pakistan is the most urbanized nation in South Asia with city dwellers making up 36% of its population, (2008). While the urbanizationrateis3%(200510).Demographically, urbanizationisgaugedbothinabsoluteandrelative terms as growth of cities within a defined area. According to base case projections, the year 2030 will be a major landmark in Pakistans demographics. For the first time in its history, the urban population in Pakistan will constitute 50% of thetotal.
Table16.6:MEDIANAGE Pakistan Medianage(years) Mediumvariant20102030 Year Medianage 2010 21.3 2015 22.5 2020 23.7 2025 25.0 2030 26.4 Source:PopulationDivisionoftheDepartmentof EconomicandSocialAffairsoftheUnitedNations Secretariat,WorldPopulationProspects:The2008 Revision

Itisbelievedthattherateishighestwhenindustrializationtakesplaceandthegraphshowsthatinthe formativeyearsofPakistantheratewashighsincetheurbanpopulationhadampleopportunitiesand thetrendcontinuedevenintheeighties.Theshifttourbanareasisstilltakingplacebutisconsideredto besmallascomparedtothatinmanyotherpartsoftheworld. 241

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Fig4:ProjectionsofpopulationinurbanareasofPak(%)(20152030)
2030 2025 2020 2015 0 10 20 30 40 50 Source:WorldUrbanizationProspects 2009

MostprojectionsareoftheviewthattherateofurbanizationinPakistanwillcontinuetoincrease.This isduetotheinbuiltmomentumofpasthighgrowthrates.Morethanhalfofthetotalurbanpopulation of Pakistan (2005) lived in eight urban areas: Karachi, Lahore, Faisalabad, Rawalpindi, Multan, Hyderabad,GujranwalaandPeshawar.Between2000and2005,thesecitiesgrewattherateofaround 3percentperyear,anditisprojectedthatthisgrowthratewillcontinueforthenextdecade.
Table16.7:PopulationofMajorCitiesofPakistan CITY KARACHI LAHORE FAISALABAD RAWALPINDI MULTAN HYDERABAD GUJRANWALA PESHAWAR QUETTA ISLAMABAD 1998census 9,339,023 5,143,495 2,008,861 1,409,768 1,197,384 1,166,894 1,132,509 982,816 565,137 529,180 1981census 5,208,132 2,952,689 1,104,209 794,834 732,070 751,529 600,993 566,248 285,719 204,364 CAGR(%) 3.49 3.32 3.58 3.43 2.93 2.62 3.79 3.29 4.09 5.7 2010 13,386,730 7,214,954 2,912,269 2,013,876 1,610,180 1,521,231 1,676,357 1,386,529 871,643 972,669

Source:PopulationCensusOrganization,EAWing

16.7MegaCities Mega cities are defined as having a population in excess of 10 million people or a minimum level for populationdensity(atleast2,000persons/squarekm).Thesemegacitiesarebeingagglomeratedata highrate.In1950,only29.8percentofpeoplelivedinurbanareaswhereasby2020,anestimated57 percentwillliveincities. 242

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Populationisnottheonlydistinguishingfeatureofmegacities;theirindispensablefunctionalityisalso thecaseinpoint.Megacitiesaretheproductofthedemandsofcurrenteconomicera.Acriticalnumber of cities are postindustrial production sites for the leading industries of our period, finance and specializedservices,theyarenationalortransnationalmarketplaceswherefirmsandgovernmentscan buyfinancialinstrumentsandspecializedservices,theyfunctionascentresforthecoordination,control andservicingofglobalcapital. According to Marshall (1890), the geographical concentration of economic activities can result in a snowball effect, where new entrants tend to agglomerate as they benefit from higher diversity and greaterspecializationinproductionprocesses.Workersalsobenefitfrombeinginanagglomerationas theycanexpecthigherwagesandhaveaccesstoalargerchoicesetofemployers.Manynewmarkets andinvestmentopportunitiesin,forexample,infrastructure,transportation,healthcare,educationand recreation will unfold. Handled well, urban expansion can be the key to continuing economic success (McKinsey). The population of Karachi was about 105,000 inhabitants by the end of the 19th century, with a cosmopolitanmixofdifferentnationalities.NongovernmentalandinternationalestimatesofKarachi's populationrunanywherefrom12millionto18million.Thecity'spopulationisgrowingatabout5%per year (mainly as a result of ruralurban internal migration), including an estimated 45,000 migrant workers coming to the city every month from different parts of Pakistan while the overall rate of urbanizationforPakistanis3%.
Table16.8:TOP15MEGACITIESOFTHEWORLDIN2010 RankOrder 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 City Tokyo Delhi SaoPaulo Mumbai(Bombay) MexicoCity NewYork Shanghai Kolkata(Calcutta) Dhaka Karachi BuenosAires LosAngles Beijing Riodejaneiro Manila Population (millions) Japan 36.67 India 22.16 Brazil 20.26 India 20.04 Mxico 19.46 UnitedStatesofAmerica 19.43 China 16.58 India 15.55 Bangladesh 14.65 Pakistan 13.12 Argentina 13.07 UnitedStatesofAmerica 12.76 China 12.39 Brazil 11.95 Philippines 11.63 Source:WorldUrbanizationProspects:The2009 Revision. Country

16.8PakistaniDiaspora There are approximately 7 million Pakistanis living abroad, remitting close to US$8 billion annually through formal channels to Pakistan. Worker remittances are the second largest source of foreign exchangeafterexports.ItisbelievedthateconomicmigrantsconstituteavastmajorityofthePakistani 243

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diaspora. Remittances,whichareusuallysenttoimmediatefamilymemberswhohavestayedbehind,areamong themostdirectbenefitsfrommigration;theirbenefitsspreadbroadlyintolocaleconomies.Theyalso serve as foreign exchange earnings for the origin countries of migrants. In 2007, US$ 5,998 million in remittances were sent to Pakistan. Average remittances per person were US$ 37, compared with the averageforSouthAsiaofUS$33.
Table16.10:Remittances Totalremittanceinflows(US$millions) India Bangladesh Pakistan SriLanka Nepal Globalaggregates SouthAsia World

35,262 6,562 5,998 2,527 1,734

Remittancespercapita(US$) Luxembourg SriLanka Nepal Bangladesh Pakistan India Iran(IslamicRepublicof) SouthAsia World

3,355 131 61 41 37 30 16 33 58

53,201 370,765

Source:HumanDevelopmentReport2009,UNDP

Most of the worlds 195 million international migrants have moved from one developing country to anotherorbetweendevelopedcountries.Pakistanhasanemigrationrateof2.2%.Themajorcontinent ofdestinationformigrantsfromPakistanisAsia,with72.5%ofemigrantslivingthere.
Table16.11:Emigrants Originofmigrants Afghanistan Nepal Pakistan Iran India Globalaggregates SouthAsia World

Emigrationrate(%) 10.6 3.9 2.2 1.3 0.8 1.6 3.0

Majorcontinentofdestinationformigrants Asia Asia Asia NorthernAmerica Asia Asia Europe

(%) 91.4 95.0 72.5 39.6 72.0

78.0 33.4 Source;HumanDevelopmentReport2009,UNDP

The United States is host to nearly 40 million international migrants more than any other country thoughasashareoftotalpopulationitisQatarwhichhasthemostmigrantsmorethan4inevery5 peoplearemigrants.InPakistan,thereare3,554thousandmigrantswhichrepresent2.1%ofthetotal population.

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Population,LabourForceandEmployment Table16.12:Immigrants Destinationof migrants UnitedStates India Pakistan Iran Bangladesh Maldives Globalaggregates SouthAsia World

Immigrantstock (thousands) 39,266.5 5,886.9 3,554.0 2,062.2 1,031.9 3.2 13,847.0 195,245.4

Destinationofmigrants Qatar Bhutan Pakistan Iran Nepal China Afghanistan

Immigrantsasashareof population(%)2005 80.5 5.7 2.1 2.9 3.0 0.0 0.4

SouthAsia 0.9 World 3.0 Source;HumanDevelopmentReport2009,UNDP

16.9PolicyInitiatives KeyInitiatives: Tocopewiththeevolvingdemographicchallenges,thedraftNationalPopulationPolicy2010seeksto; PursuePopulationStabilizationgoalthroughearlycompletionoffertilitytransition. Facilitate realization of demographic dividend by linking fertility transition process with skills promotionandemploymentgenerationpolicies. Attainabalancebetweenresourcesandsizeofpopulation. Increaseawarenessoftheadverseconsequencesofrapidpopulationgrowthatalllevel. Promotesmallfamilynorms. Toachievethesegoals,thepolicyaimsatthefollowingkeyobjective. ProvideaccessoffamilyplanningandReproductiveHealthServicestotheremotestandpoorest areasofthecountryby2015. Reduceunmetneedforfamilyplanningfrom25to20percentby2015. Reducefertilitylevelfrom3.56(2009)to3.1birthsperwomanbytheyear2015. Ensurecontraceptivecommoditysecurityforallpublicandprivatesectoroutletsby2015. Improvematernalhealthby: Encouragingbirthspacing(ofmorethan36months), Reducingincidenceoffirstbirth(inageslessthan18),and Reducingproportionofmothersgivinglatebirth(agesbeyond34)

Attainreplacementlevelfertilityi.e.2.1birthsperwomanby2030 Achieve universal access to safe and quality reproductive health/ family planning services by 2030 Reduceunmetneedforfamilyplanningfromexisting25to5percentby2030 245

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Achievecontraceptiveprevalenceratefrom30to60percentby2030 16.10LabourForceAndEmployment Introduction: Pakistanisthe10thlargestcountryintheworldaccordingtothesizeofthelabourforce.Onthebasisof aparticipationrateof32.8percent,asperthelatestLabourForceSurvey200809,thelabourforceis estimated at 53.72 million. Of the total labour force, 50.79 million are employed while 2.93 million personsareunemployed,resultinginanunemploymentrateof5.5percent. If we see the unemployment scenario in the past, then compared to historical trend of 3 percent, unemployment levels remained around 5 percent post19931999,butinFY02asharpincreaseof8.27 percent was seen. The rate fell during 200307. However, reaching a low point of 5.2 percent in 200809 it rose again to 5.6 percent in FY09. There hasbeenadeclineinunemploymentratesince2003 04 accompanied by a substantial rise in the unpaid familyhelpersparticularlyfemales.
SIZEOFLABOURFORCE RANK COUNTRY 1 CHINA 2 INDIA 8 BANGLADESH 10 PAKISTAN 33 NEPAL 56 SRILANKA LABOURFORCE (million) 812.7 46.7 72.5 55.8 18 8.1 Source:CIAFactbook

Economicgrowthcontributestorealwageincrease,povertyalleviationandreductioninunemployment rate. In the labour market the forces of supply and demand jointly determine price (in this case the wagerate)andquantity(inthiscasethenumberofpeopleemployed).Itisinterestingtonotethatthe triggers to labour demand have been remittances by overseas Pakistanis as well as the structure of economyasrepresentedbyownershippatternoflandholdingsandcontroloverfinancialassets,bothof whichhaveimplicationsforemployment. With the demographic transition taking place in Pakistan, youth unemployment takes centre stage. Youthshouldbeabsorbedproductivelywellbeforetheperiodwhenoldagedependencythreatensthis potential. Consider that the labour force is growing every year but the opportunities for employment aredecliningandthattooatafastrate.Thegoodnewsthoughisthatyouthunemploymentisbelow theglobalaverageinourcountry. Trendsinagespecificunemploymentratesdifferconsiderablyformalesandfemalesinthelabourforce. Male unemployment has increased in the last two decades whereas female unemployment has decreased. The gap between the projected female working age population and the projected labour force is likely to increase sharply over time. The reduction in this gap is desired. Although unemployment among females has historically been higher than among males, the gender gap has narrowedconsiderablyovertime. 16.11KeyIndicators In 200809, the estimated labour force grew by 3.7%. The growth in female labour force was greater thanmalelabourforceandconsequentlytheincreaseinfemaleemploymentwasgreater.Employment comprisesallpersonsten yearsofageandabovewhoworkedatleastonehourduring thereference periodandwereeitherpaidemployedorselfemployed.Thelabourforceisgrowingandthegrowth inFY09isgreaterthanthatinFY08. 246

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Indicators LabourForce(Inmillions)

Fig-3: Labor force, Employed & Unemployed (2003-09) 60 50 million

Labor force Employed Unemployed

Total Male Female

200708 51.78 40.82 10.96

200809 53.72 41.91 11.81

40 30 20 10 0 2003-04 2005-06 2006-07 2007-08 2008-09 Source: Variousissuesoflabourforcesurveys,FBS

Source:LabourForceSurvey200809

Unemploymentrateishigherascomparedtothelaststatistics.Thechangeisduetofemalethanmale andurbanthanruralunemploymentrates.
Table16.13:CivilianLabourForce,EmployedandUnemployedforPakistan (inmillions) 0304 0506 0607 0708 0809 LabourForce 45.50 50.05 50.33 51.78 53.72 Employed 42.00 46.95 47.65 49.09 50.79 Unemployed 3.50 3.10 2.68 2.69 2.93 Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics

16.12LabourForceParticipationRates Labourforceparticipationrateisdividedintotwocategoriesi.ecrudeandrefined.Crudeactivityrateis the currently active population expressed as percentage of the total population in Pakistan. Refined activityrateisthecurrentlyactivepopulationexpressedasapercentageofthepopulation10yearsand above.Thisrateenablesinternationalcomparisonbyfactoringintheeffectofagecomposition.Justas crudeactivityrate,therefinedparticipationratealsohadnomajorchangeconsideringtheincreasein totalpopulation
Table16.14:EmploymentTrendandChangesfrom199697and200809(million) Pakistan Rural Urban Year Employed Change Employed Change Employed Change 199900 36.32 2.19 25.55 1.68 10.77 0.01 200102 38.88 2.56 26.66 1.11 12.22 1.45 200304 42.00 3.12 28.81 2.15 13.19 0.97 200506 46.95 4.95 32.49 3.68 14.46 1.27 200607 47.65 0.70 33.11 0.62 14.54 0.08 200708 49.09 1.44 34.48 1.37 14.61 0.07 200809 50.79 1.70 35.54 1.06 15.25 0.64 Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics

Augmented activity rate is based on probing questions from the persons not included in the conventionalmeasureoflabourforce,tonetinmarginaleconomicactivitieslikesubsistenceagriculture, 247

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ownconstructionofonesdwellings.Participationratesuggestsfractionalimprovementacrossareaand gender.However,improvementismoreaccordingtoareai.einurbanthaninruralareasandbygender i.einfemalesratherthaninmales.

Indicators 200708 200809 CrudeActivity(Participation)Rates(%) Pakistan Total 32.2 32.8 Male 49.3 49.6 Female 14.0 14.9 Augmented Total 38.2 38.8 Female 26.3 27.0 Rural Total 33.8 34.3 Male 49.1 49.2 Female 17.9 18.5 Augmented Total 42.3 42.7 Female 35.1 35.6 Urban Total 28.9 29.9 Male 49.9 50.4 Female 6.2 7.6 Augmented Total 30.0 31.0 Female 8.6 9.9 Indicators 200708 200809 RefinedActivity(Participation)Rates(%) Pakistan Total 45.2 45.7 Male 69.5 69.3 Female 19.6 20.7 Augmented Total 53.6 53.9 Female 36.7 37.5 Rural Total 48.8 49.2 Male 71.2 71.0 Female 25.6 26.4 Augmented Total 61.0 61.2 Female 50.2 50.7 Urban Total 38.6 39.3 Male 66.6 66.3 Female 8.4 10.1 Augmented Total 40.1 40.8 Female 11.5 13.1 Source:LabourForceSurvey200809

Population growth and incidentally working age population growth occurred, due to demographic transition, according to which there appears to be a youth bulge and Pakistan has a considerable numberofthepopulationwhichisnotdependant.Pakistanhasthecapacitybutisthereassimilation?
Table16.15:Population,LabourForceandLabour ForceParticipation(LFP)Rates Population(million) Labour Force(million) LFPRate(percent) Year Total Workingage* Total Increase Crude Refined 199798 130.58 88.52 38.20 1.90 29.3 43.3 199900 136.01 92.05 39.40 1.20 29.4 42.8 200102 145.80 99.60 42.39 2.99 29.6 43.3 200304 148.72 103.40 45.23 2.84 30.4 43.7 200506 155.37 108.79 50.05 4.82 32.2 46.0 200607 158.17 111.39 50.33 0.28 31.8 45.2 200708 160.97 114.64 51.78 1.45 32.2 45.2 200809 163.76 116.63 52.68 0.90 32.8 45.7 Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics *Population10yearsandaboveisconsideredasworkingagepopulation.

16.13EmploymentbyStatus Employmentbystatusindicatesthepositiononeoccupiesintheworkforce.StatusinEmploymentrefers 248

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to the type of explicit or implicit contract of employment of the person with other persons or organization.Statusofaneconomicallyactiveindividualiswithrespecttohisemployment.Thereisless changeinstatusduetothefactthatinPakistanthereisalargeinformalsector.
Table16.16:EmploymentStatusbyRegion Total Employers 0.46 Selfemployed 16.77 UnpaidfamilyHelpers 14.20 Employees 17.66 Total 49.09 (Millions) 200708 Urban 0.34 4.51 1.72 8.04 14.61 200809* Rural Total Urban Rural 0.12 0.47 0.34 0.13 12.26 17.06 4.59 12.47 12.48 14.45 1.75 12.70 9.62 17.96 8.18 9.78 34.48 49.94 14.86 35.08 Source:FederalbureauofStatistics*Estimated

Employmentcategoriesaredefinedandtheirchangeduringtheyearisasfollows: Employeeisapersonwhoworksforapublicorprivateemployerandreceivesremunerationinwages, salary, commission, tips, pay in kind. Employees are divided into: Regular paid employees with fixed wage,Casualpaidemployee,Paidworkerbyworkperformed,Paidnonfamilyapprentice.Overtheyear 200809employeesincreasedbothinruralandurbansettings. Employer is a person working during the reference period, on ownaccount or with one or a few partners at a selfemployment job with one or more employees engaged on a continuous basis. Employersalmostremainedthesameduring200708and200809. Selfemployment job is a job where the remuneration is directly dependent upon the profits, or the potentialprofits,derivedfromthegoodsandservicesproduced.Selfemploymentincreasedin200809. Thisreiteratesthefactthatinformalizationofoursectorsistakingplace. Unpaidfamilyworkerisapersonwhoworkswithoutpayincashorinkindonandenterpriseoperated byamemberofhis/herhouseholdorotherrelatedpersons.Thiscategoryalsoincreasedshowingthat thisportionoftheworkforceisjustliketheunemployedonlyworseoff. Theincreaseinselfemployedpersonsaswellasunpaidfamilyworkersindicatesthatactivitiesatthe household level are increasing. Employment status shows marginal changes i.e decrease in the comparativeprofilesofemployeesandselfemployedworkerswhileincreaseinthecaseofemployers. In the Table 16.17 can be observed that the selfemployed males have decreased while female self employmenthasincreased.
Table16.17:EmploymentStatusbySex Total Employers 0.9 Selfemployed 34.2 UnpaidfamilyHelpers 28.9 Employees 36.0 Total 100.0 (%) 200809 Total Male Female 1.2 1.5 0.1 33.3 38.7 13.1 29.7 20.2 65.0 35.8 39.6 21.8 100.0 100.0 100.0 Source:LabourForceSurvey200809

200708 Male 1.2 39.6 19.7 39.5 100.0

Female NA 12.8 65.0 22.2 100.0

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16.14Em mploymentby ySectors Agricultur was and still is the largest sector o the re s of economy but as pop pulation distr ribution is on the n verge of change and 50% of th people will be d he residing i urban are emphasis is going to shift in eas s towardso othersectors. . Considering Table 16.18, the incre ease in agricu ulture and relat ted activities is evident while for other s sectors t the figures are close to each o other. Construct tion shows some increase while services s showdecline
Table16.18 8:EmployedLa abourForcebySectors(%) 200708 Sector Total Male Agriculture e 44.6 36.9 Manufacturing 13.0 13.3 Constructio on 6.3 7.8 Transport 5.5 6.8 Services 13.7 14.4 Others 2.3 2.9 Total 100.00 100.00

Fig4 4:EmployedLab borforcebySec ctors(%)

5.2 0.1

13.66

45.1

6.6

13
Agriculture A Construction C Services S Ma anufacturing Tra ansport Oth hers

Sou urce:LabourForce Survey 200809 2

20080 09 Female Total Male e Fem male 75.0 45.1 37.3 74.0 0 11.8 13.0 13.3 11.9 9 0.4 6.6 8.3 0.4 4 0.2 5.2 6.6 0.2 2 10.6 13.66 11.1 11.6 6 0.2 0.10 2.9 0.3 3 100.00 100.00 100.00 0 100.0 00 Source:LabourForceSurvey2 200809Federa alBureauofSta atistics

mploymentby yProvince 16.15Em Thefollow wingtablegiv vesacompar risonbetween nFY08andFY Y09interms ofareaandp province.Itcanbe seenthatemployedin ndividualsinc creasedinnumberandsodidpopulation.Itshouldbebornein mind thatthisisinnowayc connectedwit thunemploym mentratewh hichincreased dduringthep periodsincei itisin percentag getermsandemployedto otalisinmilli ions.Unempl loymentrateistheunemployedpopulation expressed dasapercent tageofthecu urrentlyactivepopulation. Onecang glanceatTab bleno16.19a andseethatt theemployed dtotalisont therise,beit taccordingto oarea orsex.Bu utthechange eismorepronouncedinruralthanurb banareaand owesmoret tomalesinPunjab andSindh hwhileequiv valentlytobo othgendersinKhyberPuk khtoonkhuaa andBalochist tan.Thechan ngein employed dpersonsisgreatestinPun njabthenSindh,KhyberP Pukhtookhuaandtheleast tinBalochista an.
Table16.19 9:EmployedPakistanandPro ovinces EM MPLOYED AREA/PROVINCE Pakistan Rural Urban Punjab Sindh KhyberPuk khtoonkhua Balochistan n To otal 49 9.09 34 4.48 14 4.61 28 8.97 12 2.26 5.73 5 2.13 2 200708 Male 39.0 06 25.7 79 13.2 27 22.0 07 10.4 43 4.6 65 1.91 Female e 10.03 8.69 1.34 6.9 1.83 1.08 0.22 200809 Total Male Female 50.79 40.04 10.75 35.54 26.46 9.09 15.25 13.59 1.66 29.95 22.68 7.27 12.72 10.67 2.05 5.97 4.77 1.2 2.15 1.92 0.23 Source:LabourForceSurvey y200809 (m million)

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16.16FORMALANDINFORMALSECTORS During the past years it is observed that there has been a large amount of informalization in the agriculture sector. There has been a trend of selfcultivation and a decline in share tenancy. Informalizationisnotjustrestrictedtoagriculture,itisontheriseinnonagriculturesectorsaswell.The shareofformalsectoremploymentshrunkfrom35percentto27percentincaseofmalesandfrom33 percent to 27 percent in case of females from 20002008. Trade and services in urban small scale manufacturing areas attracted the labour market and enhanced informalization of the urban labour market. Table16.20supportsthefindingsthatinformalizationisrisingandthatitismorepronouncedinrural thanurbanareas.Sametrendfollowsaccordingtogender,malesareshiftingfromtheformalsectorso arefemales.
Table16.20:FormalandInformalSectorsDistributionofnonAgricultureworkers(%) Sector 200708 200809 Total Male Female Total Male Female Total 100.0 100.0 100.0 100.0 100.0 100.0 Formal 27.2 27.2 27.4 26.7 26.6 27.6 Informal 72.8 72.8 72.6 73.3 73.4 72.4 Rural 100.0 100.0 100.0 100.0 100.0 100.0 Formal 24.9 25.1 23.2 23.8 24.0 22.2 Informal 75.1 74.9 76.8 76.2 76.0 77.8 Urban 100.0 100.0 100.0 100.0 100.0 100.0 Formal 29.5 29.2 32.5 29.4 29.1 32.8 Informal 70.5 70.8 67.5 70.6 70.9 67.2 Source:Labour ForceSurvey200809FederalBureauofStatistics

16.17Unemployment The global economic turmoil has created unemployment around the world and in Pakistan 2.93 million of the work force is unemployed. Mismatch in job and skills as well as the temporary natureofmostjobsisproblematic.Certainsegments ofthelabourmarketdonotgivesecureemployment. There has been a positive increase of employed labour force in both urban and rural settings; however it should be borne in mind that the populationincreasehasbeentremendoustoo.
Table16.21:AgeSpecificUnemploymentRate(%) Total AgeGroup 200708 200809 1014 9.0 9.3 1519 8.7 9.5 2024 6.8 7.3 2529 4.1 4.3 3034 2.3 2.6 3539 1.5 1.7 4044 1.6 1.5 4549 2.5 2.4 5054 3.7 4.6 5559 6.6 6.1 60yrs&above 12.5 12.7 Source:LabourForceSurvey,200809, FederalBureauofStatistics

Unemployment rate is the unemployed population expressed as a percentage of the currently active population. while Currently Active Population comprises all persons ten years of age and above who fulfill the requirements for including among employed or unemployed during or unemployed duringthereferenceperiodi.eoneweekprecedingthedateofinterview.Unemploymentratehasbeen decreasingovertheyears.Theproportionofunemployedtothecurrentlyactivepopulationhasbeen 251

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decreasingwiththeexceptionof200102whenitincreased.Usuallyitisseenthatunemployedlabour force decreased during the last decade with the exception of a few years. A slight shift in the norm occurredin200809whenunemployedlabourforceincreased. Unemploymentrategoesdownwithage,itisobservedthatmostparticipationinthelabourforceisin age group 2050. This table confirms the finding that unemployment rate goes down with age and participationincreases(unlesstheageisabove50). In200506,theunemployedlabourforceinyouth(1525years)was1.2million,whichwas0.4million lowerthanthestockin200102.Ifthecurrentlevelofunemploymentprevailsforthenext20years,the stockofyouthunemployedin2030willbearound6million. Inreadingtable16.22wehavetomakeroomofthefactthatmostofthelabourforceisemployedin theruralareasthustheunemploymentfiguresaretobeseenasafractionofthewhole.Unemployed labour force is almost the same in both areas but unemployment rate is higher in urban areas. The differenceisquitelarge.
Table16.22:UnemployedLabourForcebyArea Years UnemployedLabour Force(Inmillions) UnemploymentRate(%) Total Rural Urban Total Rural Urban 199900 3.0 1.9 1.1 7.8 6.9 9.9 200102 3.4 2.1 1.3 8.2 7.5 9.8 200304 3.5 2.0 1.4 7.6 6.7 9.7 200506 3.1 1.8 1.2 6.2 5.3 8.0 200607 2.6 1.6 1.0 5.3 4.7 6.6 200708 2.6 1.7 0.9 5.2 4.7 8.3 200809 2.9 1.7 1.1 5.5 4.7 7.1 Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics,

16.18PolicyInitiatives a)EmploymentPromotionPolicies The policy focus of government is on creation of decent employment, and human resource development.Theimportanceofthefactcanbegaugedbytheinitiativestakenbythegovernmentsuch as National internship Program, Presidents Rozgar Program; credit is being provided for self employmentbyNationalBankofPakistan(NBP),enhancementofresidentialfacilitiesbyconstructionof one million housing units, doubling of lady health workers to cover Kachi Abadis, raising of minimum wage and pension of workers, restoration of Trade Unions. These steps are helpful in employment generationandhumanresourcedevelopment.Thespecificpoliciesareasfollows: b)AcceleratingInvestment&EconomicGrowth Economicgrowthhasdirectimplicationsforemployment.Productivityfosterscapitalintensiveactivities thuscausinglayoffintheshortrunbutinthelongrunduetoproductdiversificationandgreateroutput itcausesjobincrease.Thusgovernmentspriorityistotakethegrowthratetoanoptimumlevelforjob creation.Thereisadistinctionbetweenlowqualityjobscontributingtotheincreaseinthenumberof workingpoorandqualityjobssoemphasisisalsoonthisaspectofthelabourforce. 252

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c)MinimumWage Thegovernmenthasrecentlyannouncedaraiseof16%intheminimumwages.Thedegreetowhichthis increasegeneratesanacceptablelivingstandardforwageearnershastobeassessedandtheextentto whichithassharedthegrowthinGDPisalsotobegauged;itisatasktobeaccomplishedinfuturewage legislation. Furthermore, the minimum wage fixation will be subjected to a tripartite deliberation processatregularintervalstoprotectthelivingstandardsoftheworkersandwiderdispersalofgrowth benefits.Implementationlapseswillbefocuseduponthroughstreamliningtheinspectionsystem. d)InvestinginIncreasingWaterResources AgricultureisthelargestsectorofPakistanseconomyemployingnearly45.1percentofthecountrys workforcein200809.Morethantwothirdsofthecountyspopulationlivesinruralareasanddepends directlyorindirectlyonagriculturefortheirlivelihood.ThemajorconstraintinPakistansagriculturehas beenthelackofavailabilityofsufficientirrigationwater. e)CreditFacilityThroughSMEBank SME Bank was established to provide financial assistance and business support to small and medium enterprises.Upto31stDecember,2009SMEBankhasfinanced8,299SMEs,disbursedloansamounting toRs.9,510millionto40,891beneficiariesinthecountry. f)MicroCreditFacilitiesThroughKhushaliBank TheKhushaliBankwasestablishedtoprovideloansuptoRs.30,000/eachtounemployedpeopletoset uptheirownbusiness.Upto31stDecember,2009,theKhushhaliBank(KBL)disbursedloansamounting toRs.22,481millionto2,038,004beneficiaries. g)PresidentsRozgarSchemeByNationalBankOfPakistan(NBP) NationalBankofPakistanhasdevelopedafullrangeofproductsunderthepresidentsRozgarScheme withabrandnameofNBPKAROBAR.Underthisscheme,aloanuptosizeofRs.100,000/isgivenfor amaximumperiodoffiveyearswithagraceperiodofthreemonthsforestablishingthebusiness. h)PakistanSkillingProgramme NationalVocationalandTechnicalEducationCommission(NAVTEC)hasbeenestablishedwithaviewto overcoming lack of standardization, skill gaps, non availability of proper curricula. Poor quality of instructionalstaff,inadequateaccreditation/certification,poorinfrastructureandtoencourageprivate sector to enhance technical education and vocational training capacity and to bring harmony and develop linkage between technical education and vocational training. Being a regulatory body, this Commissionwillberesponsibleforlongtermplanninginthisparticularfield.Itwillalsoberesponsible for setting standards for formulating the syllabus, accreditation, certification and trade testing, etc. NAVTEC is giving Rs. 2000/ per month to each trainee during the training course. Presently, 1522 technical institutes with an enrollment of 314,188 are working in the country and providing technical skilltothelabourforce.Itisbeingplannedtoproduceonemillionskilledlabourperyear. i)SkillDevelopmentCouncils Inordertodevelopskilledlabourforceonmodernlines,LabourandManpowerDivisionhasestablished five Skill Development Councils (SDCs) one each at Islamabad, Karachi, Lahore, Peshawar and Quetta. TheSDCsassessthetrainingneedsoftheirgeographicalareas,prioritizethemonthebasisofmarket 253

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demand and facilitate training of workers through training providers in the public and private sector. TheseCouncilhavemetthediversifiedtrainingneedsoftheindustrialandcommercialsectorsandhave sofartrained46,674workers. j)OverseasEmployment Onefactorthatallowedcountriestoreducepovertyandtoimproveincomedistributiondespiteaweak growthemploymentlinkageisoverseasemployment,whichhasbeenanimportantfeatureofPakistans experience. In 2008, for example, the flow of workers abroad was over 400,000. This amounted to around 28 per cent of the total addition in the size of the domestic workforce between 200607 and 200708. In 2009, the flow of workers abroad reached 600,000 est. which is a major factor in the increaseinremittances. AseparateOverseasPakistaniDivisionhasbeenestablishedtofacilitateoverseasworkers.Community WelfareAttaches(CWAs)havebeendeputedinalltheEmbassiesofPakistan,locatedinmajorlabour importingcountries,toprotecttherightsofPakistaniworkers.Boostingofoverseasemploymentmay behelpfulinreducingpressureonjobmarket. MinistryofLabour,Manpower&OverseasPakistanisismakingeffortstoboostoverseasemployment. Inthisregard,MoUs/AgreementswithKuwiat,Malaysia,Korea,QatarandUAEhavebeensignedwhile MoUs/AgreementswithseveralothercountriesareunderProcess.Exportofmanpowerisundertaken byOverseasEmploymentPromoters(inPrivateSector)andOverseasEmploymentCorporation(inPublic Sector).MorethansixbillionUSdollarswouldbeearnedduringthenextbudgetyear.Theincreasein overseas migration is the result of revolutionary steps taken by the Government for the export of manpower.MoUhasbeensignedwithMalaysiaforrecruitmentofPakistaniworkerssoastoopennew jobopportunitiesforalargenumberofsemiskilledandunskilledworkers MoU in the field of manpower has also been signed between Pakistan and Korea. According to MoU, PakistanwillsenditsworkerstoSouthKoreaonregularbasis.FirstbatchofworkersleftforKoreaon 22nd April, 2008. MoU in the field of manpower has also been signed between Pakistan and the GovernmentofUnitedArabEmirates(U.A.E).MoUbetweenPakistanandLibyainthefieldofmanpower exporthasalsobeensignedrecently. k)InformationTechnology Information Technology has enormous potential to create jobs for the educated unemployed in the country.ThedevelopmentofITandTelecomsectorhascreatedenormousemploymentopportunities, directly or indirectly, for educated unemployed in a wide range of areas like call centres, telecom engineering telecom sales, customer services, finance and accounting etc. This is one of the fastest growingsectorsoftheeconomy.TheallocationofRs.3.30billionhasbeenretainedforthissector.This would further accelerate the activities in the next couple of years, creating more business and employmentopportunitiesinthecountry. l)LabourMarketInformationSystemandAnalysis AProjectLabourMarketInformationSystemandAnalysishasbeenlaunchedintheHRDWingofthe LabourandManpowerDivision.Theobjectiveoftheprojectistodevelopandconsolidatethecollection and usage of Labour Market Data in Pakistan. An analysis of data will be made using internationally recognized Key Indicators for Labour Market (KILMs). The system will yield regular statistics and informationaboutemployment,underemploymentandunemploymentatnational,localandregional 254

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levels.Thecoverageofvulnerablegroupsuchaswomenwillbeensured.Changesinsocioeconomicand educational characteristics of the employed and unemployed labour force, as well as, the changes in occupationalandsectoralcompositionoftheemployedwillalsobeanalyzed,enablingthepolicymakers to suggest policy initiatives for employment generation. Three reports under the project have been releasedwhichhavebeenappreciatedbyallconcernedatnational,aswellas,internationallevel m)NationalInternshipProgram ThefirstphaseofNationalInternshipProgram(NIP)hasbeencompleted.Underthefirstphase,25826 applicantswereofferedinternshipatFederal,ProvincialandDistrictGovernmentlevels.Secondphase of NIP was launched in February, 2008. A total of 71,915 applications were received. So far 21138 applications have been verified by HEC and NADRA and are being placed in Ministries, Divisions, DepartmentsandProvincialGovernmentsandatDistrictlevel.FinanceDivisionallocatedanamountof Rs.1650millionforpaymentofstipendtointerneesduringthefinancialyear200809. 16.19LabourPolicy2010:Salientfeatures In an effort to apply principles of social Justice in the world of work, the government announced a LabourPolicyon1stMay2010,withthefollowingrelevantfeatures: 1. Raising of Minimum Wages by 16% from Rs. 6000 of the previous year to Rs. 7000 per month. Paymentofwagesshouldbemadethroughcheques/banktransfersinallestablishmentsregistered underanylaw. 2. In order to monitor the implementation of labour laws pertaining to wage payments, working environment and time, Tripartite Monitoring Committees will be set up at district, province and federallevel. 3. LabourMarketinformationsystemwillbeestablishedthroughcreationofHumanResourceCentres atdifferentcities. 4. Contractemployeeswithinpublicsectorwillberegularized. 5. Initiation of a comprehensive social insurance scheme on self registration/voluntary basis for all workersandselfemployedintheeconomyforoldagebenefits. 6. Establishment of a Board to review the cases of workers dismissed under the Removal from services(SpecialPower)Ordinance2000. 7. Schools run by Workers Welfare Fund (WWF) are to introduce Matric Technical Scheme for skill development.

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