81316350-Capacity Development of TVET Institutions in M&E by Piloting the M&E Framework

Each year, more than 2.3 million young people enter Pakistan"s job market, many without formal skills training or relevant work experience. The country"s public Technical and Vocational Education and Training (TVET) system struggles to meet this growing demand, both in terms of capacity and the relevance of its training programmes to labour market needs. Existing TVET offerings often fall short in preparing graduates for current and future employment opportunities. According to the Hunarmand Pakistan Programme Tracer Study (2022), only 42% of state-trained TVET graduates find employment that aligns with their training, underscoring the urgent need for reform. In response to these structural challenges, the Government of Pakistan, with support from international development partners, has embarked on a comprehensive transformation of its TVET system. The TVET Sector Support Programme (TVET SSP)-co-funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU), and implemented by GIZ in collaboration with the British Council-has been a key enabler of this reform. It works in close coordination with the National Vocational and Technical Training Commission (NAVTTC) and various provincial TEVTAs, Quality Assurance Bodies (QABs), and other public and private stakeholders. The programme aims to reorient the TVET system toward market-driven, inclusive, and high-quality skills development. Its core focus areas include improving the responsiveness of training programmes to labour market demand, enhancing access to training for women and disadvantaged groups, building institutional capacity, and fostering meaningful partnerships with the private sector. A major milestone in the reform process has been the development of the National TVET Policy, spearheaded by the Ministry of Federal Education and Professional Training through extensive consultation with both public and private stakeholders. This policy identifies eight strategic reform areas, with a strong emphasis on labour market alignment, quality assurance, and relevance. Particular attention is given to high-potential growth sectors such as information and communication technology (ICT), renewable energy, construction, textiles, and printing-all of which are undergoing transitions toward more sustainable, environmentally responsible production models. The policy also addresses gender equality as a cross-cutting priority, ensuring that both women and men benefit equally from skills development opportunities. Despite policy progress, Pakistan's TVET sector faces challenges, including outdated curricula lacking digital and green skills, limited industry involvement, and weak data use for decision-making. Tools like the National Skills Information System (NSIS) are underutilized, reducing the effectiveness of planning and evaluation. The TVET Sector Support Programme (TVET SSP), launched in January 2023, addresses these issues by focusing on Competency-Based Training (CBT) aligned with labour market needs, offering greater flexibility and improved employability. Successful CBT implementation requires a shift in how training outcomes are assessed and strategic decisions are made. Briefly, the programme"s current phase seeks to establish a culture of continuous improvement and adaptive management in the TVET sector-one that is informed by robust data, responsive to economic trends, and inclusive of all stakeholders, especially women and marginalized youth. By building capacity for data-driven decision-making, institutionalizing evidence-based practices, and scaling CBT implementation, the TVET SSP aims to equip Pakistan"s youth with future-oriented skills and ensure that skills development contributes meaningfully to the country"s economic growth, social inclusion, and global competitiveness.