Education and training for productive employment is vital for economic and social development. Technical and Vocational Education and Training (TVET) is viewed as a tool for enhancing productivity and reducing poverty. But TVET by itself does not automatically result in economic growth, the provision of jobs or eradication of poverty. Rather, TVET requires an economic policy environment that promotes the creation and growth of enterprises and stimulation of the economy. When businesses grow or expand, demands for new or additional technical and vocational skills emerge, new training opportunities arise, and additional jobs are created.


Developing human and social capital forms the first pillar of Pakistan Vision 2025. It aims to channel and streamline the energies of Pakistan’s large youth population and realise their immense economic potential. Pakistan’s youth bulge can drive innovation and entrepreneurship. The Government of Pakistan is committed to addressing this potential through major investment in youth. Under the Prime Minister’s Youth Program the government is providing young people skills training and access to finance so they can start-up businesses. Youth entrepreneurships shall be further promoted. Internships and job counselling will help youth transition to work life. Skills development institutes will be set up and madrasa education will be mainstreamed. Career counselling of students will help them transition into professional life. Vocational and technical training centres will improve youth employability.

DATA ABOUT SECTOR Barely 17% of youth complete secondary education and a very small percentage acquire employable skills. A large percentage of young people drift into the informal sector, in which they participate in a traditional ustad-shagird (master – apprentice) TVET training.
In the formal TVET system there are only 476,850 trainee places available in 3,581 TVET institutes for the approximately 2,400,000 annual new labour market entrants (53% female). While low, this is an increase of 65% since 2011. The subsequent employability rate is low due to the lack of relevance of the training content.
The labour force accounts for 61% (110 million) of the population, while the official unemployment rate stands at 5.9%.
Vocational education and training has been an essential part of EU policy since the very beginnings of the European Community. The EU has a supporting role in education and training policies. Member States are in charge of their own education and training systems, but they cooperate within the EU to achieve common goals.
Since the adoption of the Lisbon Strategy in 2000, EU education and training policies have focused on growth and jobs.
The Communication entitled ‘Increasing the Impact of Development Policy: An Agenda for Change’ argues that the EU should support vocational training for employability, saying ‘the EU should enhance its support for quality education to give young people the knowledge and skills to be active members of an evolving society'.
In the context of the EU's support to Pakistan, TVET falls under the education sector. The EU’s overall objective in supporting TVET is to improve the productive capacity and employability of workers by providing them with skills for which there is a demand. This is expected to lead to an increase in both the demand and supply of skilled workers.
The EU's current contribution to the TVET sector in Pakistan is EUR 91 million. The indicators for the EU's intervention in 2014-2020 are 1) the Number of people with a job placement following a TVET course; and 2) the Degree of private sector involvement in governance and operation of TVET institutions.

Provinces of Intervention
  • TVET III – EUR 45 million. The aim is to improve governance and private sector participation in the TVET sector to enhance and develop access to quality skills that meet the demands of the labour market.
  • Improving reintegration of returnees in Pakistan – EUR 6.5 million. The aim is to sustainably integrate returning migrants in their home regions and strengthen migration governance capacities of the country to facilitate the reintegration process.
Future Interventions
  • None before 2020
Provinces € 51,500,000 Implementers € 51,500,000
The European Union (EU) unites European countries politically and economically for securing lasting peace and prosperity. Respect and partnership are key elements for cooperation programmes between the EU and other countries.

It contributes to poverty reduction, political stability, and social and economic development, promoting a more prosperous Pakistan for everyone's benefit.
Together with the bilateral funds provided by its member countries, the EU is the largest grant donor to Pakistan.
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