Pakistan Institute of Development Economics

PDR

THE PAKISTAN DEVELOPMENT REVIEW 

Gaps 1n the Employment Strategy of the National Manpower Commission: An Alternative Strategy
Author: Israrul Haq

The National Manpower Commission (1987-89) in order to meet the unemployment situation envisages generation of an additional l.25 Million work opportunities annually. It envisages an employment target within the macroeconomic framework of a growth rate in GNP at around 8 percent annually. The NMC recommendations were cast within the following parameters. General StrategylParameters (a) Labour force is growing at more than 3 percent annually (the NMC puts it at 3.3 percent) alternatively more than one and a quarter million new people would be entering the labour market every year during 1990s. (b) An annual real G.N.P growth rate of about 8 percent on the present sectoral pattern would be just about sufficient to meet the employment target. (c) The direct employment creating policies can serve to top up the contribution of overall economic growth and cannot be a substitute for it. (d) As a medium term objective-an increase in the capital formation in the economy from 18-19 to 23-24 percent would be necessary. (e) The Commission believes that structural adjustment toward market resource allocation is compatible with high employment policy. (1) Agriculture should no longer be a passive absorber of the rural labourmajor responsibility for labour absorption must shift to sectors other than agriculture. (g) The. small-scale sector must be recognised as the leading sector for employment generation-this recognition must be duly reflected in credit policies and marketing facilities. However, the employment promotion potentials of large industrial enterprises must also be fully realised. Towards this end, it has identified following seven industries: (i) Engineering; (ii) electronics; (iii) textile specially ready made garments;

Israrul Haq

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