Kardar (1997) and Shah (2004) provide a detailed account of training programmes run by the private and public sector.
4.2.1 Trainings in Public Sector Organizations
An important feature of Pakistan‘s TVET programme is training and apprenticeship programmes
run by the public sector companies such as Pakistan International Airlines (PIA), WAPDA, Pakistan Telecommunication Corporation, Pakistan Railways, Taxila Heavy Industries, Pakistan Steel, Pakistan Television Corporation, Wah Ordinance Factories, etc. The in-service training programmes produce more than 10,000 technicians every year. The Pakistan army also has the capacity to train
its technicians; many receive early retirement to become part of civilian labour force. The Small Scale Industries Corporations and Industrial Boards which are considered semi autonomous bodies also operate schemes which produce about 9,000 trained personnel each year. Kardar (1997) contends that intake in the training programme is not based on quality of trainees; these decisions are rather influenced by irrelevant factors such as political affiliation, kinship to existing workers, nepotism of bureaucracy, etc.
4.2.2 Training Programmes in the Private Corporate Sector
Some large firms and multinational corporations do provide substantial training to their new recruits. They also cooperate with the government on the Apprenticeship programmes setup under Pakistan Apprentice Ship ordinance 1962. Most training is conducted on-the-job within industries and through private institutions. Some important firms in this regard are Nestle, Pakistan Telecommunications, Pak-Saudi fertilizers, etc. Some industry associations have also set up private intuitions, for example, the textile industry. The majority of the schemes are adapted to industry specific requirements. An important feature of these schemes is their relevance to industry demand inline with new technological advancements and production processes. Many NGOs have also set up vocational programmes directed at the poor and at women.
There is a need to stimulate industry wide enterprise based training; however, private sector is reluctant and under-train its staff due to lack of company vision, staff retaining policies, fear of poaching of trained staff by other firms, etc130. An incentive structure has to be in place to encourage enterprise-based training. This includes but may not be limited to general training subsidies, levy-grant system, and company tax concessions.
4.2.3 The Apprenticeship Programme
The Government of Pakistan instituted an apprenticeship programme through Apprenticeship Ordinance, 1962. It was further supplemented with Apprenticeship Rules, in 1966. Under the ordinance all manufacturing firms / enterprises employing fifty or more workers are required to recruit one apprentice for every five skilled workers131. Though it sounds like a good initiative; however, discussion in Kardar 1997 suggest that it has increased the cost of doing business. The apprentices attend training course in apprenticeship training institutes or in a private firm. The placements are made by the Regional Directorates. The trainees are offered a stipend which is 60 percent of the ongoing wage for that skill, and rises by 10 percent per annum over the period of training. A failure in compliance with the Ordinance can cost the owner of a firm a minimum fine of Rs. 10,000 or the maximum penalty in the form of six month imprisonment. An additional penalty of Rs. 1,000 per day is also levied if the company fails to pay the fine. Kardar (1997) reported on the inadequacy of the training system as follows:
The formal apprenticeship system produces approximately 1,500 trainees every year while the estimated requirement is more than 20,000. One estimate suggests that training under the apprenticeship programme is imparted by less than half the eligible establishments in Punjab and Sindh and by just a handful of units in NWFP and Baluchistan.
Employers are reluctant to participate in a training package over which they have little control and which is thrust upon them under legislation which they consider
130
ADB 2004 page 47. 131
coercive in nature, particularly in view of legislation which they consider coercive in nature, particularly in view of the rather rudimentary training facilities available throughout the country. They are quite unhappy with the quality of the six month training course organised by the Regional Directorates.
It is also reported that implementing agencies use their powers to seek undue rents from enterprises; therefore, many employers either refuse to participate and find other ways to resist the legislation or simply keep the size of their organization small (less than fifty employees). Apprentices are also known to take disadvantage of the clauses of the Ordinance while the government argues that the employers take advantage of the Ordinance and use apprentices as cheap labour. After the completion of the training period the apprentices are not hired as permanent workers. It must be noted that the system of placement does not give any control to enterprises over quality of trainees132.
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V
FINANCING OF THE TVET SYSTEM
The TVET system costing and financing has been an issue in Pakistan firstly because of lack of commitment and secondly lack of capacity. It is evident from table reported in section 5.4 that government allocations were not fully utilized. Technical education entails high costs as compared to general education.