Project Name Improving Workforce Readiness in Punjab Project
Project Number 52069-001
Country / Economy Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4278-PAK: Improving Workforce Readiness in Punjab
Concessional ordinary capital resources lending US$ 100.00 million
TA 10035-PAK: Strengthening the Capacity of the Government of Punjab to Deliver Quality and Inclusive Technical and Vocational Education and Training
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 2.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector

Education / Technical and vocational education and training

Gender Gender equity theme
Description The proposed Improving Workforce Readiness in Punjab Project (IWRPP) is estimated to cost $110 million, of which the ADB will finance $100 million from ordinary capital resources (regular loan). The Government of Punjab will contribute in-kind assistance of $10 million. The IWRP Project will strengthen the technical and vocational education and training (TVET) sector's ability to support economic growth and job creation in priority economic sectors, including export-oriented sectors. The IWRP Project will expand use of competency-based training and assessment (CBTA), reform the TVET institutional framework, and develop TVET centers of excellence (COEs) and sector skills councils. It will also expand work-based training, strengthen of industry-TVET linkages, address the lack of female participation in TVET, expand entrepreneurship programs for TVET graduates, and introduce the private management of public TVET institutes.
Project Rationale and Linkage to Country/Regional Strategy

The Government of Pakistan (the Government) has set itself an ambitious target of creating 10 million jobs over five years, with a special focus on skill-building through technical and vocational education and training (TVET) in its first term. Achieving this target will require much better performance from the TVET sector. The scale of improvement required can be seen from the Global Competitiveness Report 2018, which showed that Pakistan ranked 125th overall for skills with individual rankings of 90th for the quality of vocational training, 51st for the skillset of graduates, and 63rd for ease of finding skilled employees.

Since the passage of the 18th Constitutional Amendment in 2010, provincial governments in Pakistan are responsible for delivering, funding and regulating TVET. In Punjab, the Industries, Commerce and Investment Department (ICID) has overall responsibility for the TVET sector, although many departments and agencies are involved in the sector. There are two principal public TVET providers in Punjab. The largest is the Technical Education and Vocational Training Authority (TEVTA), with around 400 institutes, while the Punjab Vocational Training Council (PVTC), which serves the poor and needy, has some 270 institutes. TEVTA and PVTC rely mostly on provincial government funding. TEVTA is financed through ICID, while PVTC is funded through the Zakat and Ushr Department and the Planning and Development Department. Other TVET institutes include public providers operated by other governments departments and agencies, and a large private sector. TEVTA and PVTC also operate TVET teacher training centers. The structure of the TVET sector in Punjab is set out in Appendix 4.

The size of the TVET sector in Punjab dwarfs that in other provinces. In 2017, there were some 1,600 TVET institutes and 238,000 TVET enrolments in Punjab, representing 46.0% of all TVET institutes and 56.8% of all TVET enrolments in Pakistan. By comparison, Sindh had only 17.0% of TVET institutes and 18.1% of TVET enrolments in Pakistan in 2017. The labor market in Punjab is characterized by low levels of skills, low female participation and high levels of informality. Women who access TVET are often relegated to traditional female courses such as dressmaking and beauty salon, with little institutional support to encourage them to enter male-dominated programs such as solar-panel repair and maintenance. Women's labor force participation is only 40% that of men. There is substantial gender-segregation in the labor force, with women are concentrated in a few industries such as agriculture, forestry and fishing, and education. In contrast, the number of women in wholesale and retail trade, vehicle repair, and construction is very low. Over 60% of the Pakistan population is under 25. The large and growing youth workforce has low levels of education and has little exposure to TVET. The unemployment rate for youth is high. Labor market outcomes are particularly bad in southern Punjab. The TVET sector's challenges limit its ability to support competitiveness and inclusive economic growth through the supply of skilled workers.


Access to quality employment for workers in Punjab increased (Punjab Skills Development Sector Plan 2018)

Project Outcome
Description of Outcome

Market relevance and inclusiveness of skills development system improved

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Quality and relevance of TVET improved

Equitable access to TVET increased

TVET sector institutional framework strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

as of 25 April 2023: The EA has received EOIs for the 19 PIU staff positions and are currently being reviewed for shortlisting. Terms of reference for some individual consultants have been received by ADB for review.

As of 27 Jul 2023: International FM consultant advertised, expected to commence work in August 2023

PIU staff recruited: Deputy Director (Technical Content /Curriculum); Deputy Director / Project Manager (Civil Works); Deputy Director (Policy, Strategy & Technical); Deputy Director (Environment); Deputy Director (Equipment / Technical Sourcing); Gender Specialist; Communication Specialist; MIS Specialist; Assistant Director (Social Safeguard); Assistant Director (Contract Management); Assistant Director (M&E Training)

Assistant Director (Civil); Communication Specialist; Admin Officer; Office Assistant / Computer Operator

As of 26 October 2023: PIU staff recruited. International FM is expected to start work in November 2023.

As of Jan 2024: International FM and National Procurement are expected to start work in Q1 2024. Most of consulting services (firms and indv) will be advertised in Q1 2024, expected to start work in Q2 2024


as of 25 April 2023: Request for quotation for the procurement of office equipment for PIU use has been received by ADB for review.

AS of 27 Jul 2023: NOL issued for the procurement of PIU furniture and office equipment

As of 26 Oct 2023: Contracts signed for furniture and equipment for PIU staff use.

As of Jan 2024: all civil works package advertised in Dec 2023, bids are being evaluated

Responsible ADB Officer Tajima, Eisuke
Responsible ADB Department Sectors Group
Responsible ADB Division Human and Social Development Sector Office (SG-HSD)
Executing Agencies
Industries, Commerce, Investment, and Skills Development Department (ICISDD)
Concept Clearance 17 Apr 2019
Fact Finding 11 May 2020 to 15 May 2020
MRM 07 Oct 2022
Approval 12 Dec 2022
Last Review Mission -
Last PDS Update 12 Dec 2022

Loan 4278-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2022 15 Dec 2022 15 Feb 2023 31 Aug 2029 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 110.00 Cumulative Contract Awards
ADB 100.00 05 Apr 2024 0.95 0.00 1%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 05 Apr 2024 5.53 0.00 6%

TA 10035-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2022 31 Dec 2022 31 Dec 2022 30 Nov 2025 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 05 Apr 2024 220,854.00
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