Document of IE cory The World Bank FOR OFFICIAL USE ONLY Report No. 3105a-PAK STAFF APPRAISAL REPORT PAKISTAN FIFTH EDUCATION (VOCATIONAL TRAINING) PROJECT February 10, 1981 Projects Department South Asia Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENT Currency Unit = Pakistan Rupee (Rs) US$1 = Rs 9.90 Rs 1 = US$0.101 FISCAL YEAR July 1 - June 30 SCHOOL YEAR March to February GLOSSARY ATC - Apprentice Training Center CDWP - Central Development Working Party ECNEC - Executive Committee of the National Economic Council FTB - Federal Training Board GVI - Government Vocational Institute ILO - International Labor Organization MOE - Ministry of Education MOLM - Ministry of Labor, Manpower and Overseas Paskistanis MES - Modules of Employable Skills MTS - Modules for Training Supervisors NTB - National Training Board NTDI - National Training Development Institute NPS - National Pay Scales OWF - Overseas Workers Foundation PC-1 - Planning Commission Form 1 PTB - Provincial Training Board TTC - Technical Training Center UNDP - United Nations Development Program PAKISTAN FOR OFFICIAL USE ONLY FIFTH EDUCATION (VOCATIONAL TRAINING) PROJECT TABLE OF CONTENTS Page No. BASIC DATA I. MANPOWER IMPLICATIONS OF THE DEVELOPMENT STRATEGY 1 Economic Background ........ ........................... 1 Manpower Demand and Supply ............................ 2 Foreign Manpower Demand ............................... 3 Imbalance ............................................. 6 II. VOCATIONAL TRAINING IN PAKISTAN ....................... 6 The Existing Vocational Training System .... ........... 6 Financing of Vocational Training ...................... 7 Issues in Vocational Training ........................ 9 A. Relevance to the Needs of the Economy .... ......... 9 B. Low Skill Level of Trainees from Training Centers ......... ................................ 9 C. Low Output from Existing Institutions .... ......... 11 D. Poor Coordination ..... . . ...................... 12 Government Programs and Policies ......... .. ........... 12 External Financing of Vocational Training ............. 14 Bank Group Participation in Education and Training ..... 15 III. THE PROJECT ........................................... 17 Project Formulation ................................... 17 Objectives ............................................ 17 Project Components .................................... 18 A. National Vocational Training Management System .... 18 - Secretariat of the National Training Board (NTB) .... 18 - Provincial Training Boards (PTBs) ........ .. ......... 19 - National Training Development Institute (NTDI) ...... 19 B. Industrial Training .............. .. ............... 20 - Training Centers ................ .. .................. 20 - Instructor Training ............... .. ................ 23 - In-Plant Training ................ .. ................. 23 - Evaluation ..................... ..................... 24 - Future Education Projects ............ .. ............. 24 - Technical Assistance Program .......... .. ............ 24 This report is based on the findings of an appraisal mission to Pakistan during November 1979 composed of Messrs. R. Hemingway (Vocational Trainer and Mission Leader), R. Cambridge (Economist) and V. Demetriou (Architect) and a reappraisal mission during June 1980 composed of Messrs. R. Cambridge (Economist and Mission Leader), V. Demetriou (Architect) and R. Byron (Technical Education Specialist/ Consultant). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. - ii- Table of Contents (cont.) Page No. IV. PROJECT COST AND FINANCING ............................ 25 Project Cost .......................................... 25 - Customs Duties and Taxes ............................ 28 - Contingency Allowances .............................. 29 - Foreign Exchange Component .......................... 29 Financial Plan ........................................ 29 Recurrent Cost Implications ...................... 30 V. PROJECT IMPLEMENTATION ................................ 32 Implementation ........................... ........ 32 - Administration/Organization ......................... 32 - Duties and Responsibilities of the National Training Bureau (NTB Secretariat) .... ............. 33 - Architectural Services and Designs .... .............. 34 - IDA Review and Approval ............................. 34 - Construction ........................................ 34 - Sites ............ ................................... 35 Procurement .............. 35 Local Competitive Bidding ............................. 35 International Competitive Bidding (ICB) .... ........... 35 Prudent Shopping (Local and International) .... ........ 35 Association Review .................................... 36 Disbursements ......... ................................ 36 - Documentation ....................................... 36 - Project Accounts and Audits ......................... 36 VI. BENEFITS AND RISKS ............................ 37 Benefits ............................ 37 Risks ................................................. 38 VII. RECOMMENDATIONS ....................................... 39 ANNEXES 1. Comparative Education Indicators 2. Organization of the Ministry of Labor, Manpower and Overseas Pakistanis 3. Summary of Estimated Project Costs 4. Contingency Allowances 5. National Training Management System: Functional Responsibilities of the National Training Board (NTB), Provincial Training Boards (PTBs) and the National Training Development Institute (NTDI). 6. Implementation Schedules 7. Forecast of Expenditures and Disbursements 8. Selected Documents and Data available in the Project File MAP Map of Pakistan (showing project institutions) - iii1 - LIST OF TABLES 1.1 Pakistan: Estimated Annual Domestic Employment Requirements 1977-1985 1.2 Foreign Employment by Occupation and Remittances 1974-1979 1.3 Estimated Annual Demand (Domestic & Foreign) for Pakistani Skilled and Semi-skilled Labor 2.1 Output of Trainees from the Formal Government Training System by Province 2.2 Expenditure on Education and Training 1978-1979 3.1 Staff Recruitment Plan for Training Boards and the National Training Development Institute 3.2 Recruitment Schedule for Additional Instructors 4.1 Summary of Costs by Project Team 4.2 Project Costs by Category of Expenditure 4.3 Area and Cost Per Place 4.4 Price Escalation Estimates 4.5 Financial Plan 4.6 Annual Operating Costs of Project Institutions 1979, 1985 6.1 Estimated Annual Output from Project Institutions and Programs by Province I A. PAKISTAN FIFTH EDUCATION (VOCATIONAL TRAINING) PROJECT BASIC DATA Literacy Rate (1978) 24% Million % Labor Force (1978) Agriculture 12.3 57 Industry /a 4.9 23 Services and Others 4.5 20 Education and Training Institutions Enrollments (Thousands) (1978) Primary Schools (Grades 1-5) 5,927 Middle Schools (Grades 6-8) 1,293 High Schools (Grades 9-10) 513 Intermediate Level: Colleges (Grades 11-12) 190 Degree (Grades 13-14) 64 Postgraduate & Degree Colleges (Grade 15+) 22 Vocational Schools (excluding teacher training) 34 Teacher Training (Grade 11-15) 25 Professional Colleges and Universities (Grade 11-14+) 50 Education Finance (1978) Total Education expenditures by Government (Rs million) ...... 3,280 As % of total expenditures by Government ....................... 7.5% As % of GNP . ................................................... 1.8% Recurrent education expenditures by Government (Rs million) .. 2,506 As % of total recurrent expenditures by Government .... ......... 9.0% Expenditures on vocational training (Rs million) .... ........... 180 As % of total education expenditure ........................... 5.0% UNIT COST US$ per trainee hour (average) ..... .................. 0.17 /a Includes mining, manufacturing, construction and utilities. : : : : g . 0 [: t: : : : : PAKISTAN FIFTH EDUCATION (VOCATIONAL TRAINING) PROJECT I. MANPOWER IMPLICATIONS OF THE DEVELOPMENT STRATEGY Economic Background 1.01 Over the past three years, Pakistan has witnessed a significant economic recovery: GDP growth during FY78 and FY79 averaged over 6% p.a. and a similar rate of growth is likely to be attained in FY80. This growth has been accompanied by a recovery in agricultural and industrial production well above the rate of population growth currently averaging 3% p.a., and by a rapid growth in exports. Exports increased in real terms by 11% in FY78 and by 20% in FY79; during FY80 a further 44% increase in current prices over the FY79 level is expected. Value added in agriculture may rise by 6-7% this year following increases of 2.5% in FY78 and 4.2% in FY79, and in industry by 4-5% this year following 9.2% growth in FY78 and 4.2% in FY79. This performance contrasts markedly with the economic stagnation of the early and mid 1970s, when the growth of GDP averaged only 3-4% and goods production 1.1% p.a., and export growth was negligible. 1.02 The recovery in the economy since 1977 has been aided by several factors, including favorable weather, improved foreign demand for Pakistan's exports and higher domestic demand associated with better crops, rising rural incomes and workers' remittances from the Middle East. Various policy changes introduced by the Government have also contributed to the recovery. 1.03 In the industrial sector, the policies pursued in the early and mid 1970s of extensive nationalizations, tight restrictions on the private sector, and rapid expansion of the public sector to spearhead industrial investment and growth have been gradually reversed. Most agricultural processing and some industrial units have been denationalized; constitutional safeguards have been provided to private industry against further arbitrary Government acqui- sitions; and the areas open to the private sector have been widened. A wide range of incentives including tax holidays, excise and import duty concessions, easier access to imported raw materials, concessionary credit and income tax provisions, and direct cash rebates have been granted to encourage private investment and exports. The Government has also embarked on the difficult process of reforming the public sector which has been plagued by low effi- ciency and low profits. 1.04 Despite the recent improvements in output and exports, and in the overall management of the economy, financial difficulties persist. To a considerable extent these difficulties reflect continuing pressures on re- sources, despite rapid output growth and the Government's efforts to restrain public investment. These pressures have led to substantial imbalances between savings and investments and between exports and imports--imbalances which have manifested themselves in sizable budgetary and balance of payments deficits. The balance of payments presents the Pakistan Government with its most intrac- table problem. With imports roughly double the level of exports, exports must rise at a substantially faster rate than imports simply to prevent a worsening in the sizable foreign trade deficit - a task made even more difficult by the sharp increase in the petroleum import bill. The current account deficit is - 2- expected to remain around US$1,010 million or 4% of GNP in FY198Q. The Government intends to meet this problem, by mounting a major effort of import substitution in foodgrains, fertilizers and energy. It also intends to ex- pand manufacturing particularly in industries in which Pakistan has a compara- tive advantage. 1.05 Industry contributes about 15% of GDP and during much of the 1950s and 1960s provided a major stimulus to growth. Growth rates in manufacturing production, though recently better, remain well below those attained in the 1960s. The textile industry, in particular, which accounts for about 40% of the value added in large-scale industry, has suffered from problems of ineffi- ciency, excess capacity and a lack of competitiveness in foreign markets, while manufacturing growth generally has been affected by the unsatisfactory perfor- mance of public sector enterprises. To maintain the momentum of the past three years (para 1.01) the industrial sector will require, in addition to inputs of capital and technology, an increase in labor productivity and an increased supply of skilled manpower. Manpower Demand and Supply 1.06 At present there is a shortage of skilled and semi-skilled labor, largely because opportunities for training and upgrading are limited, and the continuing exodus of skilled workers to the Middle East. The shortage of skilled workers in the public sector is aggravated further because wages are lower relative to private industry. It will therefore be necessary to increase the supply and upgrade the quality of skilled and semi-skilled labor to support the expansion and diversification of industry so necessary to Pakistan's industrial development plans (para 1.03), and thereby contribute in overcoming its persistent balance of payment problems. 1.07 Annual estimates for new employment in the formal sector for the period 1978 - 1985 are provided in Table 1.1. Available data on employment and wages are inadequate and do not permit satisfactory forecasts of manpower requirements. These projections are therefore intended to indicate only general orders of magnitude. To be conservative, they are based on lower sectoral growth rates than those postulated in the Fifth Plan, (1978 - 1983), and are considered reasonable (GDP would grow at 5% rather than 7.5%). 1.08 Table 1.1 shows also the employment structure by sector in 1978. The sectoral composition of employed persons has changed little since then. In 1978, agricultural employees comprised 57% of the labor force, while industrial sector employment (manufacturing, construction, utilities, and transport) accounted for about 23% of the labor force. 1.09 The projection of Pakistan's annual domestic requirements for skilled and semi-skilled manpower by sector is based on employment elasti- cities which are consistent with Bank projections for growth and sectoral value added over the period 1978 - 1985. Annual expansion rates used were 3% for agriculture, 6.5% for manufacturing and 5% for other sectors. For replacement of persons leaving the labor force, an annual figure of 1.6% was used for the manufacturing, construction, transport and utilities sectors. These projections which result in an annual increase of about 3% per annum in employment, represent the economic demand for new and replacement personnel - 3 - Table 1.1 PAIKISTI: ESTIMATED A:r`t'AI EMPLOYsENT REOUTREAENTS 1977 - 1985 ___________.______ Annual Additional Enplovment bv Category cJ-________,_______ Esctimated Actual Employment Average Professional Clerks Semi- Employ ent Percentage Denand Annual and and Skilled Skilled Unskilled Service Sector 1977 a/ Distribution ______ I-ncrease Technical Administrators Sales Workers Workers Workers Workers Agriculture 12,360,000 57.0 14,690,000 291,250 290 580 1,170 14,270 124,950 146,790 3,200 Manufacturing 2,920,000 13.0 3,720,000 100,000 1,600 2,600 7,900 17,900 43,400 26,000 1,100 Utilities 110,000 1.0 140,000 3,750 110 90 560 290 1,410 1,130 150 Construction 900,000 4.0 1,090,000 23,750 570 360 450 2,210 11,040 8,860 260 Transport 1,020,000 5.0 1,300,000 35,000 2,630 1,650 12,320 7,810 490 3,260 7,180 Trade and Services 4,530,000 20.0 5,750,000 1'2,000 16,870 13,070 49,550 910 1.820 6,540 63,230 Total: 21,840,000 26,690,000 605,750 43,390 183,110 192,580 - -S- Occupational Structure a/ …._________________-______(percentage breakdcvn by sector) ---------------------- Agriculture 0.1 0.2 0.4 4.9 42.9 50.4 1.1 Manufacturing 1.6 2.6 7.9 17.9 43.4 26.0 1.1 Utilities 3.0 2.5 15.0 7.6 37.7 30.2 4.0 Constructioa 2.4 1.5 1.9 9.3 46.5 37.3 1.1 Transport 7.5 3.0 35.2 22.3 1.4 9.3 20.5 Other Services 11.1 8.6 32.6 0.6 1.2 4.3 41.6 a/ Source: Pakistan Labor Force Survey (1974 - 1975). b/ IDA mission estimates (figures rounded). c/ Figures rownded. only. However, an additional 450,000 persons would enter the labor force each year, but most of these would be absorbed I/ into informal employment mainly as unskilled and service workers in agriculture (about 65%) and service workers (35%). Moreover, this does, not take into account the exodus of manpower mainly to the Middle East and Gulf states. 1.10 In sum, Pakistan's annual domestic requirement for skilled workers is estimated at about 43,000, of which, two thirds are non-agricultural. The total annual requirement for skilled and semi-skilled workers, including the agricultural sector, is estimated at around 226,000. The annual requirement in the manufacturing, construction, utilities and transport sectors is estimated at 84,000 skilled and semi-skilled workers per year. This com- pares with an annual output of 10,000 skilled workers from Government-operated formal training programs (Table 2.1). Foreign Manpower Demand 1.11 The estimated deficit of skilled/semi-skilled labor (domestic demand-domestic supply) is compounded by the emigration of workers mainly to the Middle East (paragraph 1.06). Table 1.2 shows the numbers of skilled/ semi-skilled workers by occupation who have emigrated from Pakistan during the period 1974-1979. Despite domestic shortages of skilled manpower, the Government has so far not attempted to limit the export of manpower, because of the practical difficulties of keeping people in the country against their 1/ Derived from Fifth Five-Year Plan. will and the benefits of this activity. The most important benefit is remit- tances, which constitute the largest source of foreign exchange earnings in Pakistan. In 1979, remittances from Pakistani workers reached US$1,700 million and this helped to alleviate pressure on the external account-. While the short-term benefits of this export of manpower are obvious and relatively easy to quantify in financial terms, the short- and longer-term costs to the economy of reducing further the country's already severely limited stock of skilled and semi-skilled manpower, are difficult to estimate. The Government and IDA are currently undertaking a study of labor migration from Pakistan with a view to assessing its costs and benefits and providing a basis for specific manpower export and development policies. 1.12 Table 1.2 also shows that the skilled workers' share of total emigra- tion has declined from 70% in 1974, to about 46% of total emigration in 1979. Since the foreign demand for Pakistani labor is mainly linked to growth in the oil-based economies of the Middle East, it is assumed that the composition of labor demand will continue to change, reflecting changes in these economies. By the mid- and late-1980s, the labor demand in the oil exporting countries is likely to shift towards highly-skilled technical manpower as investment programs in infrastructure, (which require a relatively higher unskilled labor component), give way to investments in services and technologically-advanced manufacturing. 1.13 The order-of-magnitude estimates in Table 1.3 are therefore conserv- ative, based on the assumption that the rapid increase in manpower exports (skilled/semi-skilled workers) over the past five years (about 3,500 per month) will not be sustained. It also assumes that by the mid-1980s, the demand for technical labor will be higher than for skilled/semi-skilled labor. Table 1.2: FOREIGN EMPLOYMENT BY OCCUPATION AND REMITTANCES (1974 - 1979) Occupation 1974 1975 1976 1977 1978 1979 Masons 1,166 1,789 3,535 6,841 12,698 11,323 Carpenters 924 @,642 4,364 6,771 11,353 9,095 Steel Erectors - (452 1,617 4,390 6,423 4,507 Mechanics 455 1,221 1,205 2,044 4,764 3,953 Electricians 254 723 836 1,664 4,382 3,555 Typists 327 571 1,192 1,109 2,011 1,467 Painters 87 133 334 1,427 2,315 1,991 Welders 442 663 691 1,039 1,930 924 Plumbers 162 426 413 884 2,070 1,645 Cooks 159 314 452 1,127 1,448 1,038 Waiters 116 146 340 203 430 289 Cable Jointers - 24 431 241 155 186 Stenographers 94 74 141 257 - 37 Others 7,383 6,280 10,662 13,049 17,332 13,774 Total 11,569 15,458 26,213 41,046 67,311 53,784 Skilled artisans as percentage of total emigration 70 67 63 51 52 46 Remittances (US$ million) 213 235 578 1,227 1,395 1,725 Source: Office of Director-General, Bureau of Emigration - June 1980. Table 1.3: ESTIMATED ANNUAL DEMAND (DOMESTIC & FOREIGN) FOR PAKISTANI SKILLED/SEMI-SKILLED LABOR (By Sector 1985) Sector Domestic Foreign Total Manufacturing/Industrial 61,000 10,000 71,000 Construction 13,000 3,000 16,000 Transportation 8,000 2,500 /a 10,500 Utilities 2,000 1,500 3,500 Total 84,000 17,000 101,000 /a Includes vehicle drivers and mechanics. -6- Imbalance 1.14 The annual demand for skilled/semi-skilled workers (domestic and foreign) is estimated at about 100,000. Since the output from formal Govern- ment vocational training programs is around 10,000, this leaves a deficit of 90,000 workers. However, in response to this demand, numerous private esta- blishments have been opened. In the Punjab and Sind Provinces, there are over 100 private institutions accredited by the Provincial Boards of Technical Education. These institutions, and more than 300 unaccredited private insti- tutions, have an estimated annual output of around 20,000 skilled/semi-skilled workers. When coupled with the training conducted in the informal sector, it is estimated that an additional 40,000 semi-skilled workers enter the labor force annually. This leaves an annual imbalance of approximately 50,000 skilled/semi-skilled workers. It should be noted that since the quality of training is low at most private and informal sector establishments, trainees normally enter the labor force as semi-skilled workers. 1.15 The shortage of skilled labor is expected to continue to impede Pakistan's development plans. It will continue to hinder the achievement of production targets in the industrial sector, while limiting productivity gains achieved by increasing other inputs to the production process. The shortage of skilled labor will also make it difficult for Pakistan to capitalize fully on the benefits of exDorting manpower to the Middle East. On the domestic side, the estimated annual demand of about 84,000 skilled/semi-skilled workers may be reduced by the return of workers from the Middle East. Similarly, in the foreign market, increased competition from other labor exporting countries, and a change in development priorities and employment opportunities of some Middle Eastern states may lessen the demand for Pakistani labor. Nonetheless, Pakistan's overall development, and its industrial development in particular, will necessitate a much greater supply of skilled manpower than the present output capacity of its training institutions. Pakistan, therefore, should create the institutions and programs needed to meet short- and medium-term skilled manpower requirements. II. VOCATIONAL TRAINING IN PAKISTAN The Existing Vocational Training System 2.01 Responsibility for the administration of industrial vocational train- ing in Pakistan is divided between the respective Provinces and the Federal Government. At the provincial level, the Labor Departments operate (a) 10 Technical Training Centers (TTCs) offering two-year full-time courses in 22 trades; (b) in the Punjab and Baluchistan, 15 Government Vocational Institutes (GVIs) offering two-year full-time courses in 16 Trades 1/ and; (c) supervise 297 industrial establishments which operate apprenticeship programs in 62 1/ In the Punjab and Baluchistan, the administration of the GVIs was recently transferred from the Education Departments to the Labor Depart- ments. In Sind and NWFP, they are still administered by the Education Departments. trades. The Education Departments in conjunction with the Boards of Technical Education operate (a) in the Sind and NWFP, nine Government Vocational Insti- tutes (GVIs); and (b) six Polytechnics which offer industrial vocational courses in 16 trades during a second shift. The Boards of Technical Education also regulate through accreditation, the large number of private training schools which constitute a significant part of the manpower training system. On the federal level, the Ministry of Labor, Manpower and Overseas Pakistanis through its attached agencies operates two programs. The National Training Bureau runs the "Crash Program" of intensive short courses in 30 centers, while the Overseas Workers Foundation runs short courses for potential emi- grants in 21 centers. Both programs utilize existing public and private training facilities during second shifts. 2.02 The TTCs and the GVIs operate the regular one-and-a-half to two- year full-time course and differ mainly in the target population which they serve. The TTCs aim at serving adults and drop-outs from the educational system aged 16 - 25 years, and apprentices. Secondary schools in Pakistan have not attempted occupational training and accordingly, GVIs have consti- tuted the industrial education track for students wishing to pursue further education in industrial and related fields. They provide 18 - 24 month pro- grams, the duration depending upon the selected field of training for students over the age of 16 and with eight to ten years of schooling. The program combines academic and skills training, and has traditionally been regarded as leading to further education, rather than employment. Apprentices and voca- tional trainees are not differentiated with the exception that registered apprentices are supposed to be supervised on the job, and their training fees are paid by employers. Consequently, apprentices and vocational trainees may be found in attendance at GVIs, TTCs and the newer Apprentice Training Centers (ATCs). The trend is toward the intensive sandwich-type courses usually associated with apprentice training. 2.03 Table 2.1 shows that in 1979, the total output from the formal vocational training system was just over 10,000. Of these, 400 were trained at the GVIs; 1,300 in the TTCs; 2,000 by the Overseas Workers' Foundation; 1,250 under apprenticeship schemes, and over 5,000 by the Crash Training Pro- gram operated by the Manpower Division of the Ministry of Labor and Manpower. Financing of Vocational Training 2.04 By developing country standards, Pakistan spends only a small share of its resources on education and training. In 1978, expenditure on education amounted to 7.5% of total public expenditures by comparison with a range of 10%-21% in seven other Asian countries (see Comparative Education Indicators-- Annex 1). For FY1978, budgeted recurrent expenditure on education and train- ing (provincial and federal) amounted to Rs 2,506 million, or 9.0% of the country's current budget expenditures and 1.7% of GDP. Development expendi- tures totalled Rs 772 million in 1979 and accounted for about 4% of the Annual Development Program. About 95% of education expenditure is allocated to the Ministry of Education. Expenditure on vocational technical/training has always accounted for less than 6% of educational expenditures (Table 2.2). The low expenditure on vocational training is confirmed by very low trainee costs per hour which vary from about US$0.15 to US$0.27, as compared to a range of US$0.50-US$1.00, typical of developing countries. The low costs -8- table 2.1 m w of 3AIU MM.01 FM . O0 mr os sue ST Oeuresa Vkare Govera Vo.etlb ll uAcel wan lcundtidttu Zamutr.Tl Number outOdput * NUM au-tpu, I n output Nutmbag Output Nbtput of ef ff of of of Of of of of of of rovineo TastLtuttonA Stne.m istitutione Irminot Canton Trainees Istabliahbmrt Trainee. Istehlislntu Trainee. o tablielmeo TSrainoes ajab 13 1" 6 807 20 1,600 203 600 .25 1,956 257 5,113 Sid 6 175 2 388 1 36 73 S66 6 2,104 a8 3.289 N.Y.t.P. 5 78 2 106 10 364 21 70 6 313 40 1,133 Beluobeta _- - _ * 4995 499 Totals 34 401 10 1,303 21 2,000 237 1,256 30 5,074 390 10,034 _ - _ _ _ _ - _ - _ _ _ - / In pjab amd saluchta thb adaietrutin of the MU boa bem traae fre do tC cctia ep-t t to the L.or i par2:. In the oter provtoess, the arm administred by the IUuation Dpartments. b/ The industial Zstablishunts we edtinjeted by the lro,insll Labor D_arubut radier the Apprzeticsahip Oradiamo 1962. i The 'Crash Training Progrm' end the Oerae" WoxM s Foundation Trainin fiogian e adtintaed by the oLUatiy of Labo: wd Manpow by wtlLsiag thrno iStIaw PolytCr Sch0ool, ezieti m itutee of the Princioadl @Overuta I eaftenooo hifct and #Om facilities is the Private Sector. Eries NPa_r Diwiaioat WMnistr of labor and Muanpw. Table 2.2: EXPENDITURE ON EDUCATION AND TRAINING (1978/79) Development Recurrent Total Subsector Rs mln % Rs mln % Rs mln % Primary 206 27 972 39 1,178 36 Secondary 89 11 652 26 741 23 Vocational /a 66 9 114 4 180 5 Tertiary 141 18 526 21 667 20 Other /b 272 35 242 10 514 16 Total 774 100 2,506 100 3,280 100 /a Includes Departments of Education and Labor expenditures on vocational and technician level programs for both men and women. /b Includes Department of Education expenditures on teacher training, sports and culture, scholarships and miscel- laneous. Source: "The Fifth Plan (1978-1983), Education and Training" Pakistan Planning Commission, June 1978. - 9 - are due mainly to low expenditures on the wages of trainees and of teaching materials. Increased expenditure on training will be required to produce qualified skilled workers in sufficient quantities to meet industrial needs. However, in view of the continuing budgetary constraints, cost-efficient training alternatives should be explored and in-plant training encouraged as under the proposed project-. Issues in Vocational Training 2.05 The main issues in vocational training are its relevance to the needs of the economy, the poor quality and low quantity of output from exist- ing institutions and the lack of a coordinated and integrated vocational training system. A. Relevance to the Needs of the Economy (i) Lack of Manpower Assessment and Strategy: Provincial training plans have been made on an ad hoc basis without prior assessment of the labor market, including the skilled manpower needs of public and private enterprises. In the absence of labor market analysis and forecasts of skilled labor requirements as a basis for planning, training programs have not provided timely response to developing national manpower needs. (ii) Lack of In-Plant Training: Few employers have established in-plant upgrading and updating programs as a means to increase the productiv- ity of workers through training. The Apprenticeship Training Ordinance 1962, intended to promote this activity is not enforceable, as evidenced by the fact that in 1979 of some 6,000 enterprises employing more than 50 workers and therefore subject to the training provisions of the Ordinance, only 279 participated, with a total output of only 1,250 skilled workers. (iii) Limited Involvement of Employers in Vocational Training: Training institutions and government departments have failed to involve employers in the development and continuous updating of institutional training programs, feed-back on the effectiveness of training, and forecasts of employment opportunities. Employers have not been adequately involved in the evaluation of institutional training programs or in the development of in-plant training programs linking training insti- tutions and industries. B. Low Skill Level of Trainees from Training Institutions: Five principal factors contribute to the low skill levels acquired by graduates of training institutions. They are: - 10 - (i) Insufficient Consumable Training Materials: The low skill levels among graduates of many TTCs, and almost all GVIs, are partly attributable to an inadequate supply of consumable training materials. Without materials, instructors substitute classroom periods for practical workshop sessions, thus denying trainees the practical experience necessary for skill development. The training materials allocation per trainee for GVIs averages Rs 192 per year and for TTCs about Rs 560 per year while Rs 1,200 per year would be a reasonable average allocation. To achieve skill levels adequate for job entry in short-term courses, the specified practical workshop sessions (about 70% - 80% of total time) must be observed, and this would necessitate an increased supply of consumable mate- rials and an adequate budget to keep the institutions appropriately stocked with them. (ii) Inadequate Availability of Equipment: Much of the equipment in the training centers, particularly the GVIs, is either obsolete or requires major repair. As enrollment is close to capacity (in the TTCs), equipment time per trainee is drastically curtailed, adversely affecting individual trainee skill development. (iii) Lack of Trade Tests and Standards: National trade testing procedures have not been developed in the absence of a central institution to establish training standards and to design, produce and update teaching materials. The Punjab Government, with the assistance of experts from the Federal Republic of Germany, has developed a trade testing procedure in ten mechanical and electrical trades and the National Training Bureau, with the assistance of ILO, is working on standards for the construction trades. There is a need to consolidate these efforts and to establish standards in an extended range of occupations. Implementation of national training standards will reduce the present disparities in skill levels, assist employers in recruiting workers and promote the establishment of wage scales commensurate with skill levels. (iv) Lack of Qualified Instructors: Also affecting the quality of training are the uneven skill levels of administrative and instructional staffs. With few exceptions, this is due to poor motivation resulting from low salary levels. Instruc- tors in the GVIs receive an average of 2% less than the entry level wages of equivalent skilled workers in industry, while the instructors in the TTCs are - 11 - not much better off receiving about 14% more than GVI instructors. There are, therefore, many vacancies in the GVIs and the instructors who remain are generally unskilled, have no industrial experience and are unable to develop trainees who are acceptable to industry. There is an urgent need to rationalize the salary scales of instructors throughout the system and to relate these scales to proven skill levels, industrial experience and appropriate instructor training. (v) Lack of Supervision of Training Centers: There is evidence that training programs lack another essential ingredient of success, namely, strong leader- ship through supervision at each level of instruction and administration. Supervisory grades for instructors have been introduced but are used as salary inducements rather than as a means to improve the quality of instruction through supervision. The result has been deteriorating standards of performance of instructors and administrators. C. Low Output from Existing Institutions (i) Single shift operations contribute to inadequate output from existing training institutions. Further- more, in 1979, only 50% of the places available in the GVIs were filled because of a lack of instructors and consumable materials with which to conduct practical courses. By introducing second and third shifts and improving the quality of instruction, output from both the GVIs and TTCs could be substan- tially increased. (ii) Existing training programs have been standardized at two years' duration primarily to permit the inclusion of academic subjects for the benefit of students who may later wish to proceed to further education. The result has been overly protracted and costly programs which tend to become progressively less practical and more academic. Economies can be achieved through shorter programs by recruiting candidates who already hold the requisite general education requirements, and through the introduction of intensive skill training. Moreover, the duration of courses should be appropriate to the particular occupation and directed to job entry qualifications. Training to full competency would continue on the job and through periodic or evening upgrading courses. The duration of the pre-employment training accordingly might vary from one to twelve months or an average of six months depending upon the skill and technical knowledge content of the occupa- tion and local job entry requirements. - 12 - D. Poor Coordination The industrial manpower training system (paragraph 2.01- 2.02) is an aggregation of several virtually parallel systems of institutions and programs. The complexity of the system and the overlapping training functions may be attributed to the fact that under the constitution, vocational training is a concurrent function of the Federal and Provincial Govern- ments. Consequently, the Federal Training Board (FTB), an advisory body, which was established in 1976 to coordinate vocational training with provincial training authorities and employers, has proven ineffective up to now. 1/ The Board has lacked authority and has been unable to establish adequate linkages with the Ministry of Education, Provincial Governments and employers. It failed to establish coordina- tion in such aspects as training needs assessment, prepara- tion of annual training plans, course and curriculum development, training materials production, standards and trade testing, staff training and the placement and follow- up of graduates. The National Training Bureau acts as the secretariat of FTB. Government Programs and Policies 2.06 In early 1978, in order to overcome the problems discussed above (para 2.05), the Government, with the assistance of ILO and IDA, embarked on a study of the vocational training system. The outcome was a Vocational Training Plan (VTP) for the period 1978 - 1983. The major problems confronting the sys- tem were highlighted and strategies for correcting deficiencies and promoting training outlined. The training strategies proposed in the Training Plan con- sisted of the following: (a) restructuring of the national training management system to: (i) establish strong linkages with the Provincial Governments and employers; (ii) encompass rural and women's training; and (iii) provide channels for the increased flow of training funds; (b) reorganizing and expanding the training delivery system with the main emphasis on increasing the utilization of existing facilities through double shift operation and the adoption of short courses; and 1/ With the enactment of the National Manpower Ordinance (see para 2.07) in March 1980, the role and authority of the FTB has been significantly strengthened. - 13 - (c) improving the skill level of trainees through the training and upgrading of instructors and increasing the supply of training materials. 2.07 In March 1980, the Government acting on the recommendations included in the VTP, enacted the National Manpower Ordinance. The new management structure enabled by the ordinance has the potential to overcome the difficul- ties that have hampered vocational training in the past and includes a National Training Board (NTB) and Provincial Training Boards (PTBs). The Boards are broadly representative of Federal ministries and Provincial departments as the case may be, and of industry, labor and the private training organizations. The NTB would be served by a Secretariat, and a National Training Development Institute (NTDI) and would administer the National Training Board Fund. The new national management training system is described in paragraphs 3.04-3.06. 2.08 In addition to reorganizing the management of vocational training the Government has decided to implement the following in the 1978-83 period in its pursuit of VTP objectives: (a) use a second shift in public, and some private institutions, to produce, through the use of the modular and accelerated training system, an additional 5,000 semi-skilled workers per year under the so-called "Crash Program"; (b) construct seven new Polytrade Centers for the Overseas Workers Foundation in order to train another 10,000 workers per year; (c) expand vocational training facilities, including the esta- blishment of eight new TTCs; provide additional equipment for four existing TTCs and re-equip all (24) GVIs; (d) expand in-plant training through a financial incentive sys- tem to employers including infrastructure grants, capitation fees and the subsidization of apprentice wages; (e) expand rural artisan training through the establishment of rural training/production centers; and (g) expand women's training through support to training/produc- tion centers for women in the Punjab and Sind Provinces. 2.09 The "Crash Program" (para 2.08(a)) is now operational, and four of the Overseas Workers Foundation Polytrade Centers (para 2.08(b)) have been completed. Also, the government signed an agreement with UNDP/ILO in 1978 which provides assistance for the expansion and upgrading of training facili- ties (para 2.08(c)), instructor training, curriculum development and develop- ment of trade standards and tests (para 2.11). Under the project appraised in this report, these activities would continue and be expanded where necessary, to meet the requirements of a larger project. An in-plant/supervisory train- ing program would also be undertaken. - 14 - External Financing of Vocational Training 2.10 Since 1967, the Government has received technical assistance from multilateral and bilateral sources for vocational training. The Swedish Government assisted in the development of the Swedish-Pakistan Institute of Technology which operates evening programs for vocational training, and the Netherlands Government provided US$0.75 million for the Pak-Netherlands Training Center at Multan. The Federal Republic of Germany's assistance has been the most extensive; in addition to US$2 million in equipment for the TTCs at Ghulberg and Moghulpura, the German Government has assisted in the establishment of an Apprenticeship Training Wing and a Development Cell in the Punjab Labor Department. The development of these two institutions involved over 35 man-years of German technical assistance and 40 fellowships (1-2 years each) for Pakistanis. 2.11 UNDP/ILO have also assisted the Government. They provided assis- tance for the preparation of the Vocational Training Plan and since 1978, UNDP/ILO have been financing services of international experts, spares and equipment under the Federal Program for Skill Development (US$1.55 million). The principal objective of this project is the development of necessary legislation and regulations required for the introduction of efficient and uniform national skill training programs. This objective has been achieved with the enactment of the National Manpower Ordinance of March 1980 (para 2.07). Other project activities have included: (a) the revision and expansion of the existing national classi- fication of occupations; (b) the formulation of nationally-recognized and accepted Trade Standards; (c) determination of the content of training programs and deve- lopment of trade standards utilizing Modules of Employable Skills (MES); (d) upgrading the equipment of nine operational TTCs and provid- ing new equipment for two newly established TTCs in Quetta (six Trades) and Sukkur (four Trades). (e) preparation of training programs for instructors and the organization of staff training courses in selected trade areas at chosen TTCs; and (f) development of a nationally-recognized skill testing sys- tem through the determination of methods for skill test- ing; the development of one pilot skill Testing Center in each province, and the introduction of uniform trade/skill certificates. 2.12 The project is administered by the National Training Bureau and has been in full operation for two years. It has fallen short of its objectives, - 15 - mainly because of the inadequate operational budget allocated by the Govern- ment. Unfortunately, very few members of the Training Bureau's staff have had previous experience in vocational training. As a consequence counterparts with proper backgrounds and qualifications have not been assigned to any of the ILO experts in the project. A project revision to adjust project objectives so as to integrate it with the revised Government training strategy and the proposed IDA project is now underway. Bank Group Participation in Education and Training 2.13 Four IDA Credits totalling US$37.5 million have been made to the education sector in Pakistan. These projects were mainly (53% of total expenditures) directed to post-secondary and higher education, and (73% in terms of sectoral impact) to agricultural, technical and teacher education. The first two education projects (Cr 50-PAK, 1964 and Cr. 206-PAK, 1970) have now been completed. 1/ They provided US$8.5 million and US$4 million, respectively, to improve and expand post-secondary education (an agricultural university, industrial technician training and an engineering college). The Third Education Project (Cr 678-PAK, 1977) is providing US$15 million to assist in expanding and improving: (a) middle- and higher-level agricultural education; and (b) general teacher training, particularly in rural areas and among females. The Fourth Education Project (Cr 892-PAK, 1979) is providing US$10 million to assist the Government to ascertain the effects of four inputs --improved teacher training, increased supervision, better instructional mate- rials and more adequate physical facilities in reaching four objectives: more access, less dropout, greater learning achievement and reduced unit recurrent costs in primary education. 2.14 Performance in the implementation of these projects has been marked by considerable delays in the first two projects. However, the situation has steadily improved despite the fact that subsequent projects became larger and more complex in their design and objectives. The following summary of each project describes the experiences and the measures taken to overcome the problems encountered. The First Education Project (Cr. 50-PAK) was completed about eight years behind schedule. The main factors of delay were of an unpredictable nature and included: (a) two wars, (b) floods, (c) shortages of materials, and (d) sharp price increases with subsequent suspension of work. Other factors were: (a) cumbersome implementation procedures, (b) unfamiliar- ity of project staff with IDA procedures, and (c) late appointment of consult- ing architects. The Second Education Project (Cr. 206-PAK) which was completed 3.5 years behind schedule suffered to a lesser extent from similar shortcomings. The main factor of delay, however, was the Government of Sind's reluctance to use Credit funds for foreign experts and fellowships. In the Third Education Project, in order to strengthen implementation capacity and to avoid repetition of earlier delays (Credit 678-PAK), special arrangements were made to improve project implementation by: (i) establishing revolving funds to avoid delays caused by rupee shortages; (ii) training of project staff in a Bank-sponsored implementation seminar helped avoid delays caused under earlier projects by 1/ Completion reports have been produced for the two projects but PPARs are not yet available. - 16 - staff's unfamiliarity with IDA procedures; (iii) assigning specific personnel in existing line agencies to implement the project; (iv) establishing a Federal Project Coordinating Unit with linkages to the Bureau of Educational Planning (BEP) to coordinate all aspects of the project; and (v) making the signing of technical assistance contracts a condition of credit disbursement for portions of the project, in an effort to avoid repetition of earlier delays experienced in the hiring of technical assistance. Despite a current five month implemen- tation delay experienced under the Third Education Project (Credit 678-PAK), there are indications that the above measures are helping to prevent problems experienced under the first two projects. Similarly, in the Fourth Education Project (Credit 892-PAK), further progress has been made in refining project administration arrangements and in building implementation capacity. The Bureau of Educational Planning (BEP) was strengthened to assume overall pro- ject implementation responsibility and has been working in close collaboration with the unit in charge of Credit 678-PAK. Also, the services of a project architect and a procurement officer are being shared between the two organiza- tions. Progress on the Fourth Education Project has been steady, and the technical assistance program for training administrators and evaluators in the primary education system is on schedule. 2.15 The experience described above has been taken into consideration in designing the implementation organization necessary to carry out the proposed project successfully. In this respect, federal and provincial responsibili- ties were identified and described (paras 5.02-5.06) in order to avoid misun- derstandings and overlapping of authority, and staffing patterns and degree of technical assistance and staff training necessary were carefully considered. 2.16 In addition to project activities, the Bank has completed two major sector studies in education and related fields: The Education chapter of the April 1978 Population Planning and Social Services Report (Report No. 2018- PAK) and the December 1978 Education Sector Memorandum (Report No. 2303-PAK). 2.17 The Government and IDA have shared three objectives in their joint education activities, namely, meeting manpower needs, improving quality and-- more recently--increasing equity (for rural people and females). The first objective, expansion of professional and technical education, was pursued through the First and Second Education Projects. The completion report of the First Education Project concluded that the physical objectives of the project were accomplished in terms of training capacity but little qualitative improvement in the technical institutes was achieved. Substantial improvement in the quality of education in the agricultural university was attained but demand for agriculture graduates was over-estimated and actual employment opportunities were leass than originally expected. The Second Education Proj- ect has been successful in meeting manpower needs, but student/staff ratios are higher than those consistent with high quality education. This has been caused by the excessive pressure for engineering education caused by both domestic and foreign employment opportunities. In addition, staff quality is much lower than desirable. This is a direct consequence of the poor salary incentives offered to those in the teaching profession in Pakistan. It is still too early to determine the extent to which objectives are being met in the Third and Fourth Education Projects. - 17 - III. THE PROJECT Project Formulation 3.01 Based on the Vocational Training Plan, in November 1978, the Govern- ment with ILO assistance prepared a project requesting IDA financial assistance for: (a) the implementation of the national vocational management system (para 2.07); (b) the expansion of vocational training facilities (para 2.08(a)(b)(c)): (c) the implementation of the in-plant training scheme (para 2.08(d)); and (d) the establishment of rural and women's training/production facilities (para 2.08(e)(f)). The total capital cost of the proposal presented was US$69.0 million, excluding contingencies. While the overall objectives of the Govern- ment's request were desirable, implementation schedules were excessively optimistic in light of previous vocational training projects, the availability of recurrent funds, and the management capacity of the implementing agency. As a result of discussions between the Government and the Association, the proposals were modified to reflect Pakistan's implementation capacity and to focus on the primary objective of improving and expanding industrial vocational training. Objectives 3.02 The main purpose of the proposed project is to assist the Government in implementing its strategy to strengthen and expand skills training to meet manpower requirements for the industrial sector and to overcome shortages of manpower caused by the emigration of skilled workers. The proposed project would pursue three objectives: (a) help increase the capability of the Govern- ment to plan, manage and evaluate skill training; (b) improve the quality and increase the output from vocational training institutions by about 10,000 per year; and (c) improve the productivity of employed workers. The first objec- tive, would be sought through assistance to the new agencies created under authorization of the National Manpower Training Ordinance (para 2.07). The second objective, would be pursued through expanding training capacity, and reducing the length of training programs from two years to six months. The third objective, would be sought through the introduction of upgrading courses and in-plant training for employed workers. 3.03 The Project would comprise: (a) construction, furniture and equipment for: (i) the National Training Development Institute (NTDI); (ii) six new vocational training centers located at Karachi, Hyderabad, Lahore, Rawalpindi, Sialkot and Mardan; and (iii) 31 existing training centers. (b) furniture and equipment only for the National and four Provincial Training Board Secretariats. - 18 - (c) consumable training materials for all 37 vocational train- ing centers (six new and 31 existing) and the NTDI. (d) incremental staff salaries for all project institutions (NTB, four PTBs, NTDI and 37 training centers). (e) staff training for: (i) 640 instructor staff for the training centers; and (ii) 2,800 training personnel for in-plant training. (f) funds for the preparation of future Education Projects. (g) technical assistance, consisting of expatriate and local technical experts, international and regional fellowships and national workshops, financed by UNDP with ILO as exe- cuting agency. Project Components A. National Vocational Training Management System 3.04 Secretariat of the National Training Board (NTB) (Proposed Outlay US$0.16 million). 1/ A national vocational training management system was established by the Manpower Ordinance of March 1980. The system would comprise the NTB, four PTBs and the NTDI. The NTB would be chaired by the Federal Minister of Labor and Manpower and would have representation from federal ministries including Education, Finance, Planning, Petroleum and Natural Resources, and Water and Power. The Provinces would also be repre- sented on the Board by Additional Chief Secretaries (Development) and the Secretaries of the Departments of Education, Social Welfare and Rural Develop- ment, and Manpower Training. Four representatives from employers and workers organizations, each Province having one representative, would be included in the Board. The NTB would be responsible for preparing regulations and legis- lation pertaining to training, formulation of national policies, approval of training plans and recommending allocations of financial resources. It would also be responsible for evaluating existing curricula and performance, approv- ing new curricula, national skill standards, and tests, and curtailing ineffective programs. Decisions of the NTB would be channelled to the PTBs for implementation. 3.05 The existing National Training Bureau, which is an attached depart- ment of the Ministry of Labor and Manpower (Annex 2) would be the Secretariat of the NTB. The Bureau consists of four regional offices located at Lahore, Karachi, Peshawar and Quetta and a headquarters in Islamabad. The Secretariat would assist the NTB in carrying out its functions (paragraph 3.04). The pro- posed project would finance furniture and equipment for the National Training 1/ This and subsequent statements of proposed outlays exclude contingencies. - 19 - Bureau to facilitate its expanded operations. Bureau staff will also be trained and upgraded through a fellowship program financed by the UNDP (para 3.22). 3.06 Provincial Training Boards (PTBs) (Proposed outlay US$0.19 million). Under the Manpower Ordinance, the PTBs would be similarly constituted as the NTB but with the Provincial Secretary of Labor acting as Chairman. The PTBs would be responsible for approving training schemes and recommending them to the NTB for financing. The Provincial Labor Departments would act as the Secretariats to the PTBs and would be responsible for executing the approved training programs, inspection and supervision of vocational training, organi- zing trade testing and in-plant advisory services, assessing training needs and preparing provincial training plans. The proposed project would assist in strengthening the Provincial Labor Departments by financing equipment and salaries of the additional staff required to make them function as Secre- tariats. 3.07 National Training Development Institute (NTDI) (Proposed Outlay US$1.44 million). The NTB and PTBs would be assisted by the NTDI. The Institute would carry out job analysis, curriculum development, training material design and production, skill standard setting and the evaluation of training methodology and delivery systems. It would organize courses for instructors (both skill upgrading and methodology), training center senior staff and company training personnel. The NTDI would be headed by a Director and would consist of five departments, i.e., occupational analysis and cur- riculum development, trade testing, staff training, training materials deve- lopment; and research and evaluation. The proposed project would finance construction, furniture and equipment for the NTDI in order to centralize vocational training research and evaluation in the country. It would also finance the salaries of staff required for establishing the NTDI. During negotiations, the Government gave an assurance that preliminary designs for the NTDI would be submitted to the Association for its review by December 31, 1981. 3.08 About 122 professional and higher support staff would be required to staff the Training Boards and the NTDI. Existing staff in the National Training Bureau and the Provincial Labor Departments amount to 68 persons leaving a net increase of about 54. Table 3.1 shows the recruitment plan for the professional staff for the Boards and NTDI. All professional staff would receive training through either (a) the fellowship program financed by UNDP (para 3.22); (b) participation in courses organized by the technical assis- tance experts financed by UNDP; or (c) working as counterparts to the experts. To facilitate the establishment of the four Provincial Secretariats which, as technical institutions, are fundamental to the organization and management of vocational training in Pakistan, staff salaries would be financed out of the credit for 5 years. IDA financing would amount to about 45% of the total cost of salaries and consumable materials. During negotiations the Association and the Government agreed to the staffing pattern and budgetary provisions for the NTDI. The PC-1 which includes these agreements has been approved by the Executive Committee of the National Economic Council (ECNEC). - 20 - Table 3.1: STAFF RECRUITMENT PLAN FOR TRAINING BOARDS AND THE NATIONAL TRAINING DEVELOPMENT INSTITUTE Existing -…--New Staff to be Recruited---- Staff 1981 1982 1983 1984 1985 Total National Training Bureau 31 - - - - - 31 National Training Development Inst. - 15 10 5 - - 30 Provincial Training Boards (Provincial Labor Departments) 1. Punjab 14 4 4 3 - - 25 2. Sind 12 4 2 - - - 18 3. N.W.F.P. 7 2 2 - - - 11 4. Baluchistan 4 2 1 - - - 7 Total 68 27 19 8 - - 122 B. Industrial Training 3.09 Industrial training capacity would be increased from about 10,000 to about 20,000 p.a. by reducing the average length of job entry courses from two years to an average of between six and nine months in most institutes and operating training centers on two shifts where this is not being done already (paras 2.05(c) (i) and (ii)). In addition, six new centers would be construc- ted. Skill levels would be upgraded by the provision of equipment, the supply of consumable training materials, staff training and trade testing. Courses in the training centers would be linked with structured in-plant training for apprentices. 3.10 Training Centers (Proposed outlay US$27.93 million). The proposed project would finance six new training centers located in industrial urban areas where training demand is high. These are: Lahore, Sialkot, Rawalpindi, Landhi (Karachi), Hyderabad and Mardan. The project would also finance the rehabilitation and re-equipping of 31 existing centers. The range of courses offered at the centers would include fitting, turning, machining, welding, electricity, radio, instrument mechanics, auto and diesel mechanics, carpentry, plumbing and pipefitting, bricklaying, drafting, sheet metal work, pattern- making and refrigeration. Specialized training such as forging and heat treatment, electroplating and leatherwork has been provided in centers located in areas where such training is warranted. Three of the new training centers located at Karachi, Hyderabad and Mardan and one center expanded at Faisalabad will also include facilities for training textile operators and maintenance personnel. Starting with the next admission of trainees after July 1981, a second-shift of short job entry courses of about six months duration (720 hours) would be introduced at the following nine existing technical training centers: Gulberg, Mogulpura, Multan, R.Y. Khan, Gujarkhan, Kotri, Nazimabad, Peshawar and Quetta. These centers would continue to operate the long course program (2 years) during the first shift. In all other project institutions, - 21 - short courses would be introduced and operated on both shifts. During nego- tiations the Government gave assurances that with the next admission of trainees after July 31, 1981 it would introduce short job entry courses of about six months duration in all projett institutions and specifically in the second-shift at nine TTCs operating long courses during the first shift. The Government also provided assurances that it would establish by December 31, 1981, national skill standards for mechanical, electrical and construction trades (para 2.05(b)(iii)) satisfactory to the Association and would test and certify students in these trades. The Government further provided assurances that it would establish by June 30, 1982, national skill standards and tests for all additional trades offered at vocational training institutions. 3.11 To ensure that all courses in the training centers are relevant to the needs of local industry, the Government undertook and completed a training needs assessment with ILO assistance, among industrialists in the catchment area of each center. Final decisions on the courses have, therefore, been made, and preliminary equipment lists and workshop layouts developed. In order that close links with industry continue and the training is relevant to local labor market needs, the government provided an assurance that advisory committees would be established with industry representation within six months of the opening of each new institution and by December 1981 for all existing project centers. During negotiations, the Government gave an assurance that preliminary designs for the six new training centers would be submitted to the Association for its review by December 31, 1981. 1/ As a condition of Credit effectiveness, the Government has been asked to enter into an agreement with a consulting architectural firm whose qualifications, experience and terms and conditions of employment are satisfactory to the Association, which would provide design and supervision services for the entire project. 3.12 The minimum general requirements for admission would be 16 years of age and completion of Grade 8, except in such trades as radio repair and drafting where a secondary school certificate may be necessary. As far as possible, trainees would be placed in the institution-linked in-plant training scheme. Where such schemes call for evening courses in association with the on-the-job training, these would be arranged. Those graduates not placed in the scheme would be assisted in finding work by the employment service of the Department of Labor. 3.13 The training centers would require about 640 additional trade instructors and some 12 senior technical staff (staff/trainee ratio 1:10). Trade instructors would be recruited from among skilled workers and foremen in industrial occupations. They should be literate and numerate and have a minimum of five years of industrial experience in their specialty. (Table 3.2 shows an instructor and senior staff recruitment schedule.) The selection procedure would include literacy, numeracy and skills tests designed to 1/ This is a departure from OMS 2.28 which requires completion of prelimi- nary designs prior to Board Presentation. However, since the majority of training centers (31) included in the project already exist, it would be unfair to delay the project. - 22 - highlight skill competence. During negotiations, the Association and the Government agreed to the staffing pattern and recruitment schedule of addi- tional instructors for the Training Centers. Table 3.2: RECRUITMENT SCHEDULE OF ADDITIONAL INSTRUCTORS Province 1981 1982 1983 1984 1985 Total Punjab 210 72 135 - - 417 Sind 43 - 10 95 - 148 N.W.F.P. 29 13 13 - - 55 Baluchistan 20 - - - - 20 Total 302 85 158 95 - 640 Senior Technical Staff all provinces /a 8 4 - 12 /a 3.14 At present 435 instructors are employed in the vocational training institutions. Generally, they do not have the requisite level of skills for vocational instruction. In addition, about fifty percent of the sanctioned posts in the GVIs are unfilled mainly because the salaries of the instructors are not comparable with wages received by skilled workers in the open market. Wages of skilled workers range from Rs 50 to Rs 70 per day or Rs 2,000 per month. Present pay scales of instructors range from Rs 370-700 per month (National Pay Scales Grade 8-9). Since the recruitment and retention in ser- vice of skilled instructors is the key to the success of the vocational train- ing component of the project, the Government has agreed to an enhanced scale of remuneration for instructors. Instructor salaries have now been increased to Rs 520-1,325 per month (NPS Grades 14-16). When these salaries are com- bined with the normal housing, medical and other benefits of Government employment, it is expected that instructor salaries would be competitive with those available to skilled workers in the private sector. The Government has further agreed that instructors would be hired on contract rates of Rs 2,000 per month or more, should it prove difficult to recruit suitable qualified instructors even at the enhanced scales. The PC-I including budgetary allo- cations on the proposed scale for instructors has been approved by ECNEC. 3.15 Because of transportation problems and the need to extend the catch- ment area of some TTCs, boarding accomodation has been included for some institutions averaging about 17% of the student capacity in all institutions. Additional boarding facilities will not be provided at institutions where the Government is already providing accomodations, nor at institutions located in urban areas. Furthermore, to facilitate the changeover to short courses and double shift operation in existing training centers, the start-up of the new centers, and upgrading of skill levels among trainees, salaries and consumable training materials would be financed by the credit for five years starting July 1981. Financing would average 45% of total costs of additional pro- fessional salaries and consumable materials. The PC-I, including the foreign - 23 - exchange needs for consumable training materials which are not covered by IDA funds, has been approved by ECNEC. 3.16 Instructor Training. Instructor training programs will have to be undertaken on a large scale not only for the newly recruited instructors but also for upgrading the competence of the existing instructors in both skill and training methodology. Skill upgrading courses of varying duration would be carried out at existing TTCs located at Gulberg, Moghulpura, Kotri, Karachi, Peshawar and Rawalpindi. This would be a continuation of the work already undertaken by the ILO (para 2.11(v)). These courses would upgrade instruc- tors' skills to established standards. The senior instructors of these institutions would assume full responsibility for instructor skill training and upgrading. Together with existing supervisory staff they would partici- pate in a series of courses organized by the ILO experts in conjunction with the NTDI in the organization and management of training centers. During negotiations, the Government provided an assurance that it would submit to the Association for its review, a draft Training Plan by July 31, 1981. The Training Plan would be prepared with ILO technical assistance (para 3.22) and would be integrated and coordinated with the on-going ILO sponsored staff training program. The project would finance the travel and daily allowance of instructors and NTDI staff involved in training. It would also cover the cost of consumable training materials and other instructional materials including audio-visual training aids. 3.17 In-Plant Training (Proposed outlay US$1.08 million). Although institutional training is the central feature of the Government's Vocational Training Plan, training within industrial enterprises is an integral part of the strategy. Efforts to involve employers more intimately with training and its benefits are envisaged under the project. First, employers through advisory committees will be involved in the functioning of training insti- tutions, and would be able to have courses and curricula adjusted periodically to meet their manpower needs (para 3.11). The second form of employer involve- ment in training is through in-plant training. An in-plant training program is needed to upgrade unskilled workers and to replace skilled workers who are leaving industry for employment abroad. Employment of a disproportionate number of unskilled workers in industry results in low productivity and high wastage and accident rates. The project would assist in the establishment of an In-Plant Training Advisory Service which would be located in the Provin- cial Labor Departments. The Advisory Service would provide a comprehensive range of services to public and private industry: the diagnosis of training needs, the preparation and organization of training programs and materials, and measuring the effectiveness of training within the enterprise. Training programs would focus on improving manufacturing efficiency and product quality and maintenance techniques. With the assistance of the NTDI and technical assistance (ILO experts) a cadre of personnel would be developed for the industrial sector, which, over time, would create effective training programs to promote productivity as well as meeting the internal training needs of the enterprises. Group training or individual, company-based schemes would be organized and implemented. 3.18 Under the training scheme, 2,800 in-plant trainers will be trained over the project period. The centerpiece of this training system is the - 24 - Module for Training Supervisors (MTS) which has been developed by the ILO and utilized successfully in Norway and Iran. The MTS system is easy to install, manage and operate, and once instituted it is a continuous process: i.e. the Chief Trainer (from the Advisory Service) trains an In-Plant Trainer, who in turn trains supervisors and they then train foremen and production workers in the enterprise. With the MTS scheme, the involvement of management is guaranteed because without their support, the scheme cannot be launched in an organization. The Project would finance the salaries and vehicles of the staff required for the establishment of the In-Plant Training Advisory Service. It would also finance the production of training materials and the cost of training the 2,800 in-plant trainers. Funds for the training of supervisors and instructors for in-plant training, in the textile industry have been provided in another IDA Credit. 1/ 3.19 Evaluation. A system of evaluation would be developed by the NTDI with the assistance of technical experts financed under the UNDP Technical Assistance Program (para 3.22). This system would evaluate the external and internal effectiveness of the training activities financed under the project. External evaluation would focus on the effect of training both on the enter- prise and the trainee. Statistics would be gathered annually from represen- tative enterprises in each industrial sector covering (i) number of appren- tices and trainees engaged; (ii) expenditure on training; (iii) workers' wages with training and without training; and (iv) evaluation of the training effort in the productivity of the worker, labor turnover and mobility, the quality of work produced, and the attitude of the worker. For the individual trainee a career follow-up scheme would be devised to record his progress. 3.20 Internal evaluation would focus on the comparative advantages of short courses and the training costs of different delivery systems. It would aim at identifying the most cost-efficient system. During negotiations the Government provided an assurance that it would make available to IDA a draft evaluation plan for review and comments by July 31, 1981. It also provided an assurance that it would establish and have operational by December 31, 1981, a monitoring and evaluation system satisfactory to the Association, which would evaluate annually the effectiveness and impact of the industrial training programs carried out under the project. Finally, the Government provided an assurance that it would submit to IDA for review and comment, annual evalua- tion reports of the industrial skills training component for the duration of the project. 3.21 Future Education Projects (Proposed outlay US$0.2 million). Funds have been included in the project for the preparation of future education and training projects. Since this project is viewed as a first phase effort, preparation of the second phase which would include possible assistance to private training institutions would commence during the period of project implementation. 3.22 Technical Assistance Program. The total cost is estimated at US$1.58 million. The UNDP has agreed to finance the technical assistance 1/ US$3.0 million has been included in the PICIC Industrial Development Project. - 25 - with ILO acting as the Executing Agency because the proposed project repre- sents a logical extension to the UNDP/ILO Federal Skills Development Project (para 2.11). The project would require about 185 man-months of expatriate experts for staff training, evaluation, curriculum development and national skill standard setting and testing, and 185 man-months of locally recruited technical staff. The project would also finance 168 man-months of adminis- trative support staff. In addition, the program includes about 40 man-months of international and regional fellowships and 450 man-months for national workshops. The Government and the UNDP have already signed the technical assistance contract to enable (a) the quick approval of equipment lists and a speeding up of the procurement process; and (b) the early training of counter- part staff to avoid the problems encountered by the ILO Federal Skill Develop- ment Project (para 2.12). IV. PROJECT COST AND FINANCING Project Cost 4.01 The total cost of the project is estimated at Rs 410.81 million or US$41.48 million equivalent net of taxes and duties, excluding the technical assistance financed under the UNDP/ILO Program (para 3.22). Detailed costs and foreign exchange components are given in Annex 3. Costs by project item are summarized in Table 4.1. - 26 - Table 4.1: SUMMARY OF,COSTS BY PROJECT COMPONENT Million Rupees Million US$ % of Local Foreign Total Local Foreign Total Total 1. Training Infrastructure National Training Board 1.27 0.33 1.60 0.13 0.03 0.16 0.5 (NTB) National Training 9.49 4.80 14.29 0.96 0.48 1.44 4.7 Development Institute (NTDI) Provincial Training 1.01 0.86 1.87 0.10 0.09 0.19 0.6 Boards (PTBs) SUB-TOTAL 1 11.76 5.99 17.76 1.19 0.61 1.79 5.8 2. Vocational Training Centers Punjab Centers (24) 96.66 64.56 161.22 9.76 6.52 16.28 52.5 - 3 New Centers - 21 Existing Centers Sind Centers (6) 38.50 27.77 66.27 3.89 2.81 6.69 21.6 - 2 New Centers - 4 Existing Centers N.W.F.P. Centers (5) 19.23 16.94 36.17 1.94 1.71 3.65 11.8 - 1 New Center - 4 Existing Centers Baluchistan Centers (2) 9.14 3.71 12.85 0.92 0.37 1.30 4.2 - 2 Existing Centers _ SUB-TOTAL 2 163.53 112.98 276.51 16.52 11.41 27.93 90.0 3.' In-Plant Training 8.79 1.93 10.71 0.89 0.19 1.08 3.5 4. Future Education Projects 0.22 2.00 2.23 0.02 0.20 0.23 0.7 TOTAL BASELINE COSTS 184.30 122.91 307.21 18.62 12.41 31.03 100.0 Contingencies Physical 20.27 12.90 33.17 2.05 1.30 3.35 10.8 Price 71.72 40.85 112.57 7.24 4.13 11.37 36.6 Sub-total Contingencies 91.99 53.75 145.74 9.29 5.43 14.72 Total Project Costs 276.29 176.66 452.95 27.91 17.84 45.75 Less: Customs Duties and Taxes Levied on Imported Materials 42.14 - 42.14 4.27 - 4.27 Total Project Costs Net of Customs Duties and Taxes 233.42 176.66 410.81 23.64 17.84 41.48 UNDP/ILO Technical Assistance Program 3.66 11.98 15.64 0.37 1.21 1.58 Total Project Costs Including Technical Assistance 237.08 188.64 426.45 24.01 19.05 43.06 Figures may not add due to rounding. - 27 - 4.02 Cost breakdown by categories of expenditure is summarized in Table 4.2 below. Table 4.2: PROJECT COSTS BY CATEGORY OF EXPENDITURE Million Rupees Million US$ % of Local Foreign Total Local Foreign Total Total 1. Site Development 10.73 3.58 14.31 1.08 0.36 1.45 4.7 2. Building 61.58 20.53 82.11 6.22 2.07 8.29 26.7 3. Furniture 4.71 1.57 6.27 0.48 0.16 0.63 2.0 4. Equipment 11.45 76.39 87.84 1.16 7.72 8.87 28.6 5. Professional Services Architectural design/supervision 4.19 0.47 4.66 0.42 0.05 0.47 1.5 6. Consumable Materials 17.75 17.75 35.49 1.79 1.79 3.59 11.6 7. Incremental Staff Salaries 65.47 0.00 65.47 6.61 0.00 6.61 21.3 8. Per-diem expenditures 7.03 0.00 7.03 0.71 0.00 0.71 2.3 9. Learning Materials 1.17 0.63 1.80 0.12 0.06 0.18 0.6 10. Consultants /a 0.22 2.00 2.23 0.02 0.20 0.23 0.7 Total Baseline Costs 184.30 122.91 307.21 18.62 12.41 31.03 100.0 Contingencies Physical 20.27 12.90 33.17 2.05 1.30 3.35 10.8 Price 71.72 40.85 112.57 7.24 4.13 11.37 36.6 Sub-Total \Contingencies 91.99 53.75 145.74 9.29 5.43 14.72 Total Project Costs 276.29 176.66 452.95 27.91 17.85 45.75 Less: Customs Duties and Taxes Levied on Imported Materials 42.14 - 42.14 4.27 - 4.27 Total Project Costs Net of Customs Duties and Taxes 233.42 176.66 410.81 23.64 17.84 41.48 UNDP/ILO Technical Assistance Program 3.66 11.98 15.64 0.37 1.21 1.58 Total Project Costs Including Technical Assistance 237.08 188.64 426.45 24.01 19.05 43.06 Figures may not add due to rounding. /a For preparation of future education and training projects. - 28 - 4.03 Base cost estimates refer to June 1980 prices, and were calculated on the following basis: Construction Costs - on facilities of a similar nature recently completed in Pakistan. The average unit cost was estimated at about US$ 14 per sq. ft. excluding site development and contingencies, compared with US$ 14 per sq ft. in Nepal, US$ 12 in Bangladesh and US$10 in India for similar facilities. Equipment and Furniture - on detailed equipment lists prepared with ILO assis- tance, and minimum furniture requirements. Consumable Materials - on appro- priate cost/trainee place (by trade) in comparable projects elsewhere in the world. Architectural design and Supervision Services - on acceptable national practices, about 5% of construction costs. Specialist Services at US$ 75,000 per man-year (expatriate consultants) and US$7,200 per man-year for locally recruited consultants. Fellowships at US$30,000 per man-year. Operating and Training Cost - on detailed breakdowns of staff requirements. Salaries - on the proposed incentive package for instructors (para 3.13) and on applicable National Pay Scales plus allowances (range PR 1325-2750-NPS 16-19). 4.04 Unit Areas and Costs of new facilities (net of contingencies, operat- ing costs and costs for professional services) are shown in Table 4.3 below. The planning of facilities has been based on functional and economic consider- ations. Technical limitations, climatic and social factors have also been taken into account. Unit costs were derived from recent building contracts for similar facilities in Pakistan. Local materials and building techniques would be used to the maximum extent possible. Table 4.3: AREA AND COST PER PLACE Gross Area (Sq. ft.) Baseline Cost (US$) Per Place or Unit Per Place or Unit Civil Works Furniture Equipment Type of Facility 1. Training Facilities 173 (180) 2,556 (5,222) 255 (307) 2,690 (2,786) 2. Student Boarding 120 (112) 2,036 (2,485) 204 (245) - 3. Staff Housing 1,100 (1,076) 17,912 (31,640) - Figures in parentheses are: median unit areas and costs of Bank-financed projects in Asia (1974-77). Costs were adjusted for price increases to 1980 (plus 40%). Gross area allocations for student boarding facilities and staff housing are in conformity with Government standards. In aggregate, training facilities account for about 52% of total baseline costs, and boarding and staff housing for about 13%. The Training Center facilities would be economically used in double shift operations. 4.05 Customs Duties and Taxes. All goods specifically imported for the project would be subject to customs duties and taxes. The total amount of - 29 - local taxes is estimated at about US$4.27 million. Instructional equipment and consumable training materials are not exempt from taxes. During nego- tiations the Government provided assurances that it would take necessary steps, including the provision of adequate funds to ensure efficient customs clearance of all goods imported for use under the project. 4.06 Contingency Allowances. Estimated project costs include physical contingencies (US$3.35 million) estimated at 10% of base cost for unforeseen factors, and price contingencies (US$11.37 million) to cover expected price escalation in accordance with the phasing of the project as shown in Table 4.4 below: Table 4.4: PRICE ESCALATION ESTIMATES Annual Percentages of Price Increases Year Local Foreign Civil Works, Furniture, Equipment, 1980-81 15 9 Consumable Materials, and 1982 12 8 Learning Materials 1983-85 10 7 Consultants' Services, Professional 1980-81 6 9 Services 1982 6 8 1983-85 6 7 Salaries and Per Diem Expenditures 1980-85 6 n.a. Detailed contingency allowances are shown in Annex 4. 4.07 Foreign Exchange Component. Based on detailed analysis of expen- ditures in similar projects in Pakistan, the foreign exchange component has been estimated as follows: (a) site development, 25%; (b) buildings 25%; (c) furniture, 25%; (d) equipment, 87%; (c) professional services, 10%; (f) consumable materials, 50%; (g) salaries 0%; (g) per diem expenditures 0%; (i) learning materials 35%; and consultants' services 90%. These percentages have been derived by (a) determining the costs of civil works attributable to materials, labor overhead and profit, (b) analyzing the c.i.f. Karachi costs of imported building materials equipment and furniture, inland transportation and insurances, and delivery and installation of equipment and furniture. The foreign exchange component is estimated at US$17.85 million, or about 43% of the total project cost net of customs duties and taxes. Customs duties and taxes imposed on imported building materials would be borne by the borrower. Financial Plan 4.08 The total net project cost of US$41.48 million equivalent excluding technical assistance would be financed as follows: (a) the proposed IDA credit of US$25.0 million would cover 60% of total project costs net of taxes and duties (100% of the foreign exchange costs and 30% of local costs); and - 30 - (b) the Government would finance the remaining net costs of (us$16.48 million (40% of total project costs), and an estimated US$4.27 million in taxes and duties. An additional US$1.58 million equivalent for technical assistance (experts and fellowships) would be financed by UNDP. 4.09 The financial plan and IDA credit allocations by category of expen- diture is presented in Table 4.5 below: Table 4.5: FINANCIAL PLAN Government of % of IDA Category Pakistan IDA UNDP Total Financing …(______ in US$ million) -------- 1. Civil Works 8.17 5.44 13.61 40 2. Furniture 0.58 0.38 0.96 40 3. Equipment 1.84 10.40 12.24 85 4. Prof. Services (design/supervision) 0.35 0.23 0.58 40 5. Consumable materials 2.95 2.42 5.37 45 6. Staff salaries 4.74 3.87 8.61 45 7. Per-diem expenditures 0.50 0.42 0.92 45 8. Learning material 0.17 0.11 0.28 40 9. Future Project Preparation - 0.33 0.33 100 10. Unallocated 1.49 1.40 2.89 50 Total Project Cost 20.75 25.00 45.75 55 Less Taxes and Duties 4.27 - 4.27 - Total Project Cost Net of Taxes and Duties 16.48 25.00 41.46 60 Technical Assistance - - 1.58 1.58 Note: Unallocated represents about 20% of the estimated contingencies. The remaining 80% contingency as estimated for each category is included in above allocations. Recurrent Cost Implications 4.10 By 1985, projected annual recurrent costs would amount to about Rs 69.04 million (US$6.97 million) for institutional vocational training conducted under the Ministry of Labor and Manpower, and the Provincial Labor and Education Departments. Annual recurrent costs (salaries and consumable training materials only) of about Rs 39.17 million (US$3.96 million) would be generated by the project institutions, the NTDI and the Secretariats of the NTB and PTBs. Other recurrent costs would be incurred by ancilliary staff, overhead costs, and institutions not financed under the project. - 31 - 4.11 In 1978/79, recurrent expenditures on vocational/technical education amounted to Rs 114 million (Table 2.2) (US$11.5 million) or 4% of recurrent education expenditures. However, expenditures on institutional vocational training accounted for Rs 12.52 million (Table 4.5) (US$1.2 million), which is about 10.5% of vocational/technical expenditures or less than 1% of recur- rent education expenditures. In 1985, Rs 69.04 million would account for over 25% of vocational/technical education expenditures if they continue to grow at a similar rate as in the past (about 4% p.a.) and would account for about 3% of total recurrent education expenditures which appears to be reasonable. The cost per trainee hour is now about US$0.17, but under the project this would increase to US$0.46 due mainly to the increase in the per-student allocation of training materials, instructor salary increases, and allowances for the maintenance and depreciation of equipment and buildings. The cost per trainee hour would then be more in line with other countries (e.g., Bangladesh US$0.37, Korea US$0.50). Table 4.6 shows that while instructor salaries would have increased they would account for a smaller share of overall recurrent costs because allocations to consumable training materials and overheads have increased substantially. 4.12 Flow of Funds. The new organization of the NTB and PTBs would be able to provide capital and operational financing, additional to that of the provincial ADPs. The existing normal budgetary allocations for the training programs already in the provincial ADPs would be supplemented by the NTB fund, established under the National Manpower Ordinance (para 3.04). The funds would be channelled through the PTBs to the executing agency (Provincial Labor Departments). This procedure will also enable the NTB and PTBs to initiate new training programs without the lengthy procedures of provincial budgetary allocations. 4.13 Budget allocations would be made available to the project on an annual basis in accordance with the Forecast of Expenditures and Disbursements shown in Annex 7. In addition, the financial requirements for the project would be reviewed regularly by the implementing agency (NTB and Provincial Labor Departments) to ensure that project implementation is not delayed because of lack of funds. During negotiations, the Government gave assurances that it would: (a) furnish to the Association by March 1 of each year of implementation, an estimate of project funds required for the following fiscal year; and (b) make the necessary funds available to ensure prompt project implementation. - 32 - TABLE 4.6 ANNUAL OPERATING COSTS OF PROJECT INSTITUTIONS 1979, 1985 (RS Millions) Teaching/Administration Anciliary Consu-able Provinces Staff Budget Staff Budget Materials Overheads Total Number of Institutions 1979 1985 1979 1985 1979 1985 1979 1985 1979 1985 Administration 1.37 a) 5.49 b) - - - - - - 1.37 5.49 Punjab (24) 3.95 14.29 1.88 3.28 0.86 5.87 1.37 14.73 8.06 38.17 Sind (6) 0.93 5.30 0.44 0.92 0.18 2.46 0.21 2.83 1.76 U1.51 N.W.F.P. (5) 0.66 2.80 0.14 0.67 0.08 1.34 0.07 1.85 0.96 6.66 Baluchistan (2) 0.22 1.11 0.06 0.25 0.02 0.51 0.06 1.25 0.37 3.14 TOTAL 7.13 28.99 2.52 5.12 1.14 10.18 1.17 20.66 12.52 64.97 Percentages (1979) 57.0 20.2 9.2 13.6 (1985) 44.6 7.9 15.7 3.18 a) includes National Training Bureau and Provincial Directorates of Manppwer and Training b) includes Secretariats of the NTB, PTBs, and the NTDI V. PROJECT IMPLEMENTATION Implementation 5.01 The project would be implemented over a period of about five years. Completion of the physical facilities (including procurement and installation of equipment and furniture) should be achieved in about three and a half years from credit effectiveness (by about September 1984). To assist in effective and timely project execution, a detailed implementation schedule has been prepared (Annex 6). This schedule would also serve as a monitoring device during implementation and would be updated by the implementation staff of the NTB secretariat and the PTBs. 5.02 Administration/Organization. The project would be carried out by implementation and management capacity in the existing system rather than creating a separate Project Implementation Unit. The organization would com- prise a National Training Board (NTB) at the federal level, and four Provincial Training Boards (PTBs). The existing National Training Bureau in the Ministry of Labor would function as the secretariat of the NTB, and become the federal unit responsible for overall coordination of project activities and liaison with the Association. The Provincial Labor Departments would be strengthened, - 33 - and would function as the Secretariats of the PTBs. However, implementation of the project would become the responsibility of the Provincial Labor Depart- ments. Annex 5 shows the organization and functional responsibilities of the various agencies involved. 5.03 The Provincial Labor Departments would be responsible for the educational and training aspects of the project in its initial phase. How- ever, as NTDI staff is recruited and strengthened by the foreign and local experts financed by the UNDP (para 3.22), these responsibilities will devolve to the NTDI. The NTDI would be headed by a Director and will consist of five departments based on educational and training requirements (para 3.07). 5.04 Duties and Responsibilities of the National Training Bureau (NTB Secretariat). The Secretariat of the NTB would coordinate training and imple- mentation activities of the PTBs. Specifically, the NTB responsibilities would include: (a) coordinating the activities of all public and private agencies associated with the project; (b) organizing international procurement of equipment in cooperation with the ILO (Equipro) and the PTBs; (c) organizing and adminstering technical assistance and fellowship programs (financed by UNDP/ILO); (d) monitoring progress of the PTB activities; (e) transferring project funds to the PTB; (f) maintaining project accounts; (g) maintaining liaison with IDA (including preparation of Quarterly Progress Reports); and (h) preparing withdrawal applications. 5.05 Duties and Responsibilities of the NTDI would include: (a) developing curricula; (b) setting skill standards; (c) evaluating training methodology and delivery systems; (d) carrying out job analysis; and (e) organizing courses for instructors, senior staff and in- plant training staff. - 34 - 5.06 Duties and Responsibilities of the Provincial Labor Departments (PTB Secretariats) would include: (a) briefing architectural designers (PWD); (b) preparing (in consultation with the NTB, the experts and recipient institutions) master lises of equipment and furniture; (c) preparing and reviewing project reports, plans, speci- fications and other material related to each province; (d) inviting and evaluating bids and awards for civil works, local equipment, furniture and training materials; (e) supervising construction of buildings and delivery and installation of equipment and furniture; (f) transferring funds to project institutions and maintaining project accounts; and (g) submitting documents needed to support withdrawal appli- cations to the NTB Secretariat. 5.07 Architectural Services and Designs. The Public Works Departments in the provinces have in the past prepared designs for vocational training centers which are reasonably functional but with certain design deficiencies. It is therefore recommended that prototype designs for the new centers be developed by a competent private firm of consultants (local or expatriate) with specific experience in the design of vocational training facilities. During negotiations the Government provided an assurance that it would send to the Association for review and approval by December 31, 1981, preliminary prototype designs and workshop layouts for new centers and preliminary designs for the NTDI. Subsequent preparation of working drawings and tender documents, tendering and supervision could be handled by the PWD. Minor supplemental architectural and engineering designs would be prepared with the assistance of local consultants. 5.08 IDA Review and Approval. Master equipment and furniture lists, equipment specifications, fellowship programs, TOR of experts, site layout plans and preliminary designs for civil works, draft tender and contract documents and cost estimates, on their completion would be reviewed and approved by the Association. Review of bid evaluation documents and Bor- rower' s recommendations would be required prior to the award of civil works contracts exceeding US$200,000 equivalent and for any contracts for equipment, learning materials, furniture, building materials and consumable training materials, exceeding US$50,000 equivalent. 5.09 Construction. Construction of the civil works component would be undertaken by private contractors. Only prequalified contractors would be allowed to bid for civil works contracts under this project. - 35 - 5.10 Sites. Sites for all of the new institutions have been acquired in accordance with criteria acceptable to the Association. Procurement Local Competitive Bidding (LCB) (US$36.95 million) 1/ 5.11 Civil Works and Furniture (US$24.92 million). Past experience in Pakistan has shown that contracts for civil works and furniture do not attract foreign bidders, unless they are substantially in excess of US$500,000. Therefore, contracts for civil works and furniture would be awarded on the basis of competitive bidding advertised locally following procedures satis- factory to the Association. Foreign contractors would be allowed to partici- pate if they express an interest in doing so. 5.12 Equipment (US$2.62 million). Contracts that cannot be grouped into packages-for bulk procurement of at least US$50,000, not exceeding in the aggregate US$2.62 million (equivalent to about 20% of the estimated total cost of equipment would be procured in accordance with local competitive bidding procedures satisfactory to the Association. 5.13 Learning materials (US$0.30 million) mostly printed matter, would be procured in accordance with standard government procedures, on the basis of competitive bidding. 5.14 Consumable training materials (US$9.11 million). Timely delivery of consumable materials is very critical, therefore, such materials would be procured locally on the basis of competitive bidding by each institution, separately, to avoid the complicated logistics of mass procurement. International Competitive Bidding (ICB) (US$12.47 million) 5.15 Equipment (US$10.47 million). Contracts exceeding US$50,000 equi- valent would be awarded on the basis of international competitive bidding in accordance with Bank Group guidelines. Local manufacturers would receive a margin of preference in bid evaluation of 15% of the c.i.f. price of competing imports or the actual customs duty, whichever is lower. Prudent Shopping (Local and International) (US$2.0 million) 5.16 Off-the-shelf-items of, equipment, furniture, consumable training materials and learning materials, (special items, spares, etc.) not exceeding US$20,000, equivalent for each contract and aggregating a maximum of US$2.00 million (equivalent to about 10% of the estimated total cost of equipment furniture consumable training materials and learning materials), could be purchased on the basis of a minimum of three competitive price quotations. 1/ This and subsequent statements are estimates including contingencies. - 36 - Association Review 5.17 Prior approval of the Association would be required for the award of any civil works contract exceeding US$200,000 equivalent and for any equip- ment, furniture, consumable training materials, and learning materials, con- tracts exceeding US$50,000. Disbursements 5.18 The proposed credit of US$25.00 million would finance 60% of the total project costs, net of customs duties and taxes. The proceeds of the proposed IDA credit would finance: (a) 100% of the c.i.f. cost of directly imported equipment; (b) 100% of the ex-factory price of locally manufactured equipment; (c) 100% of the cost of consultant services; (d) 80% of the cost of equipment procured locally; (e) 45% of expenditures on incremental staff salaries and consumable training materials; and (f) 40% of expenditures on civil works, furniture and related professional fees for design and supervision services. 5.19 Documentation. Withdrawal applications would be supported by full documentation, except for expenditures on salaries and consumable training materials which would be reimbursed against statements of expenditures signed by the Project Director. Documentation for these statements would be retained by the project unit and be available for review by IDA during project super- vision missions. To the extent practicable, withdrawal applications would be aggregated in amounts of US$50,000 or more prior to submission to the Asso- ciation for reimbursement out of the proceeds of the proposed credit. Undis- bursed funds could be used with the approval of the Association for other project-related components. The percentages of (c), (d), and (e) above would be adjusted as necessary to spread disbursement over the estimated project implementation period. A forecast of expenditures and disbursements is shown in Annex 7. 5.20 Project Accounts and Audits. Project expenditures would be recorded in accordance with sound accounting practices. Accounts and financial state- ments for each fiscal year would be audited by competent auditors acceptable to the Association. During negotiations the Government gave assurances that it would carry out an annual audit satisfactory to IDA of the accounts of the National Training Board, the Provincial Training Boards and the National Training Development Institute, and would furnish to IDA as soon as available, but not later than six months after the end of each fiscal year: (i) certi- fied copies of the consolidated financial statements of accounts of these agencies; and (ii) an auditor's report of these accounts. - 37 - VI. BENEFITS AND RISKS Benefits 6.01 The proposed project would form an integral part of the Government's strategy to expand vocational training and produce the skilled manpower needed for industrial development and for the replacement of skilled workers emigrating to the Middle East. Project institutions (GVIs and TTCs) would help to accel- erate the output of skilled and semiskilled workers, which would benefit the Government in the implementation of its development projects. This would in turn increase production in the industrial and manufacturing sectors by achiev- ing a higher ratio of skilled workers to unskilled workers, thereby reducing the need for extensive ad hoc on-the-job training. The industrial sector would also benefit from the program for in-plant training and upgrading of unskilled workers. In addition, an increase in skilled workers would enable the country to capitalize (through foreign exchange remittances) on Middle East employment opportunities without disrupting domestic production, project implementation and productivity. 6.02 The proposed project represents a less expensive scheme than the Government's original investment program for vocational training (para 2.10). In 1985 when project-financed facilities would be fully operational, the total direct annual output from the expanded system would be about 20,000 skilled and semi-skilled workers (Table 6.1) in 18 different occupations in the con- struction, electrical and mechanical fields. The indirect output from in-plant training would be an additional 10,000 comprising some 2,200 apprentices and 8,000 production workers. By 1985, project training would account for 90% of total output from the government's institutional vocational training system and would meet about 46% of the total estimated domestic skilled manpower requirements for the non-agricultural sectors. The balance would be provided through non-project vocational training institutes and private institutions. 6.03 A major benefit of the project would be the better quality of train- ing given graduates entering the job market. The project would establish training standards developed with the participation of industrial employers hence making training more relevant. The quality of training would be further enhanced by funds provided under the project for consumable training materials to foster practical rather than theoretical instruction; and incremental staff salaries to ensure that sufficient instructors of the requisite quality are trained and employed. The project would institute a shorter, six-month modular- type course, a system which is both cost effective and practical in Pakistan. The proposed coordination of institutional training with in-plant schemes would reinforce this practical orientation. - 38 - Table 6.1: ESTIMATED ANNUAL OUTPUT FROM PROJECT INSITUTIONS AND /a PROGRAMS BY PROVINCE 1982 - 1985 Province/Institutions 1982 1983 1984 1985 Punjab TTCs (11) 5,252 7,604 7,604 8,000 GVIs (13) 3,856 4,320 4,320 4,320 Sind TTCs (4) 1,608 2,508 3,408 3,500 GVIs (2) - 368 1,056 1,056 N.W.F.P. TTCs (5) 1,728 2,352 2,352 2,352 Baluchistan TTCs (1) 528 528 528 528 GVIs (1) 320 320 320 320 Total 13,292 18,000 19,588 20,076 In-Plant Training /b - Apprentices 400 1,000 1,600 2,200 - Production Workers 2,000 4,500 6,000 8,500 /a Assumes output of 75% of training capacity. /b Estimate of number of skilled/semi-skilled workers upgraded through the participation of the enterprise in In-Plant Training. 6.04 The project would also have significant institutional benefits. The creation of a National Training Board, Provincial Training Boards, a National Training Development Institute and an In-Plant Training Advisory Service would help to ensure national coordination, avoid duplication of programs, thereby enabling a more efficient use of resources. They would also assist Pakistan's planning capability, foster the standardization of qualifications throughout the system and promote the evaluation of both institutional and in-plant voca- tional training. The Project would benefit vocational training in general by strengthening training institutions through assistance to the Provincial Labor Departments in the supervision and administration of TTCs and GVIs. Risks 6.05 Problems are possible in the recruitment and retention of qualified instructors. The salary incentive package for instructors (para 3.13) should attract suitably qualified personnel from industry, but alternative and more financially beneficial employment opportunities still exist in the Middle East. The appointment of suitably qualified staff would therefore be closely supervised and remedial action (e.g. increasing the output from instructor training programs) recommended should shortages develop. - 39 - 6.06 In an effort to improve the quality of training, the project would finance expenditure for consumable training materials for five years. The Government would be required to include in the PC-1 budgetary provision, including foreign exchange, to cover its share of these costs during the project life. The risk remains that the Provincial Governments might not provide sufficient funds for training materials after the project is completed, particularly if the shortage of resources remains critical. However, the National Training Board through The National Training Board Fund could assist the Provinces in overcoming these potential shortages. Despite these risks, it is believed that the benefits realized through increased domestic industrial production and workers' remittances from abroad would be sufficient motivation for Government to allocate adequate funds to project facilities so that they operate effectively. VII. AGREEMENTS REACHED 7.01 During negotiations, the Association and the Government agreed on: (a) the staffing pattern and annual budgetary provisions for the National and Provincial Training Boards and the NTDI (para 3.08); and (b) the recruitment schedule for additional instructors and the staffing pattern for the training centers (para 3.13). 7.02 During negotiations, the Government provided-assurances on: (a) IDA review and approval of preliminary designs (paras 3.07, 3.11, 5.07); (b) the introduction of short job entry courses in all project institutions (para 3.10); (c) the establishment of national skill standards, certification and tests (para 3.10); (d) the establishment of advisory committees (para 3.11); (e) a training plan for instructors (para 3.16); (f) the establishment of a monitoring and evaluation system (para 3.20); (g) customs clearance of all imported goods (para 4.05); (h) provision of necessary funds to ensure prompt project imple- mentation (para 4.13); and (i) procedures for an annual audit of project expenditures (para 5.20). - 40 - 7.03 In addition to the usual conditions, the following is a condition of effectiveness: (a) the appointment of a consulting architectural firm whose qualifications, experience and terms and conditions of employment are satisfactory to the Association (para 3.11). 7.04 With the above assurances and conditions, the project constitutes a suitable basis for an IDA credit of US$25.0 million to the Islamic Republic of Pakistan for a term of fifty years including a ten year grace period. t 4 cc-n -carnrv,n wanean -cnexc.r romovrnca, n arocc-a-.--.cwcc nn ncccccccr-r-- c-.nnocr ommnnnn car-n, oroa.Oln'caanoZZC.Cfld,b rrr ama-ar3 owca,0 z-r.rr,coeer Ce o.*rraonnrcQ,at..rarrra.tca.ccra.rr rr-caccn--rOCa. catarrin VOCIC '.rC mnrrrtn,ce £0 I ccc a-car-acm-n a -znocz-c con, cc, 2 2-, CzaC2cnreConncctorocc C amcccccecdxa-r20 S a ccnrm in ccman,ncac,e S I macocr Cr ,q.-rm.-. zccr..rco-..-.mro.-.b--.reC,--. aa-cr-rCrnNCc arn-carm 022 ,-caOo nczzt-.aa. 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JlCOCOo oroc-Ccacc--c-c-a 2-Ocec -avaac--c -ca-n-cacao- 00000 o-ac-eccaa-o S* 220000 0 02-re 5 c - c a a an r -c a cc a v,n Ic 222cr 0-Cc-- aaa. c OoaoCCoocc. - -a.a.caruc -c-C-n- Ca.. c--c…c0-.c0 --e---orncarn a I-a.aao 2.0cc-ace. 0 - ccnJinc. ceo-na. - cacceOc- '0 ticrao- cc- or' 2 Ce' c-rn' - Cc 02cc-c-n a-nato eccc-nocoa f-c -c-c-n I -42 ANNEX 1 Page 2 PAKISTAN FIFTH EDUCATION (VOCATIONAL TRAINtNG) PROJECT Comparative Education Indicators (February 3, 1981) GNP/R0 I INTP :1 TOTAL:t OF PUJBLIC. . . :~PI[. :AV.FRI. :5I:EC * .APITA: OEVUITEDO:UfLLI C IEDUCATIUN :LITER- : Ri. :ConPPI.E- :S1()- :SCH.TLALH:PVIIUBESS-: SFLC :,:Tu- :HIGrLR: Al. : II) EOU.: LoP, RFCUBMEN,T :ACY :ENRULL:TION :DENTS:SALOAY IN:IUN BATE :ENBULL:UbENTS:ENRI)LL: : MARKET: IPOLILC:DEVJjTEO:EXP ALLOCATED: RATE :NATI) :RATE FLJR:PCB IHELATICIN :FROM PRI. :BATIO IPtk :RATILJ; PUP. lORTCFS: EAR. ITfI : TO: :(% UiF :NET :PRI.StrI.:TEACH: TO GNP/ :1L0 SEC. :NET :TEACM- GROSS: YR:MILL_S.I (USs): ONLY) I UU. :081. SEC. HI.:AOULTS): (I) :CYCLEIX):E.R CAPJTA : W (1) lOB 1% ASrA AND UCEANIA AFGHANISTAN ~~~Ip 1843 1 606 1,8 1 1 . 0 7 19 15) 12 290 09 3? 3. 0 u?. 6o 17 1.00 BANGLADESH 73s 85.8) 9OG (. 2 20U.2 SAy 22Y 210Y 230 56X .. a 8I) ... ... 2301) 28 INDIA 75 b2U,01; 1404 2.0 . (IY... .... . .. 296 6500 * . o3o , 29xY 'O050 2.3;4o I NDONES1 A 79 13 . 0 300 ?,.4 9. 1 2bc 524 I54 62 92 168 32 30 7) 1 9 17 2 .0 0 TRANJ 73 33.01) 2,000) 3. 3 12.o 508 BAd 1 28 So 7 7 74A 3? 5 . (8 00A 24 3Ž 4 0.32C Y TRAQ 75 1 1 .54 1, 3951) 6 .7rfIl [. 3VR .. .. ... 2oC 93>0 ... 22 .. . 5oy ŽOL 6,07V JORDAN 77 2 .3 097 4.5K1 7. (K 250 SO n OR 70 970 Al 32 .1) 1 66 22 10.00 KOREA 75 317.0 1 I,42 2.8 1 7.5 55 20 3o 93 1o20 94 zR Q ,9 91 60 45 18 .0 0 LEBANON 72 3,.21) 1,0704 3.5 (B-.c 38 44 10 06 06 oN IQ e,1 63 200 25 Ž3.00 MALAYSIA in 12.t Boo o. 7 2o.o 02 50 15 bOC 95 03 32 3.)7 76 08 20d 3 .0 0 NEPAL 0 0 1 3.3 [ 1 0 2. 4 8,8 2 7 1a 3 6 90 77 00 Ooo 2. 31 . .. ItO 28K .. OMAN 72 0,6F 2, 3006 ,I 7N 3.0' 90 - - 20 200 99 270 7.ou ... 0.00 0 . PAKISTAN Ti 71.31;, 1861 IBR1 7 .5K 45 25 18 2)07 50 99 2 .0 .., 1 70 1 6 o.0 PAPUA N.G. 75 500 uSD 5.0 Io. 30 10t 2oi 3Ž 577 73P' 3 1 ¶1,1 9 0 1 do? 204 0.90? PHILIPPINES 78 0 3. 20 o2O4 ?. 1o 14. 7 3 15 12 Ri7 1040 ... 34 15.0 . .. AnYO . .. 2 I.Oo SINGAPORE 704 2.O36 2,5604 2.70 0.20 SOy 300 17Y i5A 10900 720 310y . .. 994 0400x 24 7.080 SYRIA 75 /.OG 8304 3. 6 b.9 30 29 do 5 3 09 7 0 35 . 8Ž o45 I?1 12. 00 THA I LAND) 7 7 40.1 '4 10( 4.40 20 .0 55 3 0 1 5 84F n3 5)o OS . 7 0 20m 2 5 3 .0 0 TURKEY 73 40.90 1,0104 Y;.hCy 20.OCYT.650... ...340. . . ... ., 24)0 Ž71)Y 5.680 YEmEN 7 3 .,04( SOA 0G O . 4.O Ap 41H 23P ( 0 150 IA O3 ',, 7 d I q 0,05R YEMEN P.D,6. 7n 1. 7 260 t 6.6 ... 5 7 28 0 20( 600 U8 30) So 98 21ox dO 0.1 0 SUMMARY FUR DEVLLOPING CIJUJNTPIES: NUJMBER OF COULNTI6ES: 99 93 91 90 00 t 94 loS 78 90 7 4 0 2 NA6 O 86 RNGE: ----- (. 5- (0.6- (20 - (0- (3- ( 5- (13- Cl- (Ib- (10 0 .. V .1 17.0 1 Oo.o7 96 7 72) So) 99) 133x) 99 1 9 1 2.0 1 100) 07 ) 45) 141.0) QUART)LES:UPPER 1 5,6 21.2 4 9 35 2 2 $7 9S 91I ' a? 0 01 4B 2 5 11. 0 MED IAN:4 a.2 1 6.0t 42 2 6 IVb 57 68 oN 3 4 -4 06 2u 2 ? 3,0 LOWER :3. 0 I 2.4 30 21 10 25 So 33 49 41 01 11 16 1. 0 SYMBOLS:... DATU UA AAIAL *90JMFJLMCNET RCSSUCS - MAGNITUDE NIL OR NEGLIGIBLE 8:1071 N=GUP---- 7 QULESTIONABLE C=ob?? P=INCLUDING Ff1011G6 All) CIILU1`N4S: I AND 2 WORLD) BANK ATLAS *INCLIIOES PART-TIME STUDENTS 0:=1973 Q=CENTRAL GIOVT. ONLY Ok lkOD MISSIONS so COMBINEU oITH PRIMARY EeIBi4 R=MINISTRV IF EDULATION IYDE) j',LY 3 TOJ 10 IbOO MISSIONS ** UNDER REVIEW F=19T5 S=MRVE AND STATE GOVT. ONLY AND/OIR UNESCO G*107o T=EXCLUDING CENTRAL GOiVT. STATISTICAL 8:1977 U=PUBLIC ONLY YEARBUoOK K:197YA VCINCLUDING PRIVATE EXPENUITIRE X=INCLUDINC, OVERAGELI STtiIIENTS Y=ONESCu SOLIRCES COMPARATIVE EDUCATION DATA ARE USEFUL IN THE EVALUATION OF VARIOIUS EDUCATION SYSTEMS AND ANALYSIS IF RELATIVE SIAGES O'F EOUCATIUNAL DEVELOPMENT BETWEEN VARIOUS COUNYTRIES. HONEVEN,UN THE BASIS OF THE PRESENT D)ATA,CRUSS-NATIONAL CII"PAPOSON SHOULO' RE ApPPRACHEO 411H GRE1AT CAUTION. DATA PRESENTED IN THE ABOVE TABLE HAVE BEEN COLLECTED LARGELY BY THE BANK MISS(IONS FROIM LOVERNMENT SOURCES; THE REMAINDER ARE 518FF ESTIMATES fiR DATA FROM UINESCO. EFFORTS HAVE BEEN MADE TO) STANDARD)IZE DEFINI lIONS AND cITHIN -IM)ITS, TO CHECK THE ACCURACY OF THE nATA. 14EVERTHELESS,SUCH DATA ARE STILL IMPERFECT IN SEVERAL RESPECTS AND THE BANK IS WUORKING TiJ IMPROVE THEM PROGRESSTVELY ON THE OCCASION 0OF ITS OPERATIIONAL WORK. IN 1T)F USE OF THESE 0010, THE FOLLOWING U~UALIFICATIIINVS SHOIULD B3E RiORNE IN MIND: (11 EDUCATION" AS DEFINED IN THE TABLE INCLUDES ALL LULCATIOIN AND TRAINING, FORMAL AND N)N-FOAHAL; (21"PRIMARV EDUCATION REFERS TO EDUCATIOJN AT THE FIRST LEVEL AND 'SECONDARY" EDUCATIOIN REFERS To ALL EDUCATION AT THE SECUODARY LEVEL REGARDLESS OF TORE (E.G. GENERAL, TECHNICAL, AGRICULTURALI C3)'LITERACY RATES"(COL.6) ARE 0OFTEN OBTAINED FROlM COUNTRY CENSUSES. IN MANYCOUNTB]LS THET_ ARE ONLY APPKOUAIMATILINS AND IT IS DOUBTFUL THAT ANY UNIFOlRm DEFTNITIIIN, OF 'LTTEBATE" HAS BEEN FOLLO.wED) CONBISTENTLY; CRIPUBLIC EXPENDITURE IN EDUCATInN"CCOLS.3,A AND 51 REFER TOI ALL CAPITAL AND BECLIRRFNT EAPENOITIJIRES DEVOTED Tol EDUJCATION BY PUBLIC AND QUASI-PUBLIC AGENCIES; C5)"FNROLLPENT RATIUIS"(CULS 7, 12 AND 14T REFER TO, SCHOOL YEAR AND) MEAN THE PERCENTAGE OJF ELIGTBLE LHILDREN ENROLLED FULL-TIME IN THE APPROPRIATE SCHOOL, PUjBLIC AND) PRIVATE BY LEVEL. T'HEY ARE OFTEN SUIBJECT TO V sIDE MARGIN uF ERROR IN THE DEvELOPING COUNTM1ES 0W1NG TO) VARIAT ION IN THE ACCURACY [IF BASIC OATA(I ,E. AGE-SPECI(FIC POPULATION ANT ENROLLMENTS) * ENROLLMENT FIGURES FREQUJENTLY ARE HIIGHER THAN THE NOMBER OF STIIODENIS ACTUJALLY IN SCHOOL. nVERAGED STUDENTS WHOSE INCLUSIoN IS INDICATED) BY FOOTNOTES ALSD CAN INFLATE THE RATIOS, - 43 - PAKISTAN ANNEX 2 FIFTH EDUCATION (VOCATIONAL TRAINING) PROJECT Organization of the Ministry of Labor, Manpower and Overseas Pakistanis [ MINISTER AUTONOMOUS AGENCIES OVERSEASWORKERS FOUNDATION l [SECRETARY |[ | OVERSEAS SECRETARY EMPLOYMENT CORPORATION APAK I STAN MANPOWER | I _ ~~~~INSTITUTE JOI NT SECRETARY MANPOWER EMPLOYMENT (DEPUTY SECT) (DEPUTY SECT) ADMINISTRATION PLANNING PROMOTION PAKISTANiS POLICY DIVISION DIVISION DIVISION DIVISION (DIRECTORSGENERAL)Sl (DIRECTOR GENERAL)(DIRECTOR GENERAL) ONALNTRAIANTING BUREA BUREAU OF EMIGRATION AND OVERSEAS EMPLOYMENT (DEPT DIR.) (DEPT DIR. (DEPT. DIR.) (DEPT DIR.) (DEPT. DIR.) (DEPT. DIR.) (DEPT DiR.) (DEPT. DIR.) LAHORE KARACHI PESHAWAR QUETTA LAHORE KARACHI PESHAWAR QUETTA OFFICE OFFICE OFFICOFFICE OF OFFICE OFFICE OFFICE OFFICE World Bank - 22005 I IJ -"" "It, 1 -- 0 00 00 - -0o0000000 --0I00 - 003'I 0000 0000000. oS 00,0000 - - - - - - - - 0 0 0 0 0 0 0 0 s - -.. - 00000 000000000 0960 OSo 0007 000000 00~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~:11 000 0090 000 OOo,0 - - - 00 0 0 0 0 --- 000 00000000000 1900 000 0000 900 00000 00000 900 0 00000000~~~~~~~z~. 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