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235
Population, Labour Force
and Employment16
Pakistanistheworldssixthmostpopulouscountry1.Withanestimatedpopulationof169.9millionasat
endJune 2009, and an annual growth rate (revised) of 2.05 percent, it is expected that Pakistan will
becomethefourthlargestnationonearthinpopulationtermsby2050(Fig16.1).
Withamedianageofaround20years,Pakistanisalsoayoungcountry.Itisestimatedthatthereare
currentlyapproximately104millionPakistanisbelowtheageof30years.Totalworkingagepopulation
is121.01million,withthesizeoftheemployedlabourforceestimatedat52.71millionasof200809.
Table16.1:SelectedDemographicIndicators
2007 2008 2009 2010
TotalPopulation(million) 162.91 166.41 169.94 173.51
UrbanPopulation(million) 56.82 58.74 60.87 63.05
RuralPopulation(million) 106.09 107.67 109.07 110.46
TotalFertilityRate(TFR) 3.9 3.8 3.7 3.6
CrudeBirthRate(PerThousand) 29.1 28.7 28.4 28.0
CrudeDeathRate(PerThousand) 7.9 7.7 7.6 7.4
PopulationGrowthRate(Percent) 2.12 2.10 2.08 2.05
LifeExpectancy(Years) 63.4 63.7 64.1 64.5
Male 62.7 63 63.3 63.6
Female 64.1 64.5 65.0 65.4
Source:SubGroupIIonPopulationProjectionsforthe10th
FiveYearPeoplesPlan201015.
1Pakistanspopulationestimateshaveundergonearecentrevision.Latestestimatesarebasedonrecentprojectionscarried
outbytheSubGroup IIonPopulationProjectionsforthe10th
FiveYearPeoplesPlan201015.Thesewereofficiallyreleased
aftertheStatisticalportionoftheEconomicSurveywenttoprint.Therefore,thepopulationnumbersusedinthischapterwill
not tally with the Federal Bureau of Statistics estimates used to calculate percapita income in Table 1.5 of the Statistical
Appendix.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
CHINA INDIA USA INDONESIA BRAZIL PAKISTAN
Thousands
Fig1:Actualversusprojectedpopulation,selectedcountries
ActualPopulation(2008)
ProjectedPopulation(2050)
Source:World Bank
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EconomicSurvey200910
236
Theproportionofpopulationresidinginurbancentreshasrisento36%.Since1950,itisestimatedthat
Pakistan'surbanpopulationhasexpandedoversevenfold.
Despite a gradual decline in the Total Fertility Rate (TFR), currently close to 4, Pakistan has been a
laggardinachievingabreakthroughonthisfront.
TheleveloffertilityinPakistanremainedconstantat6.8childrenperwomanfrom1961through1987,
population grew as life expectancy increased and fertility rate remained constant. Growth rate of
populationdeclinedduring19902000becausefertilityratedeclinedrapidlyduringthisperiodandlife
expectancystagnated.Fertilityratebeganbydecliningrapidlyinthedecadeof19912000,fallingfrom
6.3 to 4.8 children. The fertility decline started around 1988 with a reduction of approximately 2
childrenperwoman ineachdecade through2000and lateryears, thesubsequent decade 20002009
hasseenaslowingofthefertilitytransitionwithafallfrom4.8toabout4.0.
Thedraftpopulationpolicy200910envisagestoreducefertilitylevelfrom3.56(2009)to3.1birthsper
womanbytheyear2015.Toachievethiscontraceptiveprevalenceratehasto increasefrom30to60
per cent by 2030. Lately the rise in CPR was from 12 to 28 from 1991 to 199798, an average of 2
percentayear,therisefrom1998until2004is2833,lessthanonepercentayear.
Table16.2:TOTALFERTILITYRATESCOMPARISON(19702010)
Country197075 197580 198085 198590 199095
1995
2000200005 200510
Pakistan 7.00 6.80 6.60 6.45 5.67 4.98 4.44 4
Bangladesh 6.85 6.63 5.92 4.89 3.96 3.30 2.80 2.36
India 5.26 4.89 4.50 4.15 3.86 3.46 3.11 2.76
China 4.77 2.93 2.61 2.63 2.01 1.80 1.77 1.77
Source;PopulationDivisionoftheDepartmentofEconomicandSocialAffairsofUnitedNationsSecretariat, World
PopulationProspects:The2008Revision.
(ThetableaboveissourcedfromUnitedNationsstatistics,whichmaydifferfromothercitedfiguresusedelsewhere
inthedocument).
16.1 PopulationOverview
PopulationtrendsarebestexplainedbyCBR(Crudebirthrate),andCDR(Crudedeathrate).Theseshow
the growth and decline of a population per thousand births while IMR (Infant mortality rate) is the
0
1
2
3
4
5
6
7
197075 1984 198691 199296 199700 2006 2007 2009
Fig2: TrendinTotalFertilityRateinPakistan19702009
Source:NationalInstituteofPopulationStudies(NIPS)basedonPDSSurvey2007(FBS)
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Population,LabourForceandEmployment
237
number of newborns dying under a year of age divided by the number of live births during the year
times1000.Theinfantmortalityrateisalsocalledtheinfantdeathrate.Itisthenumberofdeathsthat
occurinthefirstyearoflifefor1000livebirths.Alltheseindicatorshaveimprovedifweseethepattern
from the lastcensus in1998.CBRdeclinedby20.32%,CDRby12.79%and IMRby17.73% taking the
time period from 19992009. This analysis confirms the juncture we are at, in terms of demographic
transition.FertilityandmortalitybothareonthedeclineandwehaveanopportunitytoreapthewidelyacclaimedDemographicDividend.
Growth rates in the above parameters have been fluctuating since 1950. The period of demographic
transition when dependency ratio decreased is clearly marked as the demarcation towards lower
growthratesandthatoccurredfrom1990onwards.Thegrowthrateistodeclinefurtherbringinghope
thatthedemographicdividendwouldmaterialize.
16.2 RegionalDemographics
Pakistandoeswellamongst its immediateneighbours in termsofbasicdemographicsbut thegrowth
rateofPakistanisthehighestamongthecountriesunderreview.Populationgrowthisskewedtowards
theyoungandayouthbulgehasevolvedovertime.
Table16.3:Demographicsofselectedcountries
CountryBirthsper1,000
population
Deathsper1,000
population
Population
million
Growthrate
(percent)
CHINA 12.2 6.9 1,300 0.49
PAKISTAN 25.1 7.1 177.2 1.51
BANGLADESH 23.8 9.1 158.1 1.27
INDIA 21.3 7.5 1,100 1.38
Source:USCensusBureauInternationalDatabase,2010
0
20
40
60
80
100
120
1991 1992 1993 1994 1995 1996 1997 1999 2002 2003 2004 2006 2007 2008 2009
Fig3:TRENDSINCBR,CDR&IMR
CBR
CDR
IMR
Source:PlanningandDevelopmentDivision
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238
16.3 De
Thedem
growth d
populatio
working
age popu
conseque
whenthe
declines.
capita ri
demogra
Pakistan,
finalrepl
The life
economic
income
ainvestin
impacto
force is
dividend
boom in
economic
adult pr
decline b
structure
Combinin
deliverssonperca
growth i
percenti
hasreach
percentb
Theappr
inPakista
youngag
38perce
by2050.
respectivcountry i
projected
Themedi
fertilityle
country,
is more
populatio
urvey20091
ographicDi
graphicdivi
ue to a risi
n. The popu
gegroup,a
lation surpa
nt increase
fertilityrat
During this
ses. This
hic transiti
whenfertilit
cementleve
ycle consum
implication
nd
savings
aealth.Asth
the econo
ood for the
playeda rol
Ireland in t
growth.Thi
oducers tur
efore increa
ofthepopul
g the popul
trikingresultpitaincome
the share
thelate80
edalmost5
eforestartin
ximatelythr
n,according
inthetotal
t,theyoun
Lookingatt
ly,
would
condicate an i
toincrease
an ageof t
vel,thetren
hemediana
rapid. By 20
n.
0
idend
end isaris
g share of
lation bulge
d the rate
sses that of
in theworki
fallsandth
emographic
ccurs in t
n, a situati
isinthepro
l.
ptionmodel
s. The youn
d
at
old
agerelativesize
icbehaviou
economy pr
in the "eco
e 1990s. A
s isa times
n into dep
sing again a
tion,which
ation growth
s.Whilepoprowth,this
f the popul
toearly90s
9percent in
g todecline
eepercento
to themedi
population
population
e lowandh
mprise
youncreasing m
oanadult3
epopulatio
willcontinu
gewouldbe
50 Crude bi
intherate
orking age
enters and
fgrowthof
total popul
g age ratio.
eyouthdep
opportunity
e last sta
on about t
cessoffallin
suggests th
need inve
s
there
is
a
nofeachoft
r associated
ovided it is
nomicmirac
the propor
ecificwind
ndants as
fter year 20
ouldthenh
rate and t
ulationgrowffectiscoun
tion that is
,thepropor
2006.Thes
again, ther
ldagepopul
umvariants
ithdecreasi
isexpectedt
ighvariants
g
people
by
dian age of
yearsby20
inPakistan
einfuture.I
around29y
rth rate (CB
ofeconomic
people in a
stays in the
theworking
tion, with a
This occurs
ndencyrate
,outputper
ges of the
happen in
gtowardsits
at different
tment in h
eed
for
retireseagegro
withdiffere
put to use.
le"of theE
tion of wor
wofopport
time passes
45. This inc
aveabigger
he growth r
thhasalargteractedby
economicall
ionofworki
areofwork
asonbeing
tionshare
cenarioof t
ngfertility,
ocomprise
it isbelieved
2050.
These
the populat
0(medium
started to i
thedemogr
arsby2050,
R) is expect
age groups
alth and ed
ment
incompschangei
t ages also
Ithas been
stAsianTig
ers rises or
unity,and is
. Crude dea
rease would
proportiono
ate of the
andstatistiastatistically
y active.Wi
ngagepopul
ingagepop
thegrowing
ouldincreas
eUnitedN
illshowade
nly23perc
that18and
trends
in
ferion. From a
ariant).
ncrease in t
aphictransit
comparedt
ed to almos
in a populati
ucation, adu
e
and,
againthepopulat
changes. Th
argued that
rs,andeve
falls, so do
notgoing t
h rate (CDR
be due to
felderlypop
conomically
callysignificsignificantp
h the perce
ation(1564
lationwillp
shareofold
etoalmost1
tions (2005)
cliningtrend
ntoftheco
27percent
tility
and
momedian age
e1990s an
ionfollowsa
38yearsift
t half, at 1
on have dif
lts supply la
a
requiremion,theresp
us a larger l
the demogr
in theeco
opportuniti
last foreve
) will contin
the changin
lation.
active popu
ntnegative
ositiveeffect
tage share
years)inPa
eak in2045
ragepopul
0percentby
.Theshare
.Fromthec
untryspopu
ofthepopul
rtality
rates
iof 20 years
,withdecr
slowerpath
hefertilityd
births per
erent
bour,
nt
to
ctive
bour
aphic
omic
s for
.The
ue to
age
lation
effect
from
of 52
istan
to68
ation.
2050
f the
rrent
lation
ation,
n
the
, it is
asing
inthe
cline
1000
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239
Pakistanisalsoexperiencingadwindlingdependencyratio.Reduceddependencyratiosmeanthatthe
proportionofthepopulation inworkingages(1564)continuestoincreasewhilethose intheyounger
ages (014) decrease. The proportion of the elderly in the total population is projected to show a
substantial increaseafter2025.Thedecline independencyratiocanaffectpercapitaoutput through
severalintermediatechannels.First,thenumberofproducerssurpassestheconsumerssecondlysavings
increase which can make capital more available and thus relatively cheaper. It facilitates increasedsavings and investment, at both micro and macro levels. At the micro level, parents with fewer
dependentchildrencanmorereadilyaffordproductive investments,andat themacro levelresources
otherwise needed tosupportan increasingpopulation can beput to directly productive investments.
Countriescanmovefrombeingheavilydependentonexternalfinancetoapositionofrelativefinancial
selfsufficiency.
A second channel is through improving the quality of human capital. Education affects mortality and
fertilityrates.Notonlythepopulationsizebuttheagecompositionisalsoalteredbyeducation.While
currentpopulationandreproductivehealthpoliciesonlyfocusonthegapbetweentheactualandthe
desiredfamilysize, femaleeducationcanfosterastrictlyvoluntaryfertilitydecline.TheTFRisexpected
to continue to fall, reaching a near replacement level by 2050, according to the medium variant
projections[UN(2005)].
The above discourse boils down to one point: capitalizing on the demographic dividend demands
focusedpolicy.Flexiblelabourmarkets,anopeneconomy,provisionofwelfareandpolicyforthefuture
ageingpopulation,areessentialrequirementsforthedemographicdividendtomaterialize.
Source:UScensusbureauInternationalDatabase
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240
The expansive typepopulation pyramid shown above depictsa greaterpreponderanceofyoung than
old in Pakistans population. The youth bulge has been described by some as a situation in which 20
percentormoreofapopulationis intheagegroup15to24years. Itistheresultofatransitionfrom
hightolowfertilityabout15yearsearlier.Theyouthbulgeconsistsoflargenumbersofadolescentsand
young adults who were born when fertility was high followed by declining numbers of children born
afterfertilitydeclined.
16.4 AgeCompositionofPopulation
Impactofchangingagecompositionshasalreadyoccurredbecauseofthegradualfertilitydeclinethat
hasbeenunderwayinPakistansincethelate1980sandearly1990s.A wayoflookingatthe changesin
agestructureistoexaminedependencyratios,i.e.,theratioofpersonsunder15andover64topersons
between15and64.Thisratio isan indicationofhowmuchoftheyoungpopulation is increasingand
thatofold isdecreasing.Thedependencyratiohasalreadydecreasedfrom0.86to0.75 inthefifteen
yearssincefertilitybegantodeclinein1990.Theratiowillcontinuetodeclineforseveralmoreyearsto
beyond2030,mainlybecauseofthereductionsintheproportionsofthepopulationattheyoungages
of 014, and a continuing increase in the working age population. Age is the foremost criteria of
harnessingthepotentialofeconomicgrowththroughthelabourforceparticipation.
Table16.4:PopulationbyAgeGroups;Pakistan Projection(000s)
AGEGROUP 2005 2010 2015 2020 2025 2030
TOTALM+F 155,772 173,383 192,262 211,397 229,377 246,272
MALES
04 9,562 11,886 12,429 12,711 12,350 12,062
59 10,047 9,287 11,631 12,205 12,513 12,180
1014 10,130 9,936 9,210 11,554 12,133 12,446
1519 9,897 10,047 9,878 9,161 11,503 12,084
2024 7,885 9,767 9,958 9,801 9,089 11,428
2529 6,240 7,729 9,655 9,859 9,706 9,001
30
34
5,077
6,099 7,627 9,555 9,763
9,6173539 4,460 4,957 6,008 7,536 9,459 9,673
4044 4,042 4,349 4,869 5,919 7,440 9,354
4549 3,465 3,926 4,249 4,770 5,812 7,320
5054 2,796 3,331 3,795 4,120 4,637 5,664
5559 2,035 2,633 3,155 3,609 3,932 4,440
6064 1,543 1,854 2,416 2,911 3,346 3,662
6569 1,199 1,341 1,625 2,133 2,587 2,992
7074 841 973 1,100 1,346 1,782 2,179
75+ 921 1,077 1,271 1,482 1,796 2,315
TOTAL 80,140 89,190 98,874 108,670 117,849 126,417
Source: WorldBank'sWorldDevelopmentIndicators(WDI)database
16.5 PopulationProjections
Below are the population projections for Pakistan through to 2030. The term Medium variant means
thatifthepopulationincreasegoesatabalancedpacethisscenariowouldunfold,Highandlowvariant
mean ifthechangeoccursatahighfertilityora lowfertilitypace.Constant fertilityvariantdescribes
stablefertilitychange.
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241
Table16.5:PakistanPopulation20102030 (Thousand)
YearMedium
variant
High
variant
Low
variant
Constant
fertility
variant
2010 184753 184753 184753 184753
2015
205
504
207
325
203
683
207
918
2020 226187 231276 221098 234354
2025 246286 255820 236751 263398
2030 265690 280054 251345 294812
Source:PopulationDivisionoftheDepartmentofEconomicandSocialAffairsoftheUnitedNationsSecretariat,
WorldPopulationProspects:The2008Revision
Agethatdividesthepopulationintwopartsofequalsizeiscalledmedianage,thatis,thereareasmany
personswithagesabovethemedianastherearewithagesbelowthemedianage.
Taking five year period of 201015 and 202530, it is predicted by the United Nations that life
expectancy
in
Pakistan
would
increase
from
68
to
71.9.
The
population
growth
rate
would
decrease
to
1.52, and total fertility rate to 2.70. The crude birth rate (CBR), crude death rate (CDR) and infant
mortalityrate(IMR)areprojectedunderthisscenariotodeclineto21.4,5.6and42.2respectively.
16.6 URBANIZATION
During 19502008, Pakistan's urban population
expanded over sevenfold, while the total
populationincreasedoverfourfold.Dramaticsocial
changes have led to rapid urbanization and the
emergence of megacities. Pakistan is the most
urbanized nation in South Asia with city dwellers
makingup36%of itspopulation, (2008).While the
urbanizationrate is3%(200510).Demographically,
urbanizationisgaugedbothinabsoluteandrelative
terms as growth of cities within a defined area.
According to base case projections, the year 2030
will be a major landmark in Pakistans
demographics. For the first time in its history, the
urbanpopulation in Pakistanwill constitute50% of
thetotal.
Itisbelievedthattherateishighestwhenindustrializationtakesplaceandthegraphshowsthatinthe
formativeyearsofPakistantheratewashighsincetheurbanpopulationhadampleopportunitiesand
thetrendcontinuedevenintheeighties.Theshifttourbanareasisstilltakingplacebutisconsideredto
besmallascomparedtothatinmanyotherpartsoftheworld.
Table16.6:MEDIANAGE
Pakistan
Medianage(years)
Mediumvariant20102030
Year Medianage
2010 21.3
2015 22.52020 23.7
2025 25.0
2030 26.4
Source:PopulationDivisionoftheDepartmentof
EconomicandSocialAffairsoftheUnitedNations
Secretariat,WorldPopulationProspects:The2008
Revision
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242
MostprojectionsareoftheviewthattherateofurbanizationinPakistanwillcontinuetoincrease.This
isduetotheinbuiltmomentumofpasthighgrowthrates.Morethanhalfofthetotalurbanpopulation
of Pakistan (2005) lived in eight urban areas: Karachi, Lahore, Faisalabad, Rawalpindi, Multan,
Hyderabad,GujranwalaandPeshawar.Between2000and2005,thesecitiesgrewattherateofaround
3percentperyear,anditisprojectedthatthisgrowthratewillcontinueforthenextdecade.
Table16.7:PopulationofMajorCitiesofPakistan
CITY 1998census 1981census CAGR(%) 2010
KARACHI 9,339,023 5,208,132 3.49 13,386,730
LAHORE
5,143,495
2,952,689
3.32
7,214,954
FAISALABAD 2,008,861 1,104,209 3.58 2,912,269
RAWALPINDI 1,409,768 794,834 3.43 2,013,876
MULTAN 1,197,384 732,070 2.93 1,610,180
HYDERABAD 1,166,894 751,529 2.62 1,521,231
GUJRANWALA 1,132,509 600,993 3.79 1,676,357
PESHAWAR 982,816 566,248 3.29 1,386,529
QUETTA 565,137 285,719 4.09 871,643
ISLAMABAD 529,180 204,364 5.7 972,669
Source:PopulationCensusOrganization,EAWing
16.7 MegaCities
Mega cities aredefinedashaving apopulation in excessof10million peopleoraminimum level for
populationdensity(at least2,000persons/squarekm).Thesemegacitiesarebeingagglomeratedata
highrate.In1950,only29.8percentofpeoplelivedinurbanareaswhereasby2020,anestimated57
percentwillliveincities.
0 10 20 30 40 50
2015
2020
2025
2030
Fig4:ProjectionsofpopulationinurbanareasofPak(%)(20152030)
Source:WorldUrbanizationProspects 2009
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Populationisnottheonlydistinguishingfeatureofmegacities;theirindispensablefunctionalityisalso
thecaseinpoint.Megacitiesaretheproductofthedemandsofcurrenteconomicera.Acriticalnumber
of cities are postindustrial production sites for the leading industries of our period, finance and
specializedservices,theyarenationalortransnationalmarketplaceswherefirmsandgovernmentscan
buyfinancialinstrumentsandspecializedservices,theyfunctionascentresforthecoordination,control
andservicingofglobalcapital.
According to Marshall (1890), the geographical concentration of economic activities can result in a
snowball effect, where new entrants tend to agglomerate as they benefit from higher diversity and
greaterspecializationinproductionprocesses.Workersalsobenefitfrombeinginanagglomerationas
theycanexpecthigherwagesandhaveaccesstoalargerchoicesetofemployers. Manynewmarkets
andinvestmentopportunitiesin,forexample,infrastructure,transportation,healthcare,educationand
recreation willunfold. Handledwell, urbanexpansioncanbe thekey to continuingeconomic success
(McKinsey).
The population of Karachi was about 105,000 inhabitants by the end of the 19th century, with a
cosmopolitanmixofdifferentnationalities.NongovernmentalandinternationalestimatesofKarachi's
populationrunanywherefrom12millionto18million.Thecity'spopulationisgrowingatabout5%per
year (mainly as a result of ruralurban internal migration), including an estimated 45,000 migrant
workers coming to the city every month from different parts of Pakistan while the overall rate of
urbanizationforPakistanis3%.
Table16.8:TOP15MEGACITIESOFTHEWORLDIN2010
RankOrder City CountryPopulation
(millions)
1 Tokyo Japan 36.67
2 Delhi India 22.16
3 SaoPaulo Brazil 20.26
4 Mumbai(Bombay) India 20.04
5 MexicoCity Mxico 19.46
6 NewYork UnitedStatesofAmerica 19.43
7 Shanghai China 16.58
8 Kolkata(Calcutta) India 15.55
9 Dhaka Bangladesh 14.65
10 Karachi Pakistan 13.12
11 BuenosAires Argentina 13.07
12 LosAngles UnitedStatesofAmerica 12.76
13 Beijing China 12.39
14 Riodejaneiro Brazil 11.95
15 Manila Philippines 11.63
Source:WorldUrbanizationProspects:The2009 Revision.
16.8 PakistaniDiaspora
There are approximately 7 million Pakistanis living abroad, remitting close to US$8 billion annually
through formal channels to Pakistan. Worker remittances are the second largest source of foreign
exchangeafterexports.ItisbelievedthateconomicmigrantsconstituteavastmajorityofthePakistani
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244
diaspora.
Remittances,whichareusuallysenttoimmediatefamilymemberswhohavestayedbehind,areamong
themostdirectbenefitsfrommigration;theirbenefitsspreadbroadly into localeconomies.Theyalso
serve as foreign exchange earnings for theorigin countries of migrants. In 2007,US$5,998million in
remittances
were
sent
to
Pakistan.
Average
remittances
per
person
were
US$
37,
compared
with
the
averageforSouthAsiaofUS$33.
Table16.10:Remittances
Totalremittanceinflows(US$millions) Remittancespercapita(US$)
India 35,262 Luxembourg 3,355
Bangladesh 6,562 SriLanka 131
Pakistan 5,998 Nepal 61
SriLanka 2,527 Bangladesh 41
Nepal 1,734 Pakistan 37
India 30
Iran
(Islamic
Republic
of)
16Globalaggregates
SouthAsia 53,201 SouthAsia 33
World 370,765 World 58
Source:HumanDevelopmentReport2009,UNDP
Most of the worlds 195 million international migrants have moved from one developing country to
anotherorbetweendevelopedcountries.Pakistanhasanemigrationrateof2.2%.Themajorcontinent
ofdestinationformigrantsfromPakistanisAsia,with72.5%ofemigrantslivingthere.
Table16.11:Emigrants
Originofmigrants Emigrationrate(%) Majorcontinentofdestinationformigrants (%)
Afghanistan 10.6 Asia 91.4
Nepal 3.9 Asia 95.0
Pakistan 2.2 Asia 72.5
Iran 1.3 NorthernAmerica 39.6
India 0.8 Asia 72.0
Globalaggregates
SouthAsia 1.6 Asia 78.0
World 3.0 Europe 33.4
Source;HumanDevelopmentReport2009,UNDP
The United States is host to nearly 40 million international migrants more than any other country
thoughasashareoftotalpopulationitisQatarwhichhasthemostmigrantsmorethan4inevery5
peoplearemigrants.InPakistan,thereare3,554thousandmigrantswhichrepresent2.1%ofthetotal
population.
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245
Table16.12:Immigrants
Destinationof
migrants
Immigrantstock
(thousands)Destinationofmigrants
Immigrantsasashareof
population(%)2005
UnitedStates 39,266.5 Qatar 80.5
India 5,886.9 Bhutan 5.7
Pakistan 3,554.0 Pakistan 2.1
Iran 2,062.2 Iran 2.9
Bangladesh 1,031.9 Nepal 3.0
Maldives 3.2 China 0.0
Afghanistan 0.4
Globalaggregates
SouthAsia 13,847.0 SouthAsia 0.9
World 195,245.4 World 3.0
Source;HumanDevelopmentReport2009,UNDP
16.9 PolicyInitiatives
KeyInitiatives:
Tocopewiththeevolvingdemographicchallenges,thedraftNationalPopulationPolicy2010seeksto;
PursuePopulationStabilizationgoalthroughearlycompletionoffertilitytransition.
Facilitate realization of demographic dividend by linking fertility transition process with skills
promotionandemploymentgenerationpolicies.
Attainabalancebetweenresourcesandsizeofpopulation.
Increaseawarenessoftheadverseconsequencesofrapidpopulationgrowthatalllevel.
Promotesmallfamilynorms.
Toachievethesegoals,thepolicyaimsatthefollowingkeyobjective.
ProvideaccessoffamilyplanningandReproductiveHealthServicestotheremotestandpoorest
areasofthecountryby2015.
Reduceunmetneedforfamilyplanningfrom25to20percentby2015.
Reducefertilitylevelfrom3.56(2009)to3.1birthsperwomanbytheyear2015.
Ensurecontraceptivecommoditysecurityforallpublicandprivatesectoroutletsby2015.
Improvematernalhealthby:
Encouragingbirthspacing(ofmorethan36months),
Reducingincidenceoffirstbirth(inageslessthan18),and
Reducingproportionofmothersgivinglatebirth(agesbeyond34)
Attainreplacementlevelfertilityi.e.2.1birthsperwomanby2030
Achieve universal access to safe and quality reproductive health/ family planning services by
2030
Reduceunmetneedforfamilyplanningfromexisting25to5percentby2030
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Achievecontraceptiveprevalenceratefrom30to60percentby2030
16.10 LabourForceAndEmployment
Introduction:
Pakistanisthe10thlargestcountryintheworldaccordingtothesizeofthelabourforce.Onthebasisof
aparticipationrateof32.8percent,asperthe latestLabourForceSurvey200809,the labourforce is
estimated at 53.72 million. Of the total labour force, 50.79 million are employed while 2.93 million
personsareunemployed,resultinginanunemploymentrateof5.5percent.
If we see the unemployment scenario in the past,
then compared to historical trend of 3 percent,
unemployment levels remained around 5 percent
post 19931999,butinFY02asharpincreaseof8.27
percent was seen. The rate fell during 200307.
However, reaching a low point of 5.2 percent in
200809 it rose again to 5.6 percent in FY09. There
hasbeenadeclineinunemploymentratesince2003
04 accompanied by a substantial rise in the unpaid
familyhelpersparticularlyfemales.
Economicgrowthcontributestorealwageincrease,povertyalleviationandreductioninunemployment
rate. In the labour market the forces of supplyand demand jointly determine price (in this case the
wagerate)andquantity(inthiscasethenumberofpeopleemployed).Itisinterestingtonotethatthe
triggers to labour demand have been remittances by overseas Pakistanis as well as the structure of
economyasrepresentedbyownershippatternoflandholdingsandcontroloverfinancialassets,bothof
whichhaveimplicationsforemployment.
With the demographic transition taking place in Pakistan, youth unemployment takes centre stage.
Youthshouldbeabsorbedproductivelywellbeforetheperiodwhenoldagedependencythreatensthis
potential.Consider that the labour force isgrowingeveryyearbut theopportunities foremployment
aredecliningandthattooatafastrate.Thegoodnewsthough isthatyouthunemployment isbelow
theglobalaverageinourcountry.
Trendsinagespecificunemploymentratesdifferconsiderablyformalesandfemalesinthelabourforce.
Male unemployment has increased in the last two decades whereas female unemployment has
decreased. The gap between the projected female working age population and the projected labour
force is likely to increase sharply over time. The reduction in this gap is desired. Although
unemployment among females has historically been higher than among males, the gender gap has
narrowedconsiderablyovertime.
16.11 KeyIndicators
In200809, theestimated labour force grew by3.7%.Thegrowth in female labour force wasgreater
thanmalelabourforceandconsequentlytheincreaseinfemaleemploymentwasgreater. Employment
comprisesallpersonstenyearsofageandabovewhoworkedat leastonehourduring thereference
periodandwereeitherpaidemployedorselfemployed.Thelabourforceisgrowingandthegrowth
inFY09isgreaterthanthatinFY08.
SIZEOFLABOURFORCE LABOURFORCE
RANK COUNTRY (million)
1 CHINA 812.7
2 INDIA 46.7
8 BANGLADESH 72.5
10 PAKISTAN 55.8
33 NEPAL 18
56 SRILANKA 8.1Source:CIAFactbook
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247
Indicators
LabourForce(Inmillions)
200708
200809
Total 51.78 53.72
Male 40.82 41.91
Female 10.96 11.81
Source:LabourForceSurvey200809
Unemploymentrateishigherascomparedtothelaststatistics.Thechangeisduetofemalethanmale
and
urban
than
rural
unemployment
rates.
Table16.13:CivilianLabourForce,EmployedandUnemployedforPakistan (inmillions)
0304 0506 0607 0708 0809
LabourForce 45.50 50.05 50.33 51.78 53.72
Employed 42.00 46.95 47.65 49.09 50.79
Unemployed 3.50 3.10 2.68 2.69 2.93
Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics
16.12 LabourForceParticipationRates
Labourforceparticipationrateisdividedintotwocategoriesi.ecrudeandrefined.Crudeactivityrateis
the currently active population expressed as percentage of the total population in Pakistan. Refined
activityrateisthecurrentlyactivepopulationexpressedasapercentageofthepopulation10yearsand
above.Thisrateenablesinternationalcomparisonbyfactoringintheeffectofagecomposition.Justas
crudeactivityrate,therefinedparticipationratealsohadnomajorchangeconsideringthe increasein
totalpopulation
Table16.14:EmploymentTrendandChangesfrom199697and200809(million)
YearPakistan Rural Urban
Employed Change Employed Change Employed Change
199900 36.32 2.19 25.55 1.68 10.77 0.01
200102 38.88 2.56 26.66 1.11 12.22 1.45
200304 42.00 3.12 28.81 2.15 13.19 0.97
2005
06
46.95
4.95
32.49 3.68 14.46
1.27200607 47.65 0.70 33.11 0.62 14.54 0.08
200708 49.09 1.44 34.48 1.37 14.61 0.07
200809 50.79 1.70 35.54 1.06 15.25 0.64
Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics
Augmented activity rate is based on probing questions from the persons not included in the
conventionalmeasureoflabourforce,tonetinmarginaleconomicactivitieslikesubsistenceagriculture,
0
10
20
30
40
50
60
2003-04 2005-06 2006-07 2007-08 2008-09
million
Fig-3: Labor force, Employed & Unemployed(2003-09)
Labor force Employed Unemployed
Source: Variousissuesoflabourforcesurveys,FBS
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248
ownconstructionofonesdwellings.Participationratesuggestsfractionalimprovementacrossareaand
gender.However,improvementismoreaccordingtoareai.einurbanthaninruralareasandbygender
i.einfemalesratherthaninmales.
Indicators 200708 200809 Indicators 200708 200809
Crude
Activity
(Participation)
Rates
(%) Refined
Activity
(Participation)
Rates
(%)Pakistan Pakistan
Total 32.2 32.8 Total 45.2 45.7
Male 49.3 49.6 Male 69.5 69.3
Female 14.0 14.9 Female 19.6 20.7
Augmented Augmented
Total 38.2 38.8 Total 53.6 53.9
Female 26.3 27.0 Female 36.7 37.5
Rural Rural
Total 33.8 34.3 Total 48.8 49.2
Male 49.1 49.2 Male 71.2 71.0
Female 17.9 18.5 Female 25.6 26.4
Augmented
AugmentedTotal 42.3 42.7 Total 61.0 61.2
Female 35.1 35.6 Female 50.2 50.7
Urban Urban
Total 28.9 29.9 Total 38.6 39.3
Male 49.9 50.4 Male 66.6 66.3
Female 6.2 7.6 Female 8.4 10.1
Augmented Augmented
Total 30.0 31.0 Total 40.1 40.8
Female 8.6 9.9 Female 11.5 13.1
Source:LabourForceSurvey200809
Population growth and incidentally working age population growth occurred, due to demographictransition, according to which there appears to be a youth bulge and Pakistan has a considerable
numberofthepopulationwhichisnotdependant.Pakistan hasthecapacitybutisthereassimilation?
Table16.15:Population,LabourForceandLabour ForceParticipation(LFP)Rates
YearPopulation(million) Labour Force(million) LFPRate(percent)
Total Workingage* Total Increase Crude Refined
199798 130.58 88.52 38.20 1.90 29.3 43.3
199900 136.01 92.05 39.40 1.20 29.4 42.8
200102 145.80 99.60 42.39 2.99 29.6 43.3
200304 148.72 103.40 45.23 2.84 30.4 43.7
200506 155.37 108.79 50.05 4.82 32.2 46.0
200607 158.17 111.39 50.33 0.28 31.8 45.2200708 160.97 114.64 51.78 1.45 32.2 45.2
200809 163.76 116.63 52.68 0.90 32.8 45.7
Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics
*Population10yearsandaboveisconsideredasworkingagepopulation.
16.13 EmploymentbyStatus
Employmentbystatusindicatesthepositiononeoccupiesintheworkforce.StatusinEmploymentrefers
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Population,LabourForceandEmployment
249
to the type of explicit or implicit contract of employment of the person with other persons or
organization.Statusofaneconomicallyactiveindividualiswithrespecttohisemployment.Thereisless
changeinstatusduetothefactthatinPakistanthereisalargeinformalsector.
Table16.16:EmploymentStatusbyRegion (Millions)
2007
08 2008
09*
Total Urban Rural Total Urban Rural
Employers 0.46 0.34 0.12 0.47 0.34 0.13
Selfemployed 16.77 4.51 12.26 17.06 4.59 12.47
UnpaidfamilyHelpers 14.20 1.72 12.48 14.45 1.75 12.70
Employees 17.66 8.04 9.62 17.96 8.18 9.78
Total 49.09 14.61 34.48 49.94 14.86 35.08
Source:FederalbureauofStatistics *Estimated
Employmentcategoriesaredefinedandtheirchangeduringtheyearisasfollows:
Employeeisapersonwhoworksforapublicorprivateemployerandreceivesremunerationinwages,
salary, commission, tips, pay in kind. Employees are divided into: Regular paid employees with fixedwage,Casualpaidemployee,Paidworkerbyworkperformed,Paidnonfamilyapprentice.Overtheyear
200809employeesincreasedbothinruralandurbansettings.
Employer is a person working during the reference period, on ownaccount or with one or a few
partners at a selfemployment job with one or more employees engaged on a continuous basis.
Employersalmostremainedthesameduring200708and200809.
Selfemployment job isa jobwhere theremuneration isdirectlydependentupon theprofits,or the
potentialprofits,derivedfromthegoodsandservicesproduced.Selfemploymentincreasedin200809.
Thisreiteratesthefactthatinformalizationofoursectorsistakingplace.
Unpaidfamilyworkerisapersonwhoworkswithoutpayincashorinkindonandenterpriseoperated
byamemberofhis/herhouseholdorotherrelatedpersons.Thiscategoryalsoincreasedshowingthat
thisportionoftheworkforceisjustliketheunemployedonlyworseoff.
The increase inselfemployedpersonsaswellasunpaidfamilyworkers indicatesthatactivitiesatthe
household level are increasing. Employment status shows marginal changes i.e decrease in the
comparativeprofilesofemployeesandselfemployedworkerswhileincreaseinthecaseofemployers.
In the Table 16.17 can be observed that the selfemployed males have decreased while female self
employmenthasincreased.
Table16.17:EmploymentStatusbySex (%)
200708 200809
Total Male Female Total Male Female
Employers 0.9 1.2 NA 1.2 1.5 0.1
Selfemployed 34.2 39.6 12.8 33.3 38.7 13.1
UnpaidfamilyHelpers 28.9 19.7 65.0 29.7 20.2 65.0
Employees 36.0 39.5 22.2 35.8 39.6 21.8
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source:LabourForceSurvey200809
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250
16.14 E
Agricultu
economy
verge of
residing i
towards
Consideri
and rela
sectors
Construct
showdec
Table16.1
Sector
Agriculture
Manufactu
Constructi
Transport
Services
Others
Total
16.15 E
Thefollo
seenthat
thatthisipercenta
expresse
Onecan
orsex.B
andSind
employe
Table16.1
AREA/PRO
Pakistan
Rural
Urban
Punjab
Sindh
KhyberPu
Balochista
urvey20091
ploymentb
ewasand s
but as pop
change an
n urban are
thersectors.
ng Table 16.
ed activitie
the figures
ion shows
line
: EmployedL
ring
n
ploymentb
ingtablegi
employedi
sinnowaycetermsand
asapercen
lanceatTab
tthechang
whileequi
personsisg
:Employed P
VINCE
htoonkhua
0
Sectors
till is the lar
ulation distr
50% of th
as emphasis
18, the incr
is evident
are close
ome increa
bourForceby
Total
44.6
13.0
6.3
5.5
13.7
2.3
100.00
Province
esacompar
dividualsinc
onnectedwiemployedt
tageofthec
leno16.19
ismorepro
alentlytobo
reatestinPu
akistanandPr
gest sector
ibution is o
e people w
is going to
ase inagric
while for
to each
se while se
Sectors(%)
200708
Male
36.9
13.3
7.8
6.8
14.4
2.9
100.00
isonbetwee
reasedinnu
hunemploytalisinmilli
rrentlyactiv
ndseethat
nouncedinr
thgendersi
jabthenSin
vinces
T
43
1
2
1
5
2
f the
n the
ill be
shift
lture
other
ther.
rvices
Female
75.0
11.8
0.4
0.2
10.6
0.2
100.00
Source:Labou
FY08andF
mberandso
entratewons.Unemp
epopulation
heemploye
uralthanur
nKhyberPu
dh,Khyber
2007
tal Ma
.09 39.
.48 25.
.61 13.
.97 22.
.26 10.
.73 4.6
.13 1.9
6.6
5.2
Fig
A
C
S
Total
45.1
13.0
6.6
5.2
13.66
0.10
100.00
rForceSurvey
09interms
didpopulati
ichincreaseloymentrate
.
totalison
anareaand
htoonkhua
ukhtookhua
EM
08
le Femal
6 10.039 8.69
7 1.34
7 6.9
3 1.83
5 1.08
1 0.22
13
13.66
4:EmployedLa
griculture Ma
o nstr uction Tra
ervices Ot
2008
Mal
37.3
13.3
8.3
6.6
11.1
2.9
100.0
00809 Feder
ofareaand
on.Itshould
duringtheistheunem
herise,beit
owesmore
ndBalochist
andtheleas
PLOYED
Total
50.79
35.54
15.25
29.95
12.72
5.97
2.15
Source:Labo
borforcebySe
nufacturing
nsport
hers
Sou
9
Fem
74.
11.
0.4
0.2
11.
0.3
100.
alBureauofSt
rovince.Itc
bebornein
eriodsinceiployedpopu
accordingt
omalesinP
an.Thecha
inBalochist
(
200809
Male
40.04
26.46
13.59
22.68
10.67
4.77
1.92
urForceSurve
45.1
0.1
tors(%)
rce:LabourForce
2
ale
0
tistics
anbe
mind
tisinlation
area
unjab
ge in
n.
illion)
Female
10.75
9.09
1.66
7.27
2.05
1.2
0.23
200809
Survey
00809
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Population,LabourForceandEmployment
251
16.16 FORMALANDINFORMALSECTORS
During the past years it is observed that there has been a large amount of informalization in the
agriculture sector. There has been a trend of selfcultivation and a decline in share tenancy.
Informalizationisnotjustrestrictedtoagriculture,itisontheriseinnonagriculturesectorsaswell.The
shareofformalsectoremploymentshrunkfrom35percentto27percentincaseofmalesandfrom33
percent to 27 percent in case of females from 20002008. Trade and services in urban small scale
manufacturing areas attracted the labour market and enhanced informalization of the urban labour
market.
Table16.20supportsthefindingsthat informalization isrisingandthat it ismorepronounced inrural
thanurbanareas.Sametrendfollowsaccordingtogender,malesareshiftingfromtheformalsectorso
arefemales.
Table16.20:FormalandInformalSectorsDistributionofnonAgricultureworkers(%)
Sector 200708 200809
Total Male Female Total Male Female
Total 100.0 100.0 100.0 100.0 100.0 100.0
Formal 27.2 27.2 27.4 26.7 26.6 27.6
Informal 72.8 72.8 72.6 73.3 73.4 72.4
Rural 100.0 100.0 100.0 100.0 100.0 100.0
Formal 24.9 25.1 23.2 23.8 24.0 22.2
Informal 75.1 74.9 76.8 76.2 76.0 77.8
Urban 100.0 100.0 100.0 100.0 100.0 100.0
Formal 29.5 29.2 32.5 29.4 29.1 32.8
Informal 70.5 70.8 67.5 70.6 70.9 67.2
Source:Labour ForceSurvey200809FederalBureauofStatistics
16.17 Unemployment
The global economic turmoil has created
unemployment around the world and in Pakistan
2.93 million of the work force is unemployed.
Mismatch in job and skills as well as the temporary
natureofmostjobsisproblematic.Certainsegments
ofthelabourmarketdonotgivesecureemployment.
There has been a positive increase of employed
labour force in both urban and rural settings;
however it should be borne in mind that the
populationincreasehasbeentremendoustoo.
Unemployment rate is the unemployed population
expressed as a percentage of the currently active
population. while Currently Active Population
comprises all persons ten years of age and above
who fulfill the requirements for including among employed or unemployed during or unemployed
duringthereferenceperiodi.eoneweekprecedingthedateofinterview.Unemploymentratehasbeen
decreasingovertheyears.Theproportionofunemployedtothecurrentlyactivepopulationhasbeen
Table16.21:AgeSpecificUnemploymentRate(%)
AgeGroupTotal
200708 200809
1014 9.0 9.3
1519 8.7 9.5
2024 6.8 7.3
2529 4.1 4.3
3034 2.3 2.6
3539 1.5 1.7
4044 1.6 1.5
4549 2.5 2.4
50
54 3.7
4.65559 6.6 6.1
60yrs&above 12.5 12.7
Source:LabourForceSurvey,200809,
FederalBureauofStatistics
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252
decreasingwiththeexceptionof200102whenitincreased.Usuallyitisseenthatunemployedlabour
force decreased during the last decade with the exception of a few years. A slight shift in the norm
occurredin200809whenunemployedlabourforceincreased.
Unemploymentrategoesdownwithage,itisobservedthatmostparticipationinthelabourforceisin
age
group
20
50.
This
table
confirms
the
finding
that
unemployment
rate
goes
down
with
age
and
participationincreases(unlesstheageisabove50).
In200506,theunemployedlabourforce inyouth(1525years)was1.2million,whichwas0.4million
lowerthanthestockin200102.Ifthecurrentlevelofunemploymentprevailsforthenext20years,the
stockofyouthunemployedin2030willbearound6million.
Inreadingtable16.22wehavetomakeroomofthefactthatmostofthe labourforceisemployedin
theruralareasthustheunemploymentfiguresaretobeseenasafractionofthewhole.Unemployed
labour force is almost the same in both areas but unemployment rate is higher in urban areas. The
differenceisquitelarge.
Table16.22:UnemployedLabourForcebyArea
Years UnemployedLabour Force(Inmillions) UnemploymentRate(%)
Total Rural Urban Total Rural Urban
199900 3.0 1.9 1.1 7.8 6.9 9.9
200102 3.4 2.1 1.3 8.2 7.5 9.8
200304 3.5 2.0 1.4 7.6 6.7 9.7
200506 3.1 1.8 1.2 6.2 5.3 8.0
200607 2.6 1.6 1.0 5.3 4.7 6.6
200708 2.6 1.7 0.9 5.2 4.7 8.3
200809 2.9 1.7 1.1 5.5 4.7 7.1
Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics,
16.18 PolicyInitiatives
a)EmploymentPromotionPolicies
The policy focus of government is on creation of decent employment, and human resource
development.Theimportanceofthefactcanbegaugedbytheinitiativestakenbythegovernmentsuch
as National internship Program, Presidents Rozgar Program; credit is being provided for self
employmentbyNationalBankofPakistan(NBP),enhancementofresidentialfacilitiesbyconstructionof
one million housing units,doublingof ladyhealthworkers to cover Kachi Abadis, raisingof minimum
wage and pension of workers, restoration of Trade Unions. These steps are helpful in employment
generationandhumanresourcedevelopment.Thespecificpoliciesareasfollows:
b)
Accelerating
Investment
&
Economic
Growth
Economicgrowthhasdirectimplicationsforemployment.Productivityfosterscapitalintensiveactivities
thuscausinglayoffintheshortrunbutinthelongrunduetoproductdiversificationandgreateroutput
itcausesjobincrease.Thusgovernmentspriorityistotakethegrowthratetoanoptimumlevelforjob
creation.There isadistinctionbetween lowquality jobscontributingtotheincrease inthenumberof
workingpoorandqualityjobssoemphasisisalsoonthisaspectofthelabourforce.
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253
c)MinimumWage
Thegovernmenthasrecentlyannouncedaraiseof16%intheminimumwages.Thedegreetowhichthis
increasegeneratesanacceptablelivingstandardforwageearnershastobeassessedandtheextentto
whichithassharedthegrowthinGDPisalsotobegauged;itisatasktobeaccomplishedinfuturewage
legislation. Furthermore, the minimum wage fixation will be subjected to a tripartite deliberation
processatregularintervalstoprotectthelivingstandardsoftheworkersandwiderdispersalofgrowth
benefits.Implementationlapseswillbefocuseduponthroughstreamliningtheinspectionsystem.
d)InvestinginIncreasingWaterResources
Agriculture isthe largestsectorofPakistanseconomyemployingnearly45.1percentofthecountrys
workforcein200809.Morethantwo thirdsofthecountyspopulationlivesinruralareasanddepends
directlyorindirectlyonagriculturefortheirlivelihood.ThemajorconstraintinPakistansagriculturehas
beenthelackofavailabilityofsufficientirrigationwater.
e)CreditFacilityThroughSMEBank
SME Bank was established to provide financial assistance and business support to small and medium
enterprises.Upto31stDecember,2009SMEBankhasfinanced8,299SMEs,disbursedloansamounting
toRs.9,510millionto40,891beneficiariesinthecountry.
f)MicroCreditFacilitiesThroughKhushaliBank
TheKhushaliBankwasestablishedtoprovideloansuptoRs.30,000/ eachtounemployedpeopletoset
uptheirownbusiness.Upto31stDecember,2009,theKhushhaliBank(KBL)disbursedloansamounting
toRs.22,481millionto2,038,004beneficiaries.
g)PresidentsRozgarSchemeByNationalBankOfPakistan(NBP)
NationalBankofPakistanhasdevelopedafullrangeofproductsunderthepresidentsRozgarScheme
withabrandnameofNBPKAROBAR.Underthisscheme,aloanuptosizeofRs.100,000/ isgivenforamaximumperiodoffiveyearswithagraceperiodofthreemonthsforestablishingthebusiness.
h)PakistanSkillingProgramme
NationalVocationalandTechnicalEducationCommission(NAVTEC)hasbeenestablishedwithaviewto
overcoming lack of standardization, skill gaps, non availability of proper curricula. Poor quality of
instructionalstaff,inadequateaccreditation/certification,poorinfrastructureandtoencourageprivate
sector to enhance technical education and vocational training capacity and to bring harmony and
develop linkage between technical education and vocational training. Being a regulatory body, this
Commissionwillberesponsibleforlongtermplanninginthisparticularfield.Itwillalsoberesponsible
for setting standards for formulating the syllabus, accreditation, certification and trade testing, etc.
NAVTEC is giving Rs. 2000/ per month to each trainee during the training course. Presently, 1522technical institutes with anenrollment of 314,188areworking in the countryandproviding technical
skilltothelabourforce.Itisbeingplannedtoproduceonemillionskilledlabourperyear.
i)SkillDevelopmentCouncils
Inordertodevelopskilledlabourforceonmodernlines,LabourandManpowerDivisionhasestablished
fiveSkillDevelopmentCouncils (SDCs)oneeachat Islamabad,Karachi,Lahore,PeshawarandQuetta.
TheSDCsassessthetrainingneedsoftheirgeographicalareas,prioritizethemonthebasisofmarket
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254
demandand facilitate training of workers through trainingproviders in the public and private sector.
TheseCouncilhavemetthediversifiedtrainingneedsoftheindustrialandcommercialsectorsandhave
sofartrained46,674workers.
j)OverseasEmployment
Onefactorthatallowedcountriestoreducepovertyandtoimproveincomedistributiondespiteaweak
growthemploymentlinkageisoverseasemployment,whichhasbeenanimportantfeatureofPakistans
experience. In 2008, for example, the flow of workers abroad was over 400,000. This amounted to
around28per cent of the totaladdition in thesize of the domestic workforce between 200607 and
200708. In 2009, the flow of workers abroad reached 600,000 est. which is a major factor in the
increaseinremittances.
AseparateOverseasPakistaniDivisionhasbeenestablishedtofacilitateoverseasworkers.Community
WelfareAttaches(CWAs)havebeendeputed inalltheEmbassiesofPakistan, located inmajor labour
importingcountries,toprotecttherightsofPakistaniworkers.Boostingofoverseasemploymentmay
behelpfulinreducingpressureonjobmarket.
MinistryofLabour,Manpower&OverseasPakistanisismakingeffortstoboostoverseasemployment.
Inthisregard,MoUs/AgreementswithKuwiat,Malaysia,Korea,QatarandUAEhavebeensignedwhile
MoUs/AgreementswithseveralothercountriesareunderProcess.Exportofmanpowerisundertaken
byOverseasEmploymentPromoters(inPrivateSector)andOverseasEmploymentCorporation(inPublic
Sector).MorethansixbillionUSdollarswouldbeearnedduringthenextbudgetyear.The increasein
overseas migration is the result of revolutionary steps taken by the Government for the export of
manpower.MoUhasbeensignedwithMalaysiaforrecruitmentofPakistaniworkerssoastoopennew
jobopportunitiesforalargenumberofsemiskilledandunskilledworkers
MoU in the fieldofmanpowerhasalsobeensignedbetweenPakistanand Korea.According to MoU,
Pakistanwillsend itsworkerstoSouthKoreaonregularbasis.Firstbatchofworkers leftforKoreaon
22nd April, 2008. MoU in the field of manpower has also been signed between Pakistan and the
GovernmentofUnitedArabEmirates(U.A.E).MoUbetweenPakistanandLibyainthefieldofmanpower
exporthasalsobeensignedrecently.
k)InformationTechnology
Information Technology has enormous potential to create jobs for the educated unemployed in the
country.ThedevelopmentofITandTelecomsectorhascreatedenormousemploymentopportunities,
directly or indirectly, for educated unemployed in a wide range of areas like call centres, telecom
engineering telecom sales, customer services, finance and accounting etc. This is one of the fastest
growingsectorsoftheeconomy.TheallocationofRs.3.30billionhasbeenretainedforthissector.This
would further accelerate the activities in the next couple of years, creating more business and
employmentopportunitiesinthecountry.
l)LabourMarketInformationSystemandAnalysis
AProjectLabourMarketInformationSystemandAnalysishasbeenlaunchedintheHRDWingofthe
LabourandManpowerDivision.Theobjectiveoftheprojectistodevelopandconsolidatethecollection
and usage of Labour Market Data in Pakistan. An analysis of data will be made using internationally
recognized Key Indicators for Labour Market (KILMs). The system will yield regular statistics and
informationaboutemployment,underemploymentandunemploymentatnational,localandregional
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levels.Thecoverageofvulnerablegroupsuchaswomenwillbeensured.Changesinsocioeconomicand
educational characteristics of the employed and unemployed labour force, as well as, the changes in
occupationalandsectoralcompositionoftheemployedwillalsobeanalyzed,enablingthepolicymakers
to suggest policy initiatives for employment generation. Three reports under the project have been
releasedwhichhavebeenappreciatedbyallconcernedatnational,aswellas,internationallevel
m)NationalInternshipProgram
ThefirstphaseofNationalInternshipProgram(NIP)hasbeencompleted.Underthefirstphase,25826
applicantswereoffered internshipatFederal,ProvincialandDistrictGovernmentlevels.Secondphase
of NIP was launched in February, 2008. A total of 71,915 applications were received. So far 21138
applications have been verified by HEC and NADRA and are being placed in Ministries, Divisions,
DepartmentsandProvincialGovernmentsandatDistrictlevel.FinanceDivisionallocatedanamountof
Rs.1650millionforpaymentofstipendtointerneesduringthefinancialyear200809.
16.19 LabourPolicy2010:Salientfeatures
In an effort to apply principles of social Justice in the world of work, the government announced a
LabourPolicyon1stMay2010,withthefollowingrelevantfeatures:
1.Raising of Minimum Wages by 16% from Rs. 6000 of the previous year to Rs. 7000 per month.
Paymentofwagesshouldbemadethroughcheques/banktransfersinallestablishmentsregistered
underanylaw.
2.In order to monitor the implementation of labour laws pertaining to wage payments, working
environment and time, Tripartite Monitoring Committees will be set up at district, province and
federallevel.
3.LabourMarketinformationsystemwillbeestablishedthroughcreationofHumanResourceCentres
atdifferentcities.
4.Contractemployeeswithinpublicsectorwillberegularized.
5.Initiation of a comprehensive social insurance scheme on self registration/voluntary basis for all
workersandselfemployedintheeconomyforoldagebenefits.
6.Establishment of a Board to review the cases of workers dismissed under the Removal from
services(SpecialPower)Ordinance2000.
7.Schools run by Workers Welfare Fund (WWF) are to introduce Matric Technical Scheme for skill
development.