LMIS_Report_Final (22-12-2014)

Authors
Mr. Raja Abdul Hameed
Mr. Salahuddin Qureshi
Supervised by
Mr. Muhammad Javaid
Mr. Jens Siebert
Photo credits
Mr. Abdul Majeed Goraya
Layout and design
Dot Advertising Islamabad
Printed by
December 2014
This report is produced by the National Skills Information System (NSIS) cell, National
Vocational & Technical Training Commission (NAVTTC) with the technical assistance of the
TVET Reform Support Programme, which is funded by the European Union, the Embassy of the
Kingdom of the Netherlands, the Federal Republic of Germany, the Royal Norwegian Embassy,
and has been commissioned by the German Federal Ministry for Economic Cooperation and
Development (BMZ). The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
GmbH is implementing this Programme in close collaboration of the NAVTTC. The analysis,
results and recommendations in this report represent the opinion of the authors and are not
necessarily representative of the position of the GIZ.
National Vocational & Technical Training Commission (NAVTTC)
5th Floor, Evacuee Trust Complex
Sector F-5/1, Islamabad
Tel: +92 51 904404
Fax: +92 51 904404
Email: info@navttc.org

Skills Trend in Textile Industry Pakistan
A Case Study of Faisalabad District
Abbreviations vi
Concept and Definitions vii
Acknowledgments viii
Executive Summary x
Key findings xiii
1. Introduction
1.1 Background 1
1.2 Skills Development 1
1.3 National Skill Strategy 2
1.4 Technical and Vocational Training Reform Support Programme Pakistan 2
1.5 Labour Market Information (LMI) 3
1.6 Scope of the Programme 4
2. Labour Market Intelligence Survey
2.1 Objectives of Survey 6
2.2 Beneficiaries of Survey 7
2.2.1 Private Sector 7
2.2.2 Public Sector 7
2.3 Methodology 7
2.3.1 Questionnaire of Survey 8
2.3.2 Universe 8
2.3.3 Target Population 8
2.3.4 Sampling Frame 8
2.3.5 Stratified Sampling Methodology 8
2.3.6 Sample size and its Allocation: 9
2.3.7 Procedure to Select Sample Unit 10
2.3.8 Training of Enumerators 11
2.3.9 Data Collection and Management 11
2.3.10 Limitation of Survey 11
2.3.11 Response of Survey 11
3. Textile Industry of Pakistan
3.1 Global Overview 13
3.2 Domestic Overview 13
3.3 Performance of Textile Industry 13
3.4 Skilled Manpower in Textile Sector 14
3.5 Textile Industry in Faisalabad 14
4. Establishment Profile
4.1 Year of Establishment 18
4.1.1 Year of Establishment by Sub sector 18
4.2 Registration of Establishments 20
4.2.1 Registration with Trade Associations 21
4.3 Corporate Status of Establishments 21
4.3.1 Corporate Status of Establishments by Sub sector 22
4.3.2. Corporate Status within each Sub Sector 22
4.4 Capacity Utilization 23
4.4.1 Work Status of Establishments (Seasonal and All Time) 23
4.4.2 Capacity Utilization (Number of Shifts Running) 24
4.4.3 Capacity Utilization by Sub sector 24
Contents
II

5. Demand and Supply Analysis of Skilled Workers
5.1 Number of Total Employees 27
5.1.1 Total Number of Employees by Sub sector 27
5.2 Percentage Increase in Employees by Skills 27
5.2.1 Present Composition of Employees by Skill 28
5.3 Composition of Employees by Skills 29
5.4 Employees by Status 30
5.4.1 Composition of Employees by Status 31
5.5 Employment Structure by Sub sector
5.5.1 Average Number Employees by Sub sector 32
5.6 Distribution of Workers by Status of Work as on June 2013 33
5.7 Status of Employees by Sub sector (as of June 2013) 33
5.8 Employees by Skill and by Sub sector 34
5.9 Skilled/Semi-skilled Employees by Gender 35
5.10 Skilled Employee’s Status by Qualification 37
5.11 Employees by Source of Skill and Gender 38
5.12 Skilled Workers from Informal Sources 39
5.13 Recruitment Methodology 40
5.14 Prioritization of Method of Recruitment 40
5.15 Preference in Recruitment of Skilled and Semi-skilled Workers 41
5.16 Future Expansion Plan of Units 41
5.17 Expansion Plan by Sub sectors 42
5.18 Future Manpower Requirement by skill 42
5.18.1 Units with New Expansion Plan 42
5.18.2 Routine Expansion in Employment 44
5.18.3 Overall Future Manpower Requirement 45
6. Performance of TVET Institutes- Trained Workers
6.1 Textile Units Satisfied with the Standard of TVET 47
6.2 Sub sectors Satisfied with Standard of TVET (Public & Private) 47
6.3 Level of Skill Satisfaction 48
6.4 Improvement Proposed by Units for Enhancing Skills 49
7. Shortage of Skilled Workers
7.1 Present and Future Shortage of Skilled Workers 52
7.2 Management of Shortage of Skilled Workers 53
7.3 Sources of Meeting Shortage of Skilled Workers by Sub sector 53
7.4 Management of Human Resource 54
7.4.1 Management of Human Resource by Sub sector 54
7.4.2 Units Maintaining Record of Skilled Employees 55
7.5 Establishment Having its Own TVT Arrangement 55
7.6 Type of TVT Arrangement 56
8. Skilled Employment Trend
8.1 Employment Trend as on June, 2009 and June 2013 58
8.2 Growth in Employment by Sub sector 58
8.3 Growth in Employees by Sub sector and Category 59
8.4 Annual Growth in Employment by Status of Work and Sub sector 61
8.5 Employees status by Level of Education 62
8.6 Increases in Workers by Qualifications 62
8.7 Annual Average Increase in Workers by Qualifications 63
8.8 Employees by Status of Education Level and Sub sector 63
9. Conclusions 66
III

A Case Study of Faisalabad District IV
Figure 1 - Distribution of Faisalabad Textile Units by Number of Employees 10
Figure 2- Distribution of Units by Sub sector 15
Figure 3- Growth of Textile Industry from 1996-2013 18
Figure 4- Annual Average Growth of Textile Industry by Sub sector 19
Figure 5- Units Registered and De-listed with Labour Department 20
Figure 6- Registrations with Trade Associations 21
Figure 7 – Percentage of Establishments by Corporate Status 21
Figure 8 - Percentage Shifts Running in Establishments 24
Figure 9 - Number of Shifts Running by Sub sector 25
Figure 10- Composition of Employees by Skills in Percentage 28
Figure 11 - Composition of Employees by Skills 29
Figure 12 - Composition of Employees by Status in 1995 and 2013 30
Figure 13 - Employment by Sub sector as on June 2013 (%) 32
Figure 14 - Average number of Employees per Unit of Sub sector as on June 2013 32
Figure 15 - Percentage Distribution of Employees by Category of Job
as on June 2013 33
Figure 16 - Percentage of Employees by skill and Sub sector as on June, 2013 34
Figure 17 - Percentage Distribution of Skilled and Semi-skilled Workers by Gender 35
Figure 18 - Percentage Distribution of Skilled and Semi-skilled
Female Employees by Sub sector 36
Figure 19 - Percentage Distribution of Skilled and Semi-skilled
Female Employees by Sub sector 36
Figure 20 - Percentage Share of Qualified Employees by Sub sector 37
Figure 21 - Method of Recruitment 40
Figure 22 - Units with Expansion Plan 42
Figure 23 - Expansion Plan by Sub sector (%) 42
Figure 24 - Manpower Requirement by Skill for New Expansion 43
Figure 25 - Future Manpower Requirement with New Expansion (%) 44
Figure 26 - Routine Expansion in Employment without Expansion Plan 44
Figure 27 - Composition of Future Manpower Requirements by Skills 45
Figure 28 - Sample Units Satisfied with Standard of TVET 47
Figure 29 - Percentage distribution of Satisfaction by Public and Private Sector 49
Figure 30 - Shortage of Skills in Textile Industry 52
Figure 31 - Method to meet the Shortage of Skilled Workers (%) 53
Figure 32 - Establishments having Human Resource Departments 54
Figure 33 - Establishment Having no Arrangement of TVT 56
Figure 34 - Annual Growth Rate in Regular, Temporary and Contract
Employees from 2009-2013 59
Figure 35 - Sub sector wise Increase in Employment by Category of Job 60
Figure 36 - Percentage Growth in employment by Sub sector 61
Figure 37 - Percentage Share of Qualified Workers in Total Employees 62
Figure 38 - Annual Percentage Increase in Workers by Qualifications 63
Appendix - 1 69
Appendix - 2 79
Appendix - 3 87
Appendix - 4 89
List of Figures

V
Table 1 - Number of Textile Units and Sample Unit by Sub sector 10
Table 2 - Establishment by Sub sector and Employment Level 15
Table 3 - Increase in Establishments from June 1995 to June 2013 19
Table 4 - Units Registered and Un- registered by Sub sector 20
Table 5 - Corporate Status of Establishments by Sub sector 22
Table 6 - Distribution of Establishment by Sub sector and Corporate Status (%) 22
Table 7 - Percentage Distribution of by Corporate Status by Sub sector 23
Table 8 - Number & Percentage by Work Status 23
Table 9 - Number and Percentage of Shifts in Establishments by Sub sector 24
Table 10 - Percentage Increase in Employees from 1995 to 2013 by Sub sector 27
Table 11 - Percentage Increase in Employees from 1995 to 2013 by status of work 28
Table 12 - Composition of Employees by Skills 29
Table 13 - Change in Employees by status over 1995 30
Table 14 - Composition of Employees by Status as on June, 1995 and 2013 31
Table 15 - Employment by Sub sector as on June, 2013 31
Table 16 - Employees per Unit of Sub sector as on June 2013 32
Table 17 - Percentage of Total Employees by Status of Work as on June, 2013 33
Table 18 - Percentage of Employees by Skill and Sub sector as on June, 2013 34
Table 19 - Share of Female Employees by Sub sector 35
Table 20 - Skilled/Semi-skilled Employees by Gender and Sub sector 36
Table 21 - Number and Percentage of Total and Qualified Employees by Sub sector 37
Table 22 - Source of Education by Gender 38
Table 23 - Qualified Employees by Gender and Sub sector 39
Table 24 - Skilled Workers by Informal Source and by Gender 39
Table 25 - Method of Recruitment 40
Table 26 - Prioritization of Method of Recruitment 41
Table 27 - Number & Percentage of Qualified Workers by Sources 41
Table 28 - Manpower Requirement with Expansion Plan by Sub sector 43
Table 29 - Routine Expansion in Employment by Sub sector 45
Table 30 - Future Requirements of Workers by Skills and Sub sector 45
Table 31 - Percentage Level of Skill Satisfaction by Sub sector 47
Table 32 - Satisfaction Status with Standard of TVET by Sub sector 48
Table 33 - Level of Skill Satisfaction of TVET Institutions 49
Table 34 - Summary of Reported Measures for Improvement of TVET 50
Table 35 - Shortage of Trade/Skill by Sub sector 52
Table 36 - Management of the Shortage of Skilled Workers 53
Table 37 - Establishment Having Human Resource Department 54
Table 38 - Units Maintaining Record of Skilled Employees 55
Table 39 - Growth in Employment from 2009 to 2013 by Sub sector 58
Table 40 - Growth in Employment by Categories 59
Table 41 - Sub sector wise Employees’ Details by Category of Job 60
Table 42 - Percent growth in Employment of Workers by Sub sector 61
Table 43 - Increase in workers by qualifications and percentage change 62
Table 44 - Employees by Education Level and Sub sector 64
List of Tables

A Case Study of Faisalabad District VI
Admin
& gen.
worker
Administrative and General Worker
BOS Bureau of Statistics, Punjab
CC Career Counseling
CMI Census of Manufacturing of Industries of Pakistan
DA Daily Allowance
DAE Diploma in Associate Engineering
EFP Employers Federation of Pakistan
GFA GFA Consulting Group GmbH
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
GSP Plus Generalized Scheme of Preferences Plus
HRD Human Resource Development
ILO International Labour Organisation
ISCO International Standard Classification of Occupations
JP Job Placement
LMI Labour Market Intelligence
N.E.C Not Elsewhere Classified
NAVTTC National Vocational and Technical Training Commission
NGOs Non-Governmental Organizations
NOSS National Occupational Skills Standards
NSS National Skills Strategy
PASCO Pakistan Standard Classification of Occupations
PBS Pakistan Bureau of Statistics
PVTC Punjab Vocational Training Council
SDPTI Skill Development Programme for Textile Industry
SMOT Stitching Machines Operator Training
TEVTA Technical Education and Vocational Training Authority
TU Technical Up-graduation
TVT Technical Vocational Training
TVET Technical, Vocational Education and Training
TWG Technical Working Group
VC Vocational Counseling
VG Vocational Guidance
Abbreviations

VII
Concept and Definitions
1. Establishment
The Establishment is the institution, involved in operational and economic activity of
running a business i.e. textile factory.
2. Employment Status
Status of economically-active employee with respect to his/her jobs, whether he/she is
regular employee, temporary or working on contract basis, as defined below:
2.1 Regular
Those employees who are appointed on permanent basis as a core staff whose
services are regulated through companies act/labour laws.
2.2 Temporary/Daily Wages
The employees appointed on day-to-day basis or as per additional requirement.
2.3 Contract
Employees appointed for a fixed period of time or assignment basis.
3. Skilled Worker
A skilled worker is one who completes higher level of education i.e. PhD, Master Degree ,
Diploma Holders or equivalent level and who is capable of work and supervises efficiently
the work of semi-skilled workers.
4. Semi-Skilled Worker
A semi-skilled worker is one who acquires lower level of education and skill through
technical and vocational training, apprenticeship and through informal methods i.e.
Ustadi-Shagirdi, family trade etc. He does work generally of defined routine nature
wherein major requirement is not so much of the judgment, skill but for proper discharge
of duties assigned to him or relatively narrow job and where important decisions are
made by others. His work is thus limited to the performance of routine operations of
limited scope.
5. Admin. & General Worker
Employees appointed for general administration of the establishment other than
production process.
6. Employee
The Employee means a person who is working in the institution/ for employer at certain
position and receives remuneration in wages, salary, commission, tips, piece rates or pay
in kind.
7. Level of Education
Level of education means the highest grade attained who have attended a school, college,
university, and technical institutions, etc.

A Case Study of Faisalabad District VIII
Acknowledgments
The report on Labour Market Intelligence Survey of Faisalabad textile industry is the result
of collaborative effort between the TVET Reform Support Programme and Bureau of
Statistics Punjab. The authors acknowledge contributions of many national organizations
and institutions that share knowledge and data in support of this report including the
All Pakistan Textile Mills Association, Faisalabad. The authors are particularly grateful to
the approximated 282 respondents of Textile Industry interviewed by dedicated team of
senior field officers deployed across the Faisalabad district for survey on skilled Labour
market intelligence.

Executive Summary

X
To achieve the objectives of National Skill Strategy, a five year Technical, Vocational
and Educational Training (TVET) Reform Support Programme was launched in April
2011, to assist the Government of Pakistan in the implementation of its TVET sector
reform plans. The TVET Reform Support Programme, funded by the European Union,
the Embassy of the Kingdom of the Netherlands, the Federal Republic of Germany and
the Royal Norwegian Embassy, has been commissioned by the German Federal Ministry
for Economic Cooperation and Development (BMZ). The Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH is implementing this programme in close
collaboration with the National Vocational and Technical Training Commission (NAVTTC).
The main objectives of programme are as under:
• Provide relevant skills for industrial and economic development
• Improve access, equity and employability and
• Ensure quality of skill development
Under Component 3, the TVET Reform Support Programme is assisting National
Vocational and Technical Training Commission (NAVTTC) as well as provincial Technical
Education and Vocational Training Authorities (TEVTAs) to establish and improve their
capacity for managing and analyzing Labour market information, in order to develop
policies and national / sector skills plans responsive to the skill needs of the Labour
market, business and future business prospects.
The programme is supporting the NAVTTC and provincial TEVTAs in establishment and
up gradation of Labour Market Information (LMI) system in Pakistan. The information and
data collected under the system will be used for the purpose of TVET policy formulation
and implementation. The LMI will require detailed information on size, structure
and changes in the labour force demand and supply. Information can be descriptive
(qualitative) or statistical (quantitative). LMI shall also provide “critical” information to the
stakeholders on different TVET aspects – market needs, school to work transition, time
spent on getting employment, relevancy of work with skills acquired and unemployment,
etc. Availability of detailed and disaggregated LMI is a pre-requisite for:
• Responsiveness of their graduates to the needs of the economy and Labour
market employment generating policies, Human Resource Development (HRD),
education and TVET policy formulation and programme design,
• Undertaking Vocational Counseling (VC) and Career Guidance (CG), Job
Placement (JP), and
• Providing feedback to the education and TVET and other training institutions on
the adequacy.
A very limited data on skills is available in the country. Labour Force Survey (LFS)
the prime source and all other major sources are silent in this regard. Under these
circumstances two options were considered to be feasible to fill the data gaps: One
was modification in existing data collecting instruments and the other to conduct
independent Labour Market Intelligence Survey. The existing information system is not
capable to provide immediately the information/data about the emerging trades and
occupations. To overcome this situation Labour Market Intelligence Surveys have been
planned to conduct in the emerging sectors such as Textile, Energy, Food Processing and
Services. The textile industry being the backbone of Pakistan economy has been selected
for the first survey. In textile sector, Faisalabad is selected for the survey being the hub
of textile industries in Pakistan.

A Case Study of Faisalabad District XI
The result of these surveys will be used for the following activities:
• Conducting the Labour market intelligence in emerging sectors of the economy
will provide information about the availably/shortage of trained manpower.
• Support to Develop NOSS for the demanded occupations based on the reports
of Labour market intelligence.
• Support to build the capacity within NAVTTC, TEVTAs, PVTC and other
stakeholders to utilize the NOSS and introduce new disciplines in training
institutes and schools.
• Develop a complete occupational list of each in accordance to International
Standard Classification of Occupations (ISCO)
The objectives of the Labour market intelligence survey for textile industry is to enhance
knowledge on Labour market trends, skill profiles, identify skill shortages, skill training
needs, skills exceeding demand, and preferences/capacities of the employers. It would
help to assess the needs of the market for demanded skills and would also prove helpful
in selecting and designing skill specific curricula.
The key findings of this survey report will facilitate the planners, training institutions and
other stakeholders of textile industry by providing evidence based results for design and
implementation of effective training programme in future.

XIII XIII

A Case Study of Faisalabad DistrictXIV
Key Findings

XIII
• During the period 1995 to 2013, the manufacturing units increased by 139%. The
increase over five years interval i.e.; 1996-2000 was 13.1% , 2001-2005 15.6% , 2006-
2010 18% and during 2011-13 the increase was 11.3% over 1995.
• The growth in establishments by sub sectors during 18 years period indicates highest
growth in the sub sector of Weaving which was 15.5% and the lowest in Spinning sub
sector of 1.9%. The annual average growth in the sub sector of Made up Articles and
Weaving Apparel was 8% and 8.6% respectively. The overall annual average growth
comes to 7.7%.
• During eighteen years period the employment increased from 16,904 in 1995 to
36,053 workers in June 2013. The percentage increase worked out as 113% over the
period of 18 years (1996-2013).
• The highest increase was observed in admin and gen. workers which was 132%. The
increase in semi-skilled workers was 113%, while the lowest increase of 86% was
observed in skilled workers.
• There was no visible change in composition of employees over this time period. One
basis point increase was observed in admin & gen. workers which increased from
11.2% to 12.2% over this time period. The share of skilled workers decreased from 7.5%
to 6.5%, while, there was no change at all in semi-skilled workers.
• The highest percentage increase since start of production (up to 1995) and as on
June, 2013 was in the category of regular employees which was about 173.7% followed
by temporary/daily wages employees which increased by 58.3%. On the other hand
results of survey reveals decline in contract employees by 12.0%
• The proportion of regular employees at start of production of the units was 55.6%,
which increased to 71.4% by June 2013. The share of temporary/daily wages employees
decreased from 31.3% to 23.2%. A drastic change was observed in case of contract
employees’ share which decreased from 13.1% in 2009 to 5.4% only in 2013. It reflects
that the textile industry was undergoing structural changes in employment.
• According to survey 71% of skilled and semi-skilled employees were employed on
regular basis, 23% on temporary/daily wages and 6% on contract basis.
• In textile industry of Faisalabad, 81.3% employees were semi-skilled, 12.2% comprised
admin & gen. workers and only 6.5% were skilled workers. The share of skilled workers
in Pakistan favourably compares with India where it is only 5%.
• The manufacturing sector of Pakistan is generally a male dominating. Likewise the
survey results also indicate that 95% employees were male and only 5% were female.
• The result of analysis indicated that skilled workers qualified from private and public
training institutes constituted 4% of total workers.
• Of the total skilled & semi-skilled workers, having no formal training, 80.7% were
trained through Ustadi-Shagirdi, 16.1% workers had got on the job training in
establishments. Training through family trade was obtained by 2.2% workers and only
1.0% of the skilled workers had got training through apprenticeship in compliance
law.
• On the average 4.5 workers qualified from public and private institutions were
employed in each unit.

A Case Study of Faisalabad District XIV
• 54% of the skilled workers were qualified from formal TVET institutes and the
remaining 46% were trained through informal system. This reflects there is a demand
for TVET trained workers.
• According to result of survey out of 1,262 qualified employees, only 7.8% were trained
from private sector institutes and the rest 92.8% got training from public sector
institutions.
• Out of sample units 38.3% were found satisfied with the standards of formal TVET,
whereas 11% showed their dissatisfaction. The remaining 50.7% did not respond to
the question. This reflects the educational/training institutes of formal TVET, have
not disseminated information properly to the textile sector about their training
programme.
• 74.1% of responding units showed satisfaction with public sector institutions,
while 25.9% indicated satisfaction with the performance of public & private sector
institutions.
• The textile industry was comparatively more satisfied with the performance of public
sector TVET than the private sector.
• The largest percentage of 28% of public & private both suggested improvement in
training on modern equipment, followed by practical training by 24.4% and 18.3% of
the respondents proposed improvement in training on soft skills.
• The largest recommendation for improvement in public sector TVET was for training
on modern equipment 27%, followed by practical training by 25.4%, and soft skill by
20.6%.
• The 17.6% of the respondents suggested improvement in the private sector TVET.
The analysis of data indicated that the largest recommendation for improvement in
private sector TVET was also for training on modern equipment 31.6%, followed by
practical training by 21%, theoretical training, improvement in curriculum and soft skill
by 10.5% of the respondents each.
• 72% of the responding units were of the view that there was no shortage of skill in the
industry; however 28% were of the opinion that there was shortage of skilled workers.
• The 42.8% respondents reported shortage of skilled workers was managed by
getting extra work from the existing employees, 11.8% units reported that they met
the shortage of skilled workers by arranging in service training. While 19.3% reported
that they managed shortage of skilled workers by offering raise in wages, whereas
26.1% reported that they keep the vacancies unfilled till availability of skilled workers.
• On the bases of skills the expected future demand works out to 24.4% of skilled
workers, 8.9% in admin & gen. workers and 5.9% in semi-skilled workers over June
2013. On the average the future demand of total workers comes to 7.4% of the
existing employees of sample units which commensurate with annual growth of
textile industry of 7.7% per annum.
• A total shortage of 52 trade/skills was reported by 69 units of textile industry. The
highest units reported shortage was 29% by Weaving followed by 27.5 % by Finishing
and 14.5% each by Spinning and Weaving Apparel.

XV
• By occupation the highest shortage of 21% was recorded of Weavers followed by
Stitcher 7% and 6% of Loom Operators.
• A total shortage of 92 trade/skills was reported by 136 units required by textile
industry and associated sectors in coming years. The highest units reported shortage
was 48.4% by Weaving followed by 18.4% by Finishing and 8.1% by Spinning. By
occupation/skill the highest percentage of 13% was reported in Weavers and 4% each
of Winder Man and Fitters.
• A total shortage of 52 trade/skills was reported by 69 units of textile industry. The
highest units reported shortage was 29% by Weaving followed by 27.5 % by Finishing
and 14.5% each by Spinning and Weaving Apparel.
• The highest annual growth was reported in the category of temporary/daily wages
workers which was 65.2% followed by regular employees which grew at the rate of
42.4%. In the category of contract employees a negative annual growth of 4.4% was
reported.
• Percentage share of degree holder in total skilled and semi-skilled employees was
only 0.7%, diploma holders share was 2.5% certificate holder’s shares was 0.9%, while
that of without any formal education/training was 95.9%.
• The highest demand of 32.6% was observed in diploma holders. A demand of 5.1% was
recorded in the degree holders. The demand of other non-qualified employees grew
by 10.6%. Surprisingly, the demand for vocational/certificate holders was negative by
3.7% per annum.

A Case Study of Faisalabad District XVIII
Introduction
Chapter 01

1
1.1 Background
The developed and developing countries have acknowledged the far-reaching benefits
of having a skilled, mobile workforce for economic development. Countries that are
successfully competing in the global workplace and achieving social and economic gains
invested heavily in skills development. Pakistan, unfortunately, has fallen behind not only
according to international levels of TVET, but also behind India, Sri Lanka and Bangladesh.
Moreover, it is believed that the current technical education standards, curriculum and
teacher training material do not comply with and respond to the demand aroused by
today’s workforce needs. This particularly applies to the new occupations and professions
added to the technical education and training. Also, the level of involvement of private
sector in providing the technical education and vocational trainings does not go in line
with the national level needs. There are a huge number of private technical and vocational
schools and institutes that have been founded on a preliminary market assessment basis,
who do not follow any minimum academic standards and do not fall under the national
education development programme.
It is a general perception that the existing curriculum offered in the TVET institutes does
not fully match the needs of the Labour market and therefore need to be updated in
order to strengthen the quality of TVET in the country. The existing training programme
was also unable to equip the youth in new skills demanded by employers. Resultantly
under the TEVT Reform Support Programme also importance is being given to revamp
the curriculum.
1.2 Skills Development
In order to achieve sustained economic and social development, remain globally
competitive and be able to respond to changes in technology and work patterns, the
Pakistan government has recently made skills development a political priority. Anticipating
strong demand for skilled workers at projected growth rate of Pakistan’s economy, the
Medium Terms Development Framework (MTDF) 2008-2013 set an annual training target
of 950,000 skilled workers, of which 700,000 were expected to be trained in public
sector training institutes and 250,000 by private-sector training providers, however,
evaluation of the programme has not been carried out so for due to extension in the
completion period. Thus the outcome of the programme is not known.
The Government of Pakistan, realizing the gravity and enormity of these challenges,
established in 2006, the National Vocational and Technical Training Commission,
(NAVTTC) with the mandate to facilitate, regulate, and provide policy direction for
technical education and vocational training to meet national and international demand
for skilled manpower. To provide a framework against which to deliver its mandate,
NAVTTC developed Skilling Pakistan: the National Skills Strategy (NSS), 2009-2013.
The NSS was prepared to achieve the target of Medium Term Development Framework
(2008-2013). The NSS envisaged training one million people annually through public
and private institutions. Implementation of the programme is a joint effort of public and
private sectors and stakeholders at national, provincial/regional and local levels. It is
coordinated by the NAVTTC at federal level and TEVTAs at the provincial levels. The two
organizations have established training institutes at national and provincial levels, and
different modules of training have been formulated and training process started.
In Trade Policy 2005-06 Government announced to establish a “Garment Skill
Development Board”, to provide support to the Textile Garments Sector, and initiated

A Case Study of Faisalabad District 2
a programme of skill development and training of stitching workers known as Stitching
Machine Operator Training (SMOT). The objective was to train a critical mass of 10,000
to 12,000 stitching machine operators in one year both for woven and knitted garments
by imparting training at the factory/unit. An amount of Rs. 96.00 million was allocated
for the purpose.
The revised scheme has been launched and 12 Garments units have joined the SMOT-
II scheme, of which 06 units are in Karachi, 03 units in Lahore, 02 units in Faisalabad
and one unit in Rawalpindi. The other nine units are in pipe line to join the training
programme. About 3,700 trainees (including 80% female) have been trained under
training programme SMOT-I, most of them are employed by the garment units. Another
440 trainees have been trained under SMOT programme Phase-II.
According to Dawn News dated 17th October, 2013, the Textile Skill Development Board
has, so far, imparted training to over 5,800 trainees, including 3,500 women, in textile
garments stitching sector. So far 16 garment units have joined the phase II of SMOT
scheme which started from September 2008.
1.3 National Skill Strategy
The NAVTTC developed a policy document titled Skilling Pakistan: National Skills
Strategy 2009 – 2013.The strategy’s fundamental aim is to reform TVET system. The
NSS envisions provision of relevant skills for industrial and economic development,
improvement of access, equity and employability and assurance of quality through an
integrated approach.
The NSS 2009-2013 has endeavoured to build upon existing strengths and opportunities,
and to reflect both international best practices and indigenous knowledge. It presents
a realistic view of the challenges that Pakistan faces and attempts to offer practical
proposals for reform. This Strategy however, cannot be realized without combined effort
from all stakeholders. Skilling Pakistan Strategy’s success requires an explicit commitment
from its stakeholders:
• From the government to invest in and facilitate skills development and employment
creation
• From employers to interact meaningfully with policy makers, to train their employees
and to ensure decent working conditions
• From training providers to deliver training according to the needs of Industry and
best practice
• From individuals to make use of skills development opportunities to advance personal
and social development and to contribute to national economic growth.
1.4 Technical and Vocational Training Reform Support Programme
Pakistan
To achieve the objectives of National Skill Strategy, a five year TVET Reform Support
Programme was launched in April 2011, to assist the Government of Pakistan in the
implementation of its TVET sector reform plans.
One of the main objectives of the TVET Reform Support Programme is to remove the
existing gaps between market demands and skills training and education. The programme
will contribute to the improvement of the market-friendly regulations including private
sector investment by providing a platform for policy dialogue between public and private

3
sector. Private investors should be able to voice their concerns, propose their perceived
solutions and ideas and participate in the decision-making processes that impact their
business and future business prospects.
The programme is comprised of following components:
Under Component 3, the TVET Reform Support Programme is assisting NAVTTC,
Provincial TEVTAs, PVTC and other TVET related institutes to establish and improve their
capacity for managing and analysing TVET related statistics, in order to develop policies
and national / sector skills plans that are more responsive to the skills needs of the
Labour market.
1.5 Labour Market Information (LMI)
There is a need to provide the Labour market with supply and demand information for
the specific emerging areas of the economy helping education and training providers
(public, private and NGOs) to design and deliver their education /training programme
based on the Labour market demands which eventually contribute to the employability
of the graduated TVET trainees, to be competitive globally, to increase the efficiency
of the domestic industry, to support enhancement of foreign remittances, to provide
employable skills to people in the context of a growing population and to ensure access
to new career opportunities.
Overseas migration of skilled, semi-skilled and unskilled workers has been a constant and
encouraging employment trend. The remittances from the Pakistani Diasporas represent
a significant source of earnings from semi-skilled and unskilled workers. Internationally,
the types of skills demand are changing and higher skilled workers from other countries
are being preferred over Pakistanis. Therefore, it is important to improve the skills profile
of Pakistani migrant workers to enable them to access better jobs in the international job
market and gain higher incomes and be a source of our foreign exchange earnings.
Component1
Component4
Component5
Component2
Component3
TVET Governance
and Management
Capacity Building
for TEVTAs
Cooperative
Training and Green
Skills
Vocational
Qualifications
Framework(NQF)
and Human
Resource
Development(HRD)
Innovative TVET
and Labour Market
Information and
Services.

1.6 Scope of the Programme
TVET Reform Support Programme is supporting in establishment and up gradation
of Labour Market Information (LMI) system in Pakistan. The information and data
collected under the system will be used for the purpose of TVET policy formulation and
implementation. The LMI will require detailed information on size, structure and changes
in the Labour force demand and Labour force supply. Information can be descriptive
(qualitative) or statistical (quantitative). LMI shall also provide “critical” information to the
stakeholders on different TVET aspects – market needs, school to work transition, time
spent on getting employment, relevancy of work with skills acquired and unemployment,
etc. Availability of detailed and disaggregated LMI is a pre-requisite for:
• Responsiveness of their graduates to the needs of the economy and Labour market
employment generating policies, Human Resource Development (HRD), education
and TVET policy formulation and programme design,
• Undertaking Vocational Counseling (VC) and Career Guidance (CG), Job Placement
(JP), and
• Providing feedback to the education and TVET and other training institutions on the
adequacy and.
LMI is not only related to the demand side of the Labour market, but also to the supply
side. In order to get insight into (potential) mismatches in the Labour market this can be
measured in both qualitative and quantitative terms. Therefore, information on current
and potential Labour market discrepancies like available skill vacancies/skill shortages,
competency of existing technical education and vocational training, Labour surplus,
hidden and open unemployment, and various forms of under or over-employment is
critical to design and deliver TVET as per the market needs.
Critical dependency on the information notwithstanding, the existing sources and
institutional mechanism, so far, appeared to be unable to provide the needed data.
There is a shortage of skilled and semi-skilled Labour in the country. The unemployment
remains persistent among youth because most of them do not have the technical skills.
The low level of literacy and educational attainment, as well as lack of modern training
programme and facilities have hampered supply of relevant qualified skilled workforce
for industrial and economic development. The Labour market currently faces an acute
demand for really skilled and semi-skilled people in order to cope with the rapid pace of
development of the country and to improve the Labour productivity. In order to define
skills gaps and market needs within these vocations, reliable LMI system is needed.
Currently, the existing data and documentation is not sufficient to provide the education/
training planners with proper evidence on skill components for particular occupations.
Therefore, collection of evidence-based and good quality data from the Labour market
as well as its correct analysis are prerequisites for restructuring of training programme
and reforming the technical education system.

4

Labour Market
Intelligence Survey
Chapter 02

6
Generally, a need is felt to facilitate and train demand-driven graduates and diploma
holders in the new emerging fields to over-come the shortage of skilled manpower
within the country as well as to compete the oversea market. Various governments plan
huge training programme to meet the shortage. The existing information system is not
capable to provide the information/data about the emerging trades and occupations. To
overcome this situation Labour market intelligence surveys have been planned to conduct
in the emerging sectors such as Textile, Energy, Food Processing and Services. The textile
industry being the backbone of Pakistan’s economy has been selected for the first such
survey. In textile sector, Faisalabad is selected for the survey being the hub of textile
industries in Pakistan. There are about 1127 textile factories in Faisalabad registered with
Labour Department of Punjab. These factories consist of Spinning, Weaving, Dying and
Readymade Garments etc. The products of these textiles factories are sold throughout
country and exported aboard. The result of these surveys will be used for the following
activities:
• Conducting the Labour market intelligence in emerging sectors of the economy will
provide information about the availably/shortage of trained manpower.
• Support to Develop NOSS for the demanded occupations based on the reports of
Labour market intelligence.
• Support to build the capacity within NAVTTC, TEVTAs, PVTC and other stakeholders
to utilize the NOSS and introduce new disciplines in training institutes and schools.
• Develop a complete occupational list of each in accordance to International Standard
Classification of Occupations (ISCO)
2.1 Objectives of Survey
The objectives of the Labour market intelligence survey is to enhance knowledge on
Labour market trends, skill profiles, identify skill shortages, skill training needs, skills
exceeding demand, and preferences/capacities of the employers. It would help to assess
the needs of the market for demanded skills and would also prove helpful in selecting
and designing skill specific curricula. The objectives of survey may be summarized as
follow:
• Collection of data to determine gap between demand and supply of skilled and Semi-
skilled workers.
• Assessment of quality skills in labour market
• Design market based training needs.
• Provide the basic statistical information to develop the National Occupational Skills
Standards (NOSS) for the demanded occupations.
• Facilitating NAVTTC, TEVTAs and other stakeholders to utilize NOSS and introduce
new disciplines in the TEVTAs institutes and schools in the light of survey’s results.
• Employment level and structure in Textile sector.
• Feedback to Pakistan Bureau of Statistics (PBS) in revising Pakistan Standard
Classification of Occupations (PASCO). Collection of data to determine gap between
demand and supply of skilled and semi-skilled workers.

2.2 Beneficiaries of Survey
2.2.1 Private Sector
The businesses, industries, private sector and education providers are the major employer
of the TVET graduates. It spends huge finances and time to attract and maintain skilled
Labour. It will enjoy the ease of recruiting the best demand-driven skilled Labour
from Labour markets. Also, the private sector education providers will be benefited
from a regulated sector that will lead to sound competition among the rival schools
and institutes. It will also increase their involvement in government policymaking and
government strategies in education sector, unemployed youth and neglected populace:
(i.e. the young graduates and basic level Labour and their families).
2.2.2 Public Sector
NAVTTC, TEVTAs and PVTC need reliable data on demand side to prepare TVET reform
policies and effective outcome of NSS. It will provide the institutional arrangement to have
a reliable data on demand side and update information on changing in the occupational
structure due to technological changes in the production techniques. The NAVTTC will
also establish links with private sector through regulatory unit and sharing the priority
areas information with private education and training providers.
Based on the current market demands and needs, the development and introduction
of new trades/vocations will immensely contribute in the employability of the TVET
graduates.
2.3 Methodology
There are two possible approaches to conduct the surveys. One is through the trade
associations of the concerned sectors, Employer Federation of Pakistan (EFP), and
Chamber of Commerce and Industries. Secondly, through specialized organizations
such as Federal/Provincial Bureau of Statistics to conduct survey as they have expertise
and trained staff. The GFA team under Component 3 had an opportunity to discuss the
proposal with the Chamber of Commerce and APTMA Faisalabad. Both supported such
survey and assured to cooperate fully in conducting the survey.
The Component 3 team also reviewed the other possibilities and contacted the Bureau
of Statistics (BoS) Punjab to sort out the ways and means to conduct the first ever series
of Labour Market Intelligence Surveys in Pakistan. The Bureau expressed his willingness
to conduct such survey on cost through field staff engaged in CMI and other surveys.
The Director General informed that the Bureau had trained staff, frequently visiting these
establishments in order to conduct various surveys/information and also have trained
staff and equipment for data processing. After evaluation of various options it was
considered viable to conduct the survey through BOS Punjab as Bureau had expertise
and trained staff for such surveys and had the capacity to complete the task within
shorter time frame in a professional manner.
The major features of the sample design are described in this chapter. The primary
objective of the sample design was to produce statistically reliable estimates for
assessment of labour market need assessment in the textile sector, Faisalabad Punjab
province is considered mother town of Textile sector of Pakistan. Therefore TWG
considered since Faisalabad is one of the major textile producing city, therefore results of
survey might represent the whole national textile sector. Sample design features included
target sample size, sample allocation, sampling frame and listing, choice of domains and
stratified sampling technique.

8
2.3.1 Questionnaire of Survey
The Component 3 team designed a questionnaire and circulated among the local experts
and other concerned institutions for their comments / suggestions. The inputs were
received from Sindh and Punjab TEVTAs, PVTC, PBS and EFP. International Labour
Organization (ILO) in Islamabad was also taken on board. All received inputs were
reviewed and almost maximum suggestions were incorporated in the questionnaire
and placed before Technical Working Group (TWG) a national forum to streamline and
supervise the Skill Information System in the country under NAVTTC. The questionnaire
was approved by the forum. A copy of the questionnaire is placed at appendix I.
2.3.2 Universe
All manufacturing units of textile sector located in the Faisalabad district registered
with the Labour Department Government of the Punjab under the industrial act 1934.
According to BOS Punjab there were about 1127 manufacturing units of Textile Sector in
Faisalabad district registered with Labour Department Punjab.
2.3.3 Target Population
All registered manufacturing units of textile sector in Faisalabad district were classified
into seven subgroups1
i.e. Spinning of Textile Fabrics, Weaving of Textile Fabrics,
Finishing of Textiles, Knitted & Crocheted Fabrics and Made-up Textiles Articles except
Apparel, Other Textiles N.E.C and Weaving Apparel as per Pakistan Standard Industrial
Classification (PSIC). Whereas at the second stage, each subgroup of the sector was
divided into large and small types manufacturing units on the basis of average number
of employees working. Small units describes the workers less than fifty and large units
showing more than fifty employees working in the manufacturing units.
2.3.4 Sampling Frame
Sampling frame is a back bone for the probability sampling in the sample design of any
survey. For the Labour market need assessment survey, a complete list of the registered
manufacturing units of textile sector published by the BOS Punjab in the directory of
registered factories for the year of 2012 was used. This directory is regularly updated
by the BOS Punjab with the help of Labour Department, Government of the Punjab on
annual basis.
2.3.5 Stratified Sampling Methodology
When sub-population vary considerably, it is advantageous to sample each sub
population (stratum) independently. Stratification is the process of grouping members
of the population into relatively homogeneous subgroups before sampling. The strata
should be mutually exclusive: every element in the population must be assigned to only
one stratum. The strata should also be collectively exhaustive: no population element can
be excluded. Then random or systematic sampling is applied within each stratum. This
often improves the representativeness of the sample by reducing sampling error. It can
produce a weighted mean that has less variability than the arithmetic mean of a simple
random sample of the population. For the survey, the sample design of stratified sampling
technique was used for selecting the sample of textile manufacturing unit. The total
textile manufacturing units in region were divided into seven sub-groups as per Pakistan
Standard Industrial Classification (PSIC). Keeping in view controlling the variation among
the subgroups of the textile sector each subgroup was treated as stratum. The subgroup/
stratum is as under:

1
Classified according to Pakistan Standard Industrial Classification (PSIC) Rev.3.1
Subgroup/Stratum PSIC Code
Spinning of Textile Fabrics 1311
Weaving of Textile 1312
Finishing of Textiles 1313
Knitted & Crocheted Fabrics 1391
Made-up Textile Articles except Apparel 1392
Other Textiles N.E.C. 1399
Weaving Apparel 1430
2.3.6 Sample size and its Allocation
Keeping in view of the variability for the characteristics for which estimates are to be
prepared, cost, population distribution and main objectives of the survey, a sample of
287 manufacturing establishments has been considered appropriate to provide reliable
estimates of population parameters within acceptable reliability limits. This sample size
is capable to yield estimates of NSS related variables at 5% of level of significance at 50%
prevalence rate and 5% of precision level. Coefficient of variation (CV) will be expected
about 5%. The entire sample of establishments is drawn from 1127 textile units. The
formula which was used to estimate the sample size is as follow:
n = n0
* N
(n0
+ (N - 1))
n0
= n2
* p (1 - p)
e2
Where:
a = level of significance
p = prevalence rate
e = precision level
N = population size
n = sample size
For allocation of sample size the subgroups/stratum are further subdivided in to two
groups according to the number of employees working in the Textile manufacturing units.
Group1 for those Textile manufacturing units where less than 50 employees were working
in the manufacturing units and group2 represents those Textile manufacturing units
where 50 or more employees were working. The total sample size i.e. (287) is allocated
among strata’s by using probability proportional to size.

Table 1 - Number of Textile Units and Sample Unit by Sub sector
Subgroup/Stratum
Manufacturing
Units having
employees
Sample Allocation
1-49 >49 Total
units
1-49 >49 Total
Sample
Spinning of Textile Fibers 46 66 112 12 17 29
Weaving of Textile Fabrics 466 87 553 119 22 141
Finishing of Textiles 179 72 251 46 18 64
Knitted & Crocheted Fabrics 60 20 80 15 5 20
Made-up Textile, Articles and Except Apparel 8 15 23 2 4 6
Other Textiles N.E.C. 17 5 22 3 2 5
Weaving Apparel 42 44 86 11 11 22
Total 818 309 1,127 208 79 287
Figure 1 - Distribution of Faisalabad Textile Units by Number of Employees
2.3.7 Procedure to Select Sample Unit
Manufacturing Units have been selected by using simple random sampling as list of all
sample units was available in systematic manners.
The list of selected sample units is given at appendix-II
10
27.4%
72.4%
Units Having Employees 1-49
Units Having Employees >1-49

2.3.8 Training of Enumerators
A two days comprehensive training programme was organized at Faisalabad to impart
directly training to the field staff before starting the field operation. The questionnaire
was discussed at length training sessions held with field enumerators. A Manual of
Instructions for enumerators was also prepared containing concepts, definitions and
terminology to be used in survey for guidance. The training programme was supervised
by Director General Director, Data Analyst of BOS Punjab and Deputy Team leader of
Component 3 GFA. The Consultants for report writing of this survey also attended the
training sessions. Mock interviews were also conducted in training session to get more
acquainted with questionnaire. Pilot testing of questionnaire was also carried out by
different enumerators.
2.3.9 Data Collection and Management
Data was collected through face to face interview. Highly qualified Officers of Bureau
of Statistics Punjab were assigned the responsibility as enumerators. On an average 20
manufacturing units were allocated to each officer. The data was collected during the
period with effect from 3rd December.2013 to 10th December, 2013. The data collected
thus was then arranged, tabulated, analyzed and presented in the required form by the
team of BoS Punjab.
2.3.10 Limitation of Survey
The survey of the textile industry was based on the establishments registered with Punjab
Labour Department. However it is pointed out that there are a huge informal textile unit
in Faisalabad which are run on family bases and employs large number of skilled and
semi- skilled workers. These units have not been considered in sample frame which is
limitation of survey.
2.3.11 Response of Survey
Survey Response The coverage of survey was highly encouraging. Out of 287 selected
units 282 establishments has responded and provided the requisite information as per
designed questionnaire. It works out 98+ percent coverage which is high level coverage
even comparing with international standard.

A Case Study of Faisalabad District13
Textile Industry of
Pakistan
Chapter 03

13
Textiles is the most important manufacturing sector of Pakistan and has the longest
production chain, with inherent potential for value addition at each stage of processing,
from cotton to ginning, spinning, fabrics, processing, made ups and garments. The
sector contributes nearly one fourth of industrial value added, provides employment to
about 40% of industrial Labour force, and consumes more than 40% of banking credit
to manufacturing sector and accounts for 8 percent GDP. Barring seasonal and cyclical
fluctuations, textile products have maintained and average share of about 60 percent in
national exports. However, despite being 4th largest producer and 3rd largest consumer
of cotton globally, Pakistan comparative advantage is largely pre-empted by low value
added exports as reflected in country’s 12th rank in world textiles export Pakistan is one
of the largest cotton-producing countries of the world. The availability of cheap Labour
and basic raw cotton as raw material for textile industry has played the pivotal role in
growth of cotton textile industry in Pakistan.
3.1 Global Overview
International Statistics reported that the export of textile and clothing has shown some
signs of recovery after the global financial meltdown in 2009 and export of textile and
clothing trade has increased from US $ 602.2 billion in 2010 to US$ 706.0 billion in 2011
showing an increase of 17 percent. The exports of Pakistani textile and clothing has also
shown positive signs as it increased from US$ 11.8 billion in 2010 to US$ 13.7 billion in 2011
with the increase of about 16 percent. However, in 2010 China became the major exporter
of textiles, pushing the European Union into second place has increased its exports of
textile and clothing by 20 percent in 2011. The European Union and the United States are
the major markets for clothing, accounting for 45 percent and 21 percent respectively, of
world imports.
3.2 Domestic Overview
Domestically Pakistan is facing the problems of shortage of electricity, gas and the
deteriorating law and order situation. The unscheduled/scheduled load shedding along
with increasing rates of gas and electricity have obstructed the viability of the textile
industry as the exporters were unable to meet their commitments. In addition our exports
confined to raw materials to the global textile buyers and the same raw material comes
back to the domestic market in form of finished value-added textile product. The capacity
utilization in textile sector is only 60 percent. There are some positive initiatives like the
announcement of duty waiver on 75 products by the EU from November 15, 2012 which
provided impetus to textile exports. Furthermore it is expected that GSP2
plus status
operational in 2014, which will provide duty free access to EU market. The exporters
would be able to boost the exports to EU particularly in textile. American buyers are also
re-establishing links with Pakistan’s textile and clothing manufacturers.
3.3 Performance of Textile Industry
The textile industry of Pakistan has potential for performing better both in productions
as well as in export by virtue of its inherent competitiveness in the international market
for its conventional products. However, to sustain its position and to move in high value
added products as well as for the increased market share, a large investment in machinery
equipment and new technology is essential. The training of workers, improvement in
Labour productivity, research & development, product diversification and branding are
the immediate areas for companies to focus.
2
Generalized Scheme of Preferences Plus

3.4 Skilled Manpower in Textile Sector
The textile sector employs 45% of overall Labour force with 40% of manufacturing
workers employed under textile sector. The annual requirement for trained manpower
in the textile manufacturing sector is supposed to be 135,0003
per annum. The present
availability of trained manpower in the textile sector is reported to about 10,000 per
annum. Thus there appears a huge gap between demand and supply. Limited availability
of trained technical staff to maintain and run machinery at full efficiency is reported to be
constrained in the development of Pakistan’s textile industry. This shortfall is partly due
to a lack of technical education facilities.
To meet the shortfall in skilled Labour force of the sector, the Government of Pakistan,
has initiated Skill Development Programme for Textile Industry (SDPTI) through textile
policy 2009 - 2014 which envisages the following programme.
• Infrastructural development (through Garment cities)
• Technology up gradation (through TU fund scheme)
• HRD (through skill development of textile value chain)
The Textile policy envisages for comprehensive skill development programme to ensure
a consistent supply of highly skilled and efficient human resources to textile industry,
with the aim to improve supply of skilled Labour on mass scale. The TEVTAs have also
started different training courses at different levels to enhance the availability of trained
manpower to the textile sector. The diploma courses started by TEVTAs are in Textile
Weaving Technology, Printing & Graphic Arts, Textile Spinning, Dress Designing & Making
and certificate courses in Dying and Bleaching, Fitter Textile, Dress Making, Tailoring,
Dress Designing & Making and Fabric Printing etc.
3.5 Textile Industry in Faisalabad
After independence with the capabilities of entrepreneurs and government support, a
city which was basically an Agro-based industrial city with original base of power looms
and textile processing, have grown up to the largest textile manufacturing centre in
Pakistan. Textile is the life blood of Faisalabad’s economy, a big portion of Faisalabad
population is attached directly or indirectly to the textile sector. After observing the
current growth pattern of industrialization, it is safely predicted, that establishing of
industry by the investors/ entrepreneurs, in Faisalabad, is a highly plausible, profitable
and environmentally convenient economic activity.
The textile industries of this region have been selected for the first Labour Market
Intelligent Survey due to its lions share in the sector. In Faisalabad 1127 units are registered
with Punjab Department of Labour by June, 2012. The largest number of units is working
with Weaving sectors and lowest in Other Textiles N.E.C that is 553 and 22 respectively.
According to employment level only 27.4 percent are having more than 49 employees,
whereas, rest of 72.6% establishments are having less than 49 employees.
Registered manufacturing unit of textile sector in 2012 has been used as a universe for
the survey. The size of the manufacturing units by number of employees i.e. 1-49 (Small)
and >49 (Large) for the sub groups of the textile sector is given in table-2.
3
Pakistan Economic Survey 2013-14

15
Table 2 - Establishment by Sub sector and Employment Level
Sub Sector Establishments Employment Level
# % 1-49 >49
Spinning 112 10.0 46 66
Weaving 553 49.0 466 87
Finishing 251 22.3 179 72
Knitted & Crocheted 80 7.1 60 20
Made-up Articles 23 2.0 8 15
Other Textiles N.E.C. 22 2.0 17 5
Weaving Apparel 86 7.6 42 44
Total 1127 100.0 818 309
The above data reveals that largest share in the sector is that of Weaving of Textile
Fabrics which constitutes 49% of the total units. The second largest share is that of
Finishing which represents 22.3% the units. The third notable share is that of Spinning
of Textile Fabrics which is 10%.The share of these three sub-sectors in the total textile
units in Faisalabad District is about 81%, while the remaining 19% share is enjoyed by the
remaining four sub sectors.
Figure 2- Distribution of Units by Sub sector
Spinning
Weaving
Finishing
Knitted & Crocheted
Made-up Articles
Other Textiles N.E.C
Weaving Apparel
49.0%
22.3%
7.1%
2.0%
2.0%
7.6% 10.0%

1717
Results of Survey

Establishment Profile
Chapter 04

4.1 Year of Establishment
A question was included in the questionnaire to have information that regarding year in
which the unit was established. The data reveals that out of 282 sample unit, 118 units
(41.4%) were established up to 1995. Therefore the year 1995 was taken as a bench mark
to analyze the growth in employment and expansion in units etc. During eighteen years
period(1995 to 2013), the manufacturing units increased by 164 (139%). The increase over
five years interval i.e.; during 1996-2000 was 37 units (13.1%) during 2001-2005, 44 units
(15.6%) during 2006-2010, 51 units (18%) and 2011-13 the increase was 32 units (11.3%).
Figure 3- Growth of Textile Industry from 1996-2013
The highest number of units was established during the period 2006-2010 (51 units).
It was time when there was a political stability in the country and foreign loan and aid
was coming to Pakistan due to Government support to NATO in Afghanistan. The less
number of units (37 units) were established during 1995-99 which was a period of political
instability in Pakistan. The growth in textile industry was also reasonable during 2011-13
(32) as the data pertains to three year period only. The overall growth in the textile
manufacturing units in Faisalabad district comes to 164 units over 18 years period or 139%
over 1995.The annual growth rate works out to be 7.7% during the period 1996-2013.
4.1.1 Year of Establishment by Sub sector
The highest increase of 281% was observed in Weaving sub sector and the lowest in
Spinning and Other Textile sub sectors, which was 33.3% and 52.5% respectively. Hundred
percent of the Knitted & Crocheted Fabrics were added during this period. It indicates
that textile industry was moving towards value addition and shifting from Spinning to
other value added sub sectors of textile - Knitted & Crocheted. Summary data is given
in table -3
18
118
155
Upto 1995 1996-2000 2001-2005 2006-2010 2011-2013
199
No. of Units
250
282

Table 3 - Increase in Establishments from June 1995 to June 2013
Sub Sector As on June
1995
As on
June
2013
Increase Percentage Increase
Numbers Numbers Numbers Total Annual
Average
Spinning 21 28 7 33.3 1.9
Weaving 37 141 104 281.1 15.6
Finishing 40 61 21 52.5 2.9
Knitted & Crocheted 0 4 4
Made-up Articles 9 22 13 144.4 8.0
Other Textiles N.E.C. 2 3 1 50.0 2.8
Weaving Apparel 9 23 14 155.6 8.6
Total 118 282 164 139.0 7.7
The growth on annual basis in establishments by sub sectors during 18 years period
given in the above table indicates highest growth was in the sub sector of weaving which
were 15.6% and the lower of 1.9% in Spinning sub sector. The annual average growth in
the sub sector of Made up Articles and Weaving Apparel was 8% and 8.6% respectively.
The overall annual average growth comes to 7.7%. The above table further indicates that
despite lot of problems in Pakistan like shortage of electricity, gas, finances and trained
manpower and in addition quota restrictions against Pakistani exports, the industry was
still growing at rate of 7.7% which was higher than other sectors of the economy.
Figure 4- Annual Average Growth of Textile Industry by Sub sector
1.9
15.6
2.9
Spinning Weaving Finishing Made-up
Articles
Other
Textiles
N.E.C
Wearing
Apparel
Total
8.0
2.8
8.6
Annual Growth (%)
7.7

20
4.2 Registration of Establishments
The universe of survey was taken from 1127 textile units registered with Labour Department
Government of Punjab up to June 2012. The registration with Labour Department Punjab
is a conditional to the strength of Labour in a factory. If number of employees in any
establishment drops less than 10 employees then the establishment gets delisted their
units from the Government to avoid payment of social security and other levies. It
happened during 2013, due to shortage of power and gas; some of units reduced their
manpower and got delisted from Labour Department Punjab. Due to above reasons,
during the survey period, out of 282 units surveyed, 36 units (12.8%) delisted themselves
and 246 units (87.2%) remained registered with different Government Department for
different purposes up to June 2013.
Figure 5- Units Registered and De-listed with Labour Department
Out of total 36 units which were not registered, the highest number of 27 units (75%) was
in Weaving sub sector followed by Finishing of Textile 4 units (11%), Knitted & Crocheted
Fabrics 2 units (5.6%), Spinning, Other Textile N.E.C and Weaving Apparel sub sector one
unit (2.8%) each. However, all the units of Made-up Textile Articles were 100% registered.
Overall most of units were registered as shown in Table – 4
Table 4 - Units Registered and Un- registered by Sub sector
Sub sector Total Units Registered
units
De-listed
units*
Percentage
of De-Listed
Spinning 28 27 1 3.6
Weaving 141 114 27 19.1
Finishing 61 57 4 6.5
Knitted & Crocheted 22 20 2 9.1
Made-up Articles 3 3 0 0
Other Textiles N.E.C. 4 3 1 25.0
Weaving Apparel 23 22 1 4.30
Total 282 246 36 12.8
• De-listed units during 2012-13
87.2%
12.8%
Registered Units
Delisted during 2012-13

4.2.1 Registration with Trade Associations
Out of total 282 surveyed units, 200 units (70.9%) were registered with different Trade
Associations while 82 units (29.1%) were not registered with any Trade Association.
Figure 6- Registrations with Trade Associations
4.3 Corporate Status of Establishments
The corporate (legal) status of establishments was also determined. The legal status of
surveyed units indicated that 77% of the units were privately owned while 22% of the units
were private limited companies and only 1% of unit enjoyed the status of public limited
companies. It reveals that textile sector is dominated by family enterprise and reluctant
to corporatize the business. It is one of the reasons of low productivity, sustainability and
collection of taxes.
Figure 7 – Percentage of Establishments by Corporate Status
Units registered with Trade
Association
Private owned
Not registered with Trade
Association
Private Limited
Public Limited
29.1%
22.3%
1.1%
70.9%
76.6%

22
Table 5 - Corporate Status of Establishments by Sub sector
Sub sector Total Private
Owned
Private
Ltd
Public Ltd
Spinning 28 14 14 0
Weaving 141 126 14 1
Finishing 61 41 18 2
Knitted & Crocheted 22 15 7 0
Made-up Articles 3 2 1 0
Other Textiles N.E.C. 4 3 1 0
Weaving Apparel 23 15 8 0
Total 282 216 63 3
4.3.1 Corporate Status of Establishments by Sub sector
Out of 216 private owned units, highest number of units was in Weaving sub sector (58%)
and the lowest in Made-up Textile Articles (1%). In private limited units the highest number
of units was in Finishing (29 %) and lowest in Made up Textile Articles and Other Textile
N.E.C (2%) each. Out of three public limited companies two companies were in Finishing
(66.7%) and one company in Weaving sub sector (33.3%). It reveals that the corporate
culture has not properly developed in Pakistan and business were being run as family
enterprises which is one of the major factor of low productivity and low tax collection in
the textile industry. To encourage corporate culture for improving sectoral efficiencies, it
is required that government may introduce some monetary and fiscal incentives to the
Textile Industry. The status of establishments by percentages is summarized in table-6.
Table 6 - Distribution of Establishment by Sub sector and Corporate Status (%)
Sub sector Total Private
Owned
Private
Ltd
Public Ltd
Spinning 10.0 6.5 22.2 0
Weaving 50.0 58.3 22.2 33.3
Finishing 21.6 19.0 28.6 66.7
Knitted & Crocheted 7.8 6.9 11.1 0
Made-up Articles 1.1 0.9 1.6 0
Other Textiles N.E.C. 1.4 1.4 1.6 0
Weaving Apparel 8.1 6.9 12.7 0
Total 100 100 100 100
4.3.2. Corporate Status within each Sub sector
Sub sector wise analysis of data indicates that more than 50% of the units in each sub
sector were privately owned units. While highest percentages of private owned units
were in Weaving sub sector (89%). Private Limited status was enjoyed highest by 50% in
Spinning and the lowest 10% by Weaving sub sector. The Public Limited status was the
highest in Finishing of Textiles (3%) followed by Weaving (1%) and none in the remaining
five sub sectors.

Table 7 - Percentage Distribution of by Corporate Status by Sub sector
Sub sector Private
Owned
Private
Ltd
Public Ltd
Spinning 50.0 50.0 0
Weaving 89.4 9.9 0.7
Finishing 67.2 29.5 3.3
Knitted & Crocheted 68.2 31.8 0
Made-up Articles 66.7 33.3 0
Other Textiles N.E.C. 75.0 25.0 0
Weaving Apparel 65.2 34.8 0
Total 76.6 22.3 1.1
4.4 Capacity Utilization
4.4.1 Work Status of Establishments (Seasonal and All Time)
Out of 1127 registered textile units in Faisalabad, 287 units were selected for Labour
Market Intelligence Survey representing each sub-sector of textile industry. However
5 units did not respond therefore, the sample size was reduced to 282 units. Out of
the total 282 sample units 274 units were working on all time bases while 8 units were
working on seasonal basis. Out of 8 seasonal units, 5 units were in Weaving sub sector,
2 in Spinning and one in Knitted & Crocheted Fabrics sub sector. These seasonal units
may be working for meeting additional requirement of Other Apparel manufacturing
units for local and international cloth market demand on order basis. However, the textile
industry of Faisalabad District is predominantly working on all season bases (97.2%), with
seasonal units of only 2.8%.
Table 8 - Number & Percentage by Work Status
Sub sector Total Seasonal All Time
Numbers % Numbers %
Spinning 28 2 7.1 26 92.9
Weaving 141 5 3.5 136 96.5
Finishing 61 0 0 61 100
Knitted & Crocheted 22 1 4.5 21 95.5
Made-up Articles 3 0 0 3 100
Other Textiles N.E.C. 4 0 0 4 100
Weaving Apparel 23 0 0 23 100
Total 282 8 2.8 274 97.2

24
4.4.2 Capacity Utilization (Number of Shifts Running)
The capacity utilization of the textile industry of Faisalabad as a whole is much lower
than the international standard which is one of the major factor of low capital output
ratio and higher cost of production than the regional competitors such as India, China,
and Sri Lanka. The main cause of low capacity utilization is mainly due to shortage of
electricity and gas which are major input for textile industry.
The survey result reveals that out of 282 sample units only 39 were running on three
shifts, 175 on two shifts and 68 units were running on single shift basis.
Figure 8 - Percentage Shifts Running in Establishments
4.4.3 Capacity Utilization by Sub sector
The survey result further indicates that capacity utilization of Spinning units was higher
than the other sub sectors as 50% of Spinning units were working on three shifts, 40%
on two shifts and 10% on single shift basis. The capacity utilization of Weaving, Finishing
and Manufacturing of Other Textile N.E.C were moderate as more than 50% of these units
were working on two shifts basis. The capacity utilization of Manufacturing of Knitted
and Crocheted Fabrics and Weaving Apparel sub sector were the lowest as more than
70% of these units were working on single shift basis. Based on above data the average
capacity utilization for the Textile industry works out to 62%. This is comparable with
60% capacity utilization of textile industry of Pakistan as given in Economic Survey of
Pakistan 2012-13.
Table 9 - Number and Percentage of Shifts in Establishments by Sub sector
Sub sector Shift Running
1 2 3
Number % Number % Number %
Spinning 3 10.7 11 39.3 14 50.0
Weaving 11 7.8 121 85.8 9 6.4
Finishing 17 27.9 37 60.7 7 11.5
Knitted & Crocheted 17 77.3 1 4.5 4 18.2
Made-up Articles 1 33.3 1 33.3 1 33.3
Other Textiles N.E.C. 1 25.0 2 50.0 1 25.0
Weaving Apparel 18 78.3 2 8.7 3 13.0
One Shift
Two Shifts
Three Shifts
22.3%
1.1%
76.6%

Figure 9 - Number of Shifts Running by Sub sector
100
80
60
40
20
0
Articles
Kitted &
Crocheted
Other
Textiles
N.E.C
Wearing
Apparel
1 Shift
Percentage
2 Shifts
3 Shifts

A Case Study of Faisalabad District29
Demand and Supply
Analysis of Skilled
Workers
Chapter 05

27
5.1 Number of Total Employees
In survey a question was asked about total number of skilled and semi-skilled workers at
start of production (up to 1995) of sample units and as on June 2013. It was reported that
the total number of employees of 282 sample units at time of start of production were
16,904 which increased to 36,053 as on June 2013. The increase in employment has been
estimated as 19,140 workers. The percentage increase worked out as 113% over the period
of 18 years (1996-2013).
5.1.1 Total Number of Employees by Sub sector
Sub sector wise number of employees at start of production of units and as on June
2013 is given in table-10. According to this table the highest number of increase was
reported in Spinning sub sector and lowest number of increase in Other Textile N.E.C.
which was 9,710 and minus 5 respectively. In percentage terms the highest increase was
observed in Knitted and Crocheted sub sector which was 458.7 % and the lowest growth
was estimated in Other Textiles N.E.C, where it was negative by 1.1%. Spinning sub sector
increased by 245.1%, Weaving and Made up Articles has registered more than 100%
growth.
Table 10 - Percentage Increase in Employees from 1995 to 2013 by Sub sector
Sub sector Employees % Change
As on
June,
1995
As on
June, 2013
Increase Total Annual
Average
Spinning 3,961 13,671 9,710 245.1 13.6
Weaving 3,460 8,080 4,620 133.5 7.4
Finishing 6,104 8,144 2,040 33.4 1.9
Knitted & Crocheted 395 2,207 1,812 458.7 25.5
Made-up Articles 207 497 290 140.1 7.8
Other Textiles N.E.C. 476 471 -5 -1.1 -0.1
Weaving Apparel 2,301 2,983 682 29.6 1.6
Total 16,904 36,053 19,149 113.3 6.3
5.2 Percentage Increase in Employees by Skills
A comparison of employees by status of skill as on start of production and as on June,
2013 is summarized in table -12 which indicates that total increase during this time period
was 113% whereas the highest increase was observed in admin and gen. workers which
was 132%. The increase in semi-skilled workers was 113%. The increase in skilled workers
was 86% which was the lowest.

Table 11 - Percentage Increase in Employees from 1995 to 2013 by status of work
Works Status Employees % Change
As on
June,
1995
As on
June, 2013
Average
Admin &Gen. Workers 1,894 4,391 2,497 131.8 7.3
Skilled Workers 1,264 2,351 1,087 86.0 4.8
Semi-skilled Workers 13,746 29,311 15,565 113.2 6.3
Total 16,904 36,053 19,149 113.3 6.3
It appears that employers have adopted modern management techniques instead of
depending on traditional techniques of management resulting into highest increase
in admin& gen. workers. Lowest increase in skilled workers can be attributed to the
efficiency of Labour resulting into higher labour productivity. Comparatively higher
increase of semi-skilled workers over skilled workers reflects that the entrepreneurs
preferred on the job training of semi-skilled workers. It also indicated that employers
were not interested in employing skilled workers from market and employed unskilled
and semi-skilled workers and trained them on job.
5.2.1 Present Composition of Employees by Skill
Out of 36,053 employees of sample units of textile industry of Faisalabad, 81.3%
employees were semi-skilled, 12.2% comprised admin & gen. workers and skilled workers
comprised 6.5% of the total employees. The percentage of skilled workers of 6.5% of
total employees favourably compares with India where this ratio is only 5%. That is why
India is pursuing very aggressive training programme to overcome the acute shortage of
skilled workers in textile Industry.
Figure 10- Composition of Employees by Skills in Percentage
Admin & General Workers
Skilled Workers
Semi-Skilled Workers
81.3%
11.2%
7.5%

29
5.3 Composition of Employees by Skills
The composition of total employees at start of production and as on June 2013 is
compared in table-12 below:
Table 12 - Composition of Employees by Skills
Employees in 1995 Employees in 2013
Admin& Gen. Workers 11.2 12.2
Skilled Workers 7.5 6.5
Semi-skilled Workers 81.3 81.3
Total 100 100
According to above the distribution there was no visible change in composition of
employees over this time period. One percent increase has been observed in admin &
gen. workers which has slightly increased from 11.2% to 12.2% over this time period. It
is a matter of concern that one basis point decrease has been observed in the skilled
workers, while, there was no change at all in semi-skilled workers. This position reflects
that there has been almost no change in the composition of Labour by skill in textile
industry of Faisalabad.
It is an alarming situation for the training institutions, skill development organizations
and policy makers. They may analyze and review the situation for improvement other
wise it will be difficult for the industry to be competitive in the world market with out
improvement in the required skills.
Figure 11 - Composition of Employees by Skills
Admin &
General Workers
Employee
(Up to June 1995)
Employee
at June 2013
11.2
12.2
7.5
81.3
81.3
6.5
Skilled Workers
Semi-Skilled
Workers

5.4 Employees by Status
There are three status of employees in the textile industry i.e., Regular, Temporary/Daily
wages and Contract employees. The data collected regarding category of employees is
summarized in the following table.
Table 13 - Change in Employees by status over 1995
Employees % change
As on
June,
1995
As on
June, 2013
Average
Regular Employees 9,402 25,731 16,329 173.7 9.6
Temporary/Daily
wages
5,289 8,375 3,086 58.3 3.2
On Contract 2,213 1,947 -266 -12.0 -0.7
Total 16,904 36,053 19,149 113.3 6.3
According to the above table the highest percentage increase since start of production
(up to the year 1995) and as on June, 2013 was in the category of regular employees
which was about 173.7% followed by temporary/daily wages employees which increased
by 58.0%. The lowest increase was observed in Contract employees which was negative
by 12.0%. It indicates that retention of skilled workers has increased and employers were
depending more on regular employees rather than temporary/daily wages and contract
employees. It also indicates that working conditions of workers has improved in the
textile industry as majority of workers were in the category of regular employees. This
situation leads to the conclusion that in order to retain the skilled workers, employers
were offering them regular jobs. It further reveals that employers do not want to lose the
skilled workers
Figure 12 - Composition of Employees by Status in 1995 and 2013
Total 36053
25731
9402
16904
1947
2213
8375
5289
On Contract
Temporary/
Daily Wages
Regular
Employees
Employee (Up to June 1995) Employee at June 2013

31
5.4.1 Composition of Employees by Status
The proportion of regular employees at start of production of the units was 55.6%
which increased to 71.4% by June 2013. The share of temporary/daily wages employees
decreased from 31.3% to 23.2%. A drastic change was observed in case of contract
employees’ share which decreased from 13.1% in 1995 to 5.4% only in 2013. It reflects that
the textile industry was undergoing structural changes in employment. Summarized data
is given at table – 14.
Table 14 - Composition of Employees by Status as on June, 1995 and 2013
As on June, 1995 As on June, 2013
Regular Employees 55.6 71.4
Temporary/Daily wages 31.3 23.2
On Contract 13.1 5.4
Total 100.0 100.0
5.5 Employment Structure by Sub sector
Total number of workers reported in survey as on June, 2013 were 36,053 employees, in
282 sample units. Out of these workers the highest number of workers was in Spinning
followed by Finishing, Weaving, Weaving Apparel, Knitted & Crocheted, Made up Articles
and the lowest in Other Textile N.E.C sub sector. It may be noted that the Spinning sub
sector constituted only 9.9% of the textile industrial units but it absorbed 37.9% of
the total Labour of the sector meaning thereby Spinning was still a Labour intensive
enterprise. In case of Weaving the situation was altogether different, as it had the largest
share in the industry of 50% while the Labour absorbed by it was only 22.4%. It indicated
that Weaving was comparatively a capital intensive sub sector. The percentage share
of workers in other Sub sector was nearly equal to that of their share in the industry.
Summarized data is given in table-15.
Table 15 - Employment by Sub sector as on June, 2013
Sub sector No. of Units Percentage
Share
No. of
Employees
Percentage
Share
Spinning 28 9.9 13,671 37.9
Weaving 141 50.0 8,080 22.4
Finishing 61 21.6 8,144 22.6
Knitted & Crocheted 22 7.8 2,207 6.1
Made-up Articles 3 1.1 497 1.4
Other Textiles N.E.C. 4 1.4 471 1.3
Weaving Apparel 23 8.2 2,983 8.3
Total 282 100.0 36,053 100.0

Figure 13 - Employment by Sub sector as on June 2013 (%)
5.5.1 Average Number Employees by Sub sector
The total number of sample units was 282 and total number of skilled and semi-skilled
workers employed in these units were 36,053, resulting average number of employees
per unit of 128 workers. The highest average number of workers employed in a unit was
in spinning sector (488 employees) and lowest average number of employees was in
weaving sector (57 workers). The lowest per unit average employment in weaving sector
indicates the use of technically advanced machinery. The average per unit employment
in other sub sectors was more than 100 workers. Summary of data is given in table-16.
Table 16 - Employees per Unit of Sub sector as on June 2013
Sub sector No. Units No. of Employees Employees per Unit
Spinning 28 13,671 488
Weaving 141 8,080 57
Finishing 61 8,144 134
Knitted & Crocheted 22 2,207 100
Made-up Articles 3 497 166
Other Textiles N.E.C. 4 471 118
Weaving Apparel 23 2,983 130
Total 282 36,053 128
Figure 14 - Average number of Employees per Unit of Sub sector as on June 2013
Spinning
Spinning
488
57
134
100
166
118 130 128
9.9
37.9
50
22.4 22.6
6.1
1.4 1.4
8.2
1.3
8.3
21.6
7.8
1.1
Weaving
Weaving
Finishing
Finishing
Made-up
Articles
Made-up
Articles
Kitted &
Crocheted
Kitted &
Crocheted
Other
Textiles
N.E.C
Other
Textiles
N.E.C
Wearing
Apparel
Wearing
Apparel
Total
Percentage Share of Units Percentage Share of Employees
Average number of Employees per unit

33
5.6 Distribution of Workers by Status of Work as on June 2013
The status of employed workers was classified as regular, temporary/ daily wages and
on contract bases in survey. The workers are employed on temporary/daily wage and on
contract, if the order/load of work was more than the estimated/projected load of work.
In some cases the work was normally awarded on contract and temporary/ daily wages.
Such practices were common in manufacturing of Weaving Apparel.
According to survey, 71.4% of skilled and semi-skilled employees were employed on
regular, 23.2% temporary/daily wages and 5.4% on contract basis. It indicates that
manufactures has regular supply order and to meet the supply orders by manufacturing
in house rather than employing contract or daily wages employees.
Figure 15 - Percentage Distribution of Employees by Category of Job as on June 2013
5.7 Status of Employees by Sub sector (as of June 2013)
The data collected on employment by status of employees by sub sector is summarized
in table-17.
Table 17 - Percentage of Total Employees by Status of Work as on June, 2013
Sub sector Regular Temporary/Daily wages On Contract
Spinning 74.6 25.0 0.4
Weaving 66.3 16.2 17.5
Finishing 87.4 12.1 0.5
Knitted & Crocheted 54.3 45.7 0
Made-up Articles 93.8 6.2 0
Other Textiles N.E.C. 90.0 7.4 2.5
Weaving Apparel 32.2 53.5 14.2
Total 71.4 23.2 5.4
Regular Employees
Temporary /Daily Wages
On Contract
23.2%
5.4%
71.4%

The highest percentage of regular employees were in sub sector of manufacturing of
Made-up Textile Articles except Apparel and lowest in sub sector of Weaving Apparel
which were 93.8% and 32,2% respectively. In the category of temporary/daily wages the
highest number of 53.5% was in sub sector of manufacturing of Weaving Apparel and
lowest percentage 6.2% were in sub sector of manufacturing of Made-up Textile Articles
except Apparel. The highest percentage of 17.5% of contract employees was in Weaving
and the lowest 0.4% in Spinning sub sector. In Knitted & Crocheted and Made up Articles
there were no contract employees.
5.8 Employees by Skill and by Sub sector
The highest percentage of skilled manpower was reported in Weaving sub sector of
textile which was 12.5% of the total employees and the lowest percentage of skilled
manpower was reported in manufacturing of Other Textile N.E.C which was 0.6% of the
employees of the sub sector. The highest percentage of admin and gen. workers was in
manufacturing of Made-up Textile Articles except Apparel which constituted 22.3% of
the total employment in that sub sector and the lowest in Other Textile N.E.C. reported
to be 9.3%. On the other hand the highest percentage (90%) of semi-skilled workers was
reported in Other Textile N.E.C. and the lowest percentage (70%) of semi- skilled workers
was reported in Made up Articles.
Table 18 - Percentage of Employees by Skill and Sub sector as on June, 2013
Sub sector Admin & Gen. Workers Skilled Workers Semi-skilled Workers
Spinning 10.2 5.3 84.4
Weaving 12.4 12.5 75.1
Finishing 10.6 5.6 83.8
Knitted & Crocheted 16.0 1.8 82.3
Made-up Articles 22.3 7.7 70.0
Other Textiles N.E.C. 9.3 0.6 90.0
Weaving Apparel 20.9 2.6 76.6
Total 12.2 6.5 81.3
Figure 16 - Percentage of Employees by skill and Sub sector as on June, 2013
Articles
Kitted &
Crocheted
Other
Textiles
N.E.C
Wearing
Apparel
Total
Semi-Skilled Workers Admin & Gen Workers Skilled Workers
84.4
10.2
5.3
83.8
10.6
5.6
82.3
16
1.8
70
22.3 20.9
2.67.7
90
9.3
0.6
76.6 81.3
12.2
6.5
75.1
12.4
12.5

35
5.9 Skilled/Semi-skilled Employees by Gender
The manufacturing sector of Pakistan is generally a male dominating. Likewise the
survey results also indicate that 94.6% employees were male and only 5.4% were female.
Graphical presentation of data is given at figure-18.
Figure 17 - Percentage Distribution of Skilled and Semi-skilled Workers by Gender
Out of total of 31,662 skilled & semi-skilled workers, male employees were 29,956
comprising of 94.6% of the total strength. In Other Textile N.E.C Sub sector about 100%
employees were male and this sector did not employ any female worker. By sub sector,
highest percentage of female skilled & semi-skilled worker was in Weaving Apparel sub
sector (25.4%) followed by Knitted & Crocheted (7.6%) and Spinning (5.7%).
Most of these female workers were working in Spinning and Weaving Apparel sub sector
which were 707 and 600 respectively. The manufacturing of Made-up Textile Articles
except Apparel had employed only three female workers. There were no female workers
reported in Other Textiles N.E.C sub sector. The sub sector-wise detail is given in table-19
Table 19 - Share of Female Employees by Sub sector
Sub sector Female
Number % Share
Spinning 707 41
Weaving 180 11
Finishing 74 4
Knitted & Crocheted 142 8
Made-up Articles 3 0
Other Textiles N.E.C. 0 0
Weaving Apparel 600 35
Total 1,706 100
Male
Female
94.6%
5.4%

The above table further indicates that highest percentage of female skilled and Semi-
skilled employees were in Spinning sub sector (41%) followed by Weaving Apparel (35%),
Weaving (11%) and Knitted & Crocheted (8%).
Figure 18 - Percentage Distribution of Skilled and Semi-skilled Female Employees by Sub
sector
Table 20 - Skilled/Semi-skilled Employees by Gender and Sub sector
Sub sector
Skilled and Semi-skilled Employees by Gender
Male Female Total Sample
Number % Number %
Spinning 11,564 94.3 707 5.7 12,271
Weaving 6,900 97.5 180 2.5 7,080
Finishing 7,208 99.0 74 1.0 7,282
Knitted & Crocheted 1,713 92.3 142 7.6 1,855
Made-up Articles 383 99.2 3 0.8 386
Other Textiles N.E.C. 427 100 0 0 427
Weaving Apparel 1,761 74.6 600 25.4 2,361
Total 29,956 94.6 1,706 5.4 31,662
Figure 19 - Percentage Distribution of Skilled and Semi-skilled Female Employees by Sub
sector
Spinning
707
180
74 142
3 0
600
Weaving Finishing Made-up
Articles
Kitted &
Crocheted
Other
Textiles
N.E.C
Wearing
Apparel
Number
42%
35%
8%
4% 11%
Spinning
Weaving
Finishing
Knitted & Crocheted
Made-up Articles
Other Textiles N.E.C
Weaving Apparel

37
5.10 Skilled Employee’s Status by Qualification
In sample survey a questions was also asked about the number of workers qualified
from public and private training organizations by gender. The result of analysis indicated
that out of 31,662 skilled & semi-skilled workers only 1,262 employees were qualified
from private and public training institutes which were only 4% of total skilled and semi-
skilled workers. The highest percentage of qualified employees were reported in Made-
up Articles except Apparel sub sector and the lowest in Other Textiles N.E.C which
was 9.8% and 0.7%, respectively. On the average 4.5 workers qualified from public and
private institutions were employed in each unit. The sub sector wise details of qualified
employees are given in table-21.
Table 21 - Number and Percentage of Total and Qualified Employees by Sub sector
Sub sector No. of
Employees
Qualified Employees
Public Private Total TVET
Qualified
%
Spinning 12,271 512 2 514 4.2
Weaving 7,080 262 63 321 4.5
Finishing 7,282 281 25 306 4.2
Knitted & Crocheted 1,855 39 0 43 2.3
Made-up Articles 386 32 6 38 9.8
Other Textiles N.E.C. 427 3 0 3 0.7
Weaving Apparel 2,361 35 2 37 1.6
Total 31,662 1,164 98 1,262 4
Figure 20 - Percentage Share of Qualified Employees by Sub sector
4%
4.5%
4.2%
9.8%
0.7%
1.6%
2.3%
4%
Articles
Kitted &
Crocheted
Other
Textiles
N.E.C
Wearing
Apparel
Total

5.11 Employees by Source of Skill and Gender
In Pakistan private sector has also established technical training institutions along with
public sector institutes. To analyze the impact of private and public sectors institutions
on technical training pertaining to textile sector, a question was asked about source of
training from public or private training organization. According to result of survey out of
1,262 qualified employees only 98 employees were trained from private sector institutes
which were only 7.8% and the rest got training from public sector institutions. The details
are given in table-22.
Table 22 - Source of Education by Gender
Training Organizations Male Female Total
Public Sector 1,095 69 1,164
Private Sector 96 2 98
TOTAL 1,191 71 1,262
% Share of private training organization 8.0 2.8 7.8
Out of 31,662 skilled and semi-skilled employees only 1,262 employees were qualified
from private and public training organizations which constituted 4 % of total skilled &
semi-skilled workers. Out of 1,262 qualified employees females comprised 71 (5.6%) and
male were 1,193 (94.5%) The qualified female workers were 0.2% of the total skilled and
Semi-skilled employees and male were 3.8%.
The survey results reveals that qualified male from public and private training organizations
were 1,191 out of total 29,956 skilled and semi-skilled workers which was 4%.The highest
number of qualified male employees were working in Made-up Articles except Apparel
sub sector which was 9.8%. The qualified male employees were also working in Spinning,
Weaving and Finishing sub sectors which were 4.2%, 4.5% and 4.2% respectively, of
employees working in those sub sectors.
In sample units the qualified female were only 71 out of 1,706 female employees which
was 4.2%.The highest number of qualified female workers was working in Spinning,
Weaving and Finishing sub sector with percentage of 6.4%,8.9% and 8.1%, respectively.
The share of qualified female in other sub sectors was almost zero. The summary data is
given in table-23

39
Table 23 - Qualified Employees by Gender and Sub sector
Sub sector Qualified Employees
No.of
Employees
Qualified
Employees
Percentage
No.of
Employees
Qualified
Employees
Percentage
Spinning 11,564 469 4.1 707 45 6.4
Weaving 6,900 305 4.4 180 16 8.9
Finishing 7,208 300 4.2 74 6 8.1
Knitted & Crocheted 1,713 43 2.5 142 0 0
Made-up Articles 383 38 9.9 3 0 0
Other Textiles N.E.C. 427 3 0.7 0 0 0
Weaving Apparel 1,761 33 1.9 600 4 0.7
Total 29,956 1,191 4.0 1,706 71 4.2
5.12 Skilled Workers from Informal Sources
The survey results reveal that out of 30,400 trained workers, 80.7% were trained
through Ustadi-Shagirdi (which refers as informal training of workers having no formal
education, by a skilled workers by imparting practical training only in informal sector)
16.1% workers had got on the job training in establishments. Training through family
trade was obtained by 2.2% workers and only 0.1% of the skilled workers had got training
through apprenticeship in compliance Law. Almost same trend existed for male. But in
case of female 57.4% were trained through on the job training by establishments, 36.9%
through Ustadi – Shagridi, 3.2% through family trade and 0.6% through apprenticeship in
compliance of law. This indicates that most popular system of training was still a traditional
system of Ustadi-Shagirdi and on the job training. It appears public and private training
institutions were not able to meet the demand of the textile sector by providing well
trained skilled workers. Summary data is given in table -24
Table 24 - Skilled Workers by Informal Source and by Gender
Type of Training Male Female Total
No. % No % No %
Ustadi-Shagirdi 23,953 83.2 591 36.9 24,544 80.7
Family Trade 605 2.1 51 3.2 656 2.2
On Job Training by
Establishment
3,975 13.8 920 57.4 4,895 16.1
Apprenticeship in
Compliance Law
258 0.9 9 0.6 267 0.9
Any Other Source 6 0.0 32 2.0 38 0.1
Total 28,797 100.0 1,603 100.0 30,400 100.0
The above data does not include employment details of Crescent Textiles Mills due to
non – response.

LMIS_Report_Final (22-12-2014)

LMIS_Report_Final (22-12-2014)

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