Vocational Training in Pakistan

MANAGERIAL POLICY ASSIGNMENT

Group Members
Syed Taha Owais Mohammad Ibad Desmukh Maisam Ali Shams Jehanzeb Hassan Khan Mohib Umrao Minhaj Ahmed Ali Asgher Poonawala

Introduction
Pakistan needs to achieve universal literacy and primary education completion and high levels of secondary and tertiary education while improving educational quality and relevance at all these levels. Vocational training is important and must be responsive to emerging technologies and to the changing needs of the private sector. Successful Asian economies, beginning with Japan and continuing with South Korea, Taiwan, Hong Kong, Singapore and China all focused on educating and training people to be highly productive. This has been the key driver of growth and will be even more important in the knowledge economy of the 21st century. The nature of work and demands for skills is rapidly changing in Pakistan and employment opportunities are shifting across industries and occupations. The profile of the Pakistani work force in 2005 showed 43.1 percent engaged in agriculture, 13.8 percent in manufacturing and mining, and 43.1 in services. Since 2000, there has been a shift of 5.3% employed labor force from agriculture sector to manufacturing / mining. There are currently only 315,000 enrolled students across 1,522 technical and vocational education and training institutes in Pakistan. It is quite evident therefore, that major renewal is necessary to achieve this quantitative target.

Vocational Skills Training as a Category

Vocational education is the skill development of workforce working in the industry of a country. Vocational training refers to the lower level education and training for the preparation of skilled or semi-skilled workers in various trades, but it does not enhance their level with respect to general education. This type of training can play a very important role in the development of Pakistan. One feature of vocational education that makes it stand out among other types of education is its orientation towards application and the emphasis of the curriculum on the acquisition of employable skills. Secondly, it can be delivered at different levels of sophistication. Vocational education institutions can respond to the different training needs of learners from different socioeconomic and academic backgrounds, and prepare them for gainful employment and sustainable livelihoods. The youth, the poor and the vulnerable individuals of the society can therefore, directly benefit from a vocational education program.

SWOT Analysis of Vocational Education Training in Pakistan

The necessary modernization of vocational education in Pakistan needs to be preceded by an analysis of the current situation, with special stress put on both strong and weak points as well as opportunities and threats. This can be done through a SWOT analysis.

Strengths
Primary and Secondary research indicates the following strong features of vocational training in Pakistan: Graduation means getting a qualification and enables starting a job without the need for further education Pupils combine learning and a career, as in the course of learning, they get experience at work, which can be essential for a future employer Growing, although, still insufficient, cooperation between schools and entrepreneurs in recent years has helped with finding job Although this is still, not very common, cooperation with international corporations which have branches in Pakistan means pupils can more and more often get work experience and apprenticeships abroad and thus experience the world and international labor market The socioeconomic and technological transformation which takes place in the modern world as well as the development of a knowledge based economy does not lead to a marginalization of vocational training. On the other hand, it means creating a new role for the vocational school. This not only brings benefit at the individual level but also proves to be of advantage to the corporate, economic, socio and political development. The working conditions of teachers are generally good which makes it quite an attractive profession for highly qualified professionals Improvement of the quality standards at the centers of formation

Weaknesses
However, to take up the role of transforming vocational education in Pakistan, one should also be aware of the challenges: Skill Deficit: Pakistan suffers from a skill deficit throughout the economy. Education, vocational training and skill development have not kept up with the needs of a changing economy. In Pakistan, only 3 percent of the population undertake any vocational and technical training after school as compared to over 70 percent in the European Union

and 40% in Korea.100 Despite establishing the Technical Education and Vocational Training Authority (TEVTA) at the provincial level and the National Vocational Technical Education Commission (NAVTEC) at the federal level, vocational training is still falling short of producing a highly skilled workforce. Lack of Industry Linkage: The education does not generally correspond to the requirements of the labor market. More importantly, the present system would not be able to deliver the qualitative requirements, either. District-level data reveals that there is little congruity between the local industry and the training available in vocational training institutes. Rather than training according to the needs of the local economy, institutes tend to offer simply what they have traditionally taught, or have been directed to teach through centralized decision making. Trainees therefore, emerge from the system inadequately skilled and consequently, with limited opportunities of employment. Lack of Practical focus: Education is more theoretical than practical; this is a consequence of loosening relationships with companies in the period of transformation as well as underinvestment of schools in modern machinery and tools for practical apprenticeship (generally a weak technical and training base) The lack of a modern technical and teaching base in schools means a rapid change to the educational profile is impossible; as a result adaptation to the labor market needs is delayed The core curriculum is prepared without broad consultation with the representatives of economic practice, so greater involvement of entrepreneurs is necessary in creating both core and school curricula Vocational schools are characterized by a low level of foreign language teaching (particularly English), while employers expect graduates to know at least one foreign language, and in many trades associated with modern technologies this is English Huge mismatch in demand and supply means there is a large and growing market for vocational skills training in Pakistan The governments keenness o collaborate with vocational training institutes as well as the growing awareness amongst rural pupils about technical education creates an enabling environment for doing business Rapid globalization has led to reduction in training and operational costs which allow for more pupils to be trained per unit of time. The effectiveness of skills training has also increased due to the technological advancement and the introduction of online teaching coursework It is possible to obtain funds for financing from banks or foundations Manufacturer companies show special interest in lending equipment to vocational schools Traditional negative perception of vocational training amongst rural societies The lack of financial resources for modernization (on the local, regional and central level)

Opportunities

Threats

Lack of a clear concept for the reform of vocational skills training. However, the situation is changing at a fast pace with more attention given by the government towards such matters. Short term of governments means that politicians and ministers focus more on their own motivations and desires rather than a conducive policy for vocational training and hence many of the policy changes that are proposed are not properly implemented Complexity of the configuration due to the implication of many agents (unions, corporate associations, businessmen etc) Difficulties to combine work schedules and practices Some companies use practices as a free labour Lack of financing for non labour practices There are no specific programs, facilities and infrastructures. The initial investment in vocational schools is too high The training course calendar for unemployed people changes every year according to the government Ongoing changes in regulations, setting up new requirements that are sometimes difficult to achieve when a workshop is already running

Porter 5 Forces Analysis

Porters 5 forces Bargaining power of buyers Degree of threat Medium Remarks The number of training institutes is low and mainly located in urban regions. Buyers prefer players that offer placement guarantee or have good brand name. Non availability of adequate skill manpower in rural region to run vocational centers is addressed by offering students trained by the center part time / full time jobs. Further technology is used to conduct classes in a virtual environment. Vocational training in itself is a substitute for formal education. However training is provided on the job to upgrade skills of the existing manpower. This again is tied up with a service provider. TEVTA is tying up with several players to address the huge demand supply gap. With the huge mismatch in demand supply there is room for many more players. Many players already exist in the segment. Quite a few players in the formal education space are also expanding their horizons and are keen on getting their share of the larger pie.

Bargaining power of suppliers

Medium

Threat of substitutes

Medium

Threat of New Entrants

Low to Medium

Intensity of competitive rivalry

Medium

Positioning
The vocational training institutes facilities, equipment, competent staff and social ambience would give a potential trainee the necessary conditions for success in career development. The center would be committed to vocational training, which will equip Pakistan with an adequately skilled labor force that will in turn strengthen socio-economic development and selfemployment. As a result of the establishment of the center, a steady growth in the number of course recipients as well as in the number of graduates entering the labor market would be expected. As an autonomous training institution within the vocational education and training system, the purpose of the vocational training center would be: To offer employable skills to school leavers. To promote self-employment and certification of skills of the labour force through the provision of skills upgrading programmes. Skills upgrading programmes are aimed at facilitating the certification of skills for workers with experience, but uncertified skills. To promote relations between the training center and employers through programmes of placing trainees in industries to gain experience. Through this co-operation, the Centre also gains insight into the expectations of employers, which will enable it to meet their needs. To co-operate with other training centers locally and internationally in order to exchange ideas on improving training standards and developing skills. To foster a healthy relationship between all those who are interested in developing the country through vocational education and training. Support of Small and Medium Enterprises development (SMEs) in Pakistan is important for the center. The center shall co-operate with institutions involved in this field. The opportunities provided by the center are available to Pakistani youth.

Value Proposition
The business training and education value proposition is: To have an educated and trained workforce who can successfully attract, sell, retain, and increase the loyalty of consumers who are diverse in culture, age, and gender. One model, the Value Proposition Builder for creating a value proposition states six stages to the analysis: 1. Market: for which market is the value proposition being created? 2. Value experience or customer experience: what does the market value most? The effectiveness of the value proposition depends on gathering real customer, prospect or employee feedback. 3. Offering: which products or services are being offered? 4. Benefits: what are the benefits the market will derive from the product or service? 5. Alternatives and differentiation: what alternative options does the market have to the product or service? 6. Proof: what evidence is there to substantiate your value proposition? Looking at this analysis the target market for vocational training is for lower income levels who wish to be trained in technical skills. Vocational institutes need to provide state of art equipment as well as learning facilities for these students. The organization should subsidize the fees and

other expenditure of students. Every organization needs technicians and workers at lower levels to handle machinery and equipment and therefore these vocational institutes aim to train the labor and make them skilled for such jobs. Many vocational institutes in Pakistan provide technical training and education. Therefore, it is very important for any vocational institute to differentiate itself from the market in terms of its strategy. Finally, if a vocational institute claims it is the best then it must demonstrate it as well by producing the labor that is most skilled and that the institutes demand must keep growing. The value proposition statement would be We aim to transform the untrained youth into productive members of society by providing them with the best training and education.

Recommendations
As observed in through the research stated above, Pakistan has a large and growing market for vocational training. Further recommendations are given below: There may be a mutual recognition of qualifications, with TVET or general education courses. A process of Recognition of Prior Learning (RPL) should be implemented to allow competencies gained through work and other experience to be assessed and recognized. Connect Vocational & Technical institutions with institutes of higher learning. There is a need to strengthen the public-private partnerships to establish leading technical training, education and research institution as centers of Excellence in the region. There is a need to connect academic knowledge with practical skills and develop linkages with international knowledge / skill centers. Alumni may be involved in review and revision of the curriculum. The National Vocational and Technical Education Commission (NAVTEC) is mandated to facilitate, regulate, and provide policy direction for technical education and vocational training to meet national and international demand for skilled manpower. NAVTEC may also focus to develop national occupational skills standards, curricula and trade testing certification systems for all sectors in which technical education and vocational training is imparted.