Recruitment Agency Business Practices and Role of Intermediaries in the Foreign Employment Industry in Pakistan Executive Summary A

Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary A

X Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan

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Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan ISBN (print) 9789220325681 ISBN (web PDF) 9789220325698

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Printed in Pakistan Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Contents iii

Contents

Acknowledgements...... vi Executive summary...... vii Acronyms...... xii 1. Introduction, scope and objectives...... 1 1.1 Introduction ...... 2 1.2 Scope and objectives...... 3 1.3 Research questions...... 3 2. Review of the literature...... 4 3. Conceptual framework and methodology...... 8 3.1 Conceptual framework...... 9 3.2 Methodology ...... 10 3.2.1 Selection of OEPs...... 10 3.2.2 Selection of recruitment intermediaries...... 10 3.2.3 Focus group discussions with relevant stakeholders...... 11 3.2.4 Case studies...... 11 3.2.5 In-depth interviews with stakeholders...... 11 3.2.6 Study limitations...... 12

4. Evolution of the recruitment industry for foreign employment in Pakistan...... 13 4.1 Institutional arrangements...... 14 4.2 Rules and regulations...... 15 4.3 Channels of recruitment...... 15 4.4 Key features of the recruitment industry in Pakistan..... 17 4.5 The need for recruitment intermediaries...... 19 5. Role of intermediaries in recruitment for foreign employment in Pakistan...... 21 5.1 Profile of recruitment intermediaries...... 22 5.2 Recruitment business practices by intermediaries...... 26 5.3 Relationship between intermediaries and OEPs/foreign employers...... 30 Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan iv Contents

5.4 Intermediaries, migrant networks and recruitment...... 33 5.5 Relationship between intermediaries and prospective migrants...... 34 5.6 Profile of prospective migrants, as reported by intermediaries...... 37 5.7 Knowledge and use of existing institutional services by intermediaries...... 38 5.8 Placement of workers abroad by intermediaries...... 39 5.9 Amount charged by intermediaries to OEPs, overseas employers and migrant workers...... 41 6. Some divergent views among stakeholders about the role of intermediaries in recruitment...... 43 7. Regional experiences related to regularizing intermediaries...... 45 8. Conclusions and recommendations...... 47 Bibliography...... 50

Tables

3.1 Number of participants surveyed or interviewed, by research method and district...... 11 4.1 Number of active licensed overseas employment promoters (OEPs), by Protector of Emigrants Office, 2019...... 16 Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Figures v

Figures

2.1 Sending country: Hiring process for migrant workers...... 5 4.1 Channels of legal recruitment in Pakistan...... 15 4.2 Placement of Pakistani workers abroad, by channel of recruitment (OEPs vs direct)...... 17 4.3 Major reasons for the need of intermediaries in the recruitment business...... 20 5.1 Distribution of intermediaries surveyed, by age...... 22 5.2 Distribution of intermediaries by level of educational attainment...... 23 5.3 Distribution of intermediaries by overseas work experience...... 24 5.4 Distribution of intermediaries by number of years of experience in the recruitment business...... 24 5.5 Distribution of intermediaries by main current occupation...... 25 5.6 Distribution of intermediaries by number of OEPs they work for...... 26 5.7 Distribution of intermediaries by working history with overseas friends, relatives or foreign employers...... 27 5.8 Types of difficulties faced by intermediaries, and their reasons...... 28 5.9 Distribution of intermediaries by destination countries...... 29 5.10 Reasons for an intermediary to work with a particular OEP...... 30 5.11 Distribution of intermediaries by type of service offered to OEPs ...... 31 5.12 Types of issues faced by intermediaries working with OEPs...... 32 5.13 Modes of contact between intermediaries and prospective migrant workers...... 34 5.14 Types of service offered by intermediaries...... 35 5.15 Types of problem faced by intermediaries with intending migrant workers..... 36 5.16 Types of occupational trades of intending migrant workers...... 37 5.17 Knowledge of regulations and use of relevant institutions...... 38 5.18 Number of migrant workers placed overseas by intermediaries working with OEPs...... 39 5.19 Perceived reasons for declining placement of Pakistani workers in GCC countries...... 40 5.20 Average amounts charged by intermediaries to OEPs and migrant workers...... 41 5.21 Average amounts charged by intermediaries to overseas employers, relatives and friends...... 42 Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan vi Acknowledgements

Acknowledgements

This study was commissioned under the ILO project “Global Action to Improve the Recruitment Framework of Labour Migration” (REFRAME) with the generous financial support of the European Union. The study was authored by Dr G. M. Arif, an independent researcher. The author would like to acknowledge the support provided by the ILO Country Office for Pakistan, in particular Ms Munawar Sultana, National Project Coordinator, REFRAME project; Mr Jesse Mertens, Technical Officer, REFRAME project; the ILO Country Office for Sri Lanka and Maldives; and Ms Eliza Marks, Technical Officer, REFRAME, ILO Headquarters. Further technical inputs were made by Mr Shabarinath Nair, Migration Specialist, ILO Decent Work Team for South Asia; and Ms Rabia Razzaque, Senior Programme Officer, ILO Office for Pakistan. The author acknowledges the assistance provided by the project team: Syed Abdul Majid, field supervisor and coordinator, Mr Muhammad Afzal and Zulfiqar Hussain in gathering primary data from the field. The author would also like to acknowledge the inputs of the Ministry of Overseas Pakistanis and Human Resource Development (MOP&HRD) and the Bureau of Emigration and Overseas Employment (BE&OE). Thanks are due to the contributions of all respondents including recruitment intermediaries, overseas employment promotors (OEPs), families of migrant workers and returned migrants, for taking time to participate in the study. In particular the author highly appreciates the officials of the Overseas Employment Corporation (OEC), the Pakistan Overseas Employment Promotors’ Association (POEPA), the International Organization for Migration (IOM), the International Centre for Migration Policy Development (ICMPD), the Pakistan Workers Federation, and Mera Maan for their valuable contributions that enriched the findings and recommendations. Appreciation is due to Dr Nasra M. Shah, Professor, Lahore School of Economics, for peer reviewing this report and providing invaluable comments, and to May Hofman of Bibliofiles Ltd. for copyediting. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary vii

Executive summary

Introduction Major findings

Pakistan has well-established institutional structures, rules and regulations and formal Evolution of the recruitment processes for sending workers for foreign industry for foreign employment employment through licensed recruitment in Pakistan agencies and overseas employment promoters (OEPs). Despite these formal In the 1970s, when labour migration to Gulf arrangements, however, the role of illegal Corporation Council (GCC) countries took off and irregular intermediaries in recruitment on a large scale, three organizations – the has increased over time. There is a dearth National Manpower Council, the Directorate of information on the profiles of these of Seamen’s Welfare, and the Protectorate intermediaries and on their practices in the of Emigrants – were amalgamated into recruitment industry. This pilot study, carried the Bureau of Emigration and Overseas out in the two high-migration districts of Employment (BE&OE), as the regulatory Gujranwala and Sialkot in Punjab province, body to control, facilitate and monitor the employs a combination of quantitative and overseas labour emigration process. The qualitative methodologies for the profiling of emigration process is managed under the recruitment intermediaries, understanding Emigration Ordinance and Rules 1979. The their business practices and developing Overseas Employment Corporation (OEC) a set of recommendations for effective was established in 1976, as a public sector management. The study is not representative recruiting agency to deal with the demand for any geographical or administrative level. from overseas governments. The Overseas The primary data presented in this report Pakistanis Foundation (OPF) was set up in comes from in-depth interviews with OEPs 1979, with a mandate to manage the social and relevant stakeholders, structured welfare of emigrants and their families interviews with intermediaries, focus group in Pakistan. Community welfare attachés discussions (FGDs) with prospective and (CWAs) placed in Pakistani Missions abroad returned migrants as well as discussions with are also an integral part of the institutions, their families, and case studies of recruitment aimed at strengthening the labour intermediaries and OEPs, carried out in June- emigration system. All these institutions, July, 2019. BE&OE, OPF, OEC and CWAs are supervised by the Ministry of Overseas Pakistanis and Human Resource Development (MOP&HRD), established in 2013 through a merger of two Note on COVID-19 (June 2020). separate ministries (the Ministry of Human Resource Development and the Ministry of This report was conceptualized, researched Overseas Pakistanis). (including quantitative and qualitative data collection) and finalized by the ILO REFRAME The recruitment process in Pakistan is Project prior to the COVID-19 pandemic. The pandemic’s impact on the recruitment handled through seven Protectorate of of migrant workers from Pakistan is being Emigrants Offices: in Lahore, Rawalpindi and monitored by the ILO – including through Multan in Punjab; Karachi in Sindh; Peshawar the Socio-Economic Impact Assessment and Response Plan for COVID-19: Pakistan. The and Malakand in Khyber Pakhtunkhwa; findings and recommendations of this report and Quetta in Baluchistan. These offices remain relevant in the immediate and long-term response to COVID-19. are supervised by the BE&OE. There are two legal channels for the procurement of overseas employment; (i) through an Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan viii Executive summary

overseas employment promoter (OEP) or have led to an increased role for and OEC; or (ii) by “direct” employment, in which importance of unlicensed intermediaries. an individual is allowed to procure foreign A number of factors account for the growing employment through his or her own efforts need for recruitment intermediates, or through a relative or friend working including: the unwillingness of OEPs to visit abroad. The BE&OE issues licenses to private and mobilize prospective migrant workers OEPs and regulates and monitors the direct in rural areas and small towns; lack of employment as well. access to the information on foreign jobs The functioning of the recruitment industry disseminated by the relevant authorities in Pakistan is quite complex. The dichotomy and foreign employers; a trust deficit toward of the legal channels of recruitment – “direct” OEPs, who are unknown to prospective or “through an OEP”– as reported in the migrant workers; and familiarity with and registration data of BE&OE, may not reflect trust in local intermediaries. the actual migration trends, particularly in the case of Saudi Arabia which has a quite complicated recruitment process usually completed through the assistance of OEPs. Profile and recruitment business The “direct visa” is a common feature in practices of intermediaries GCC countries, except for Saudi Arabia. The role of Pakistani migrants working in these The majority of intermediaries are at prime countries is important in securing job offers working age. About one-tenth of them are for other Pakistani workers. illiterate, while 40 per cent have completed between five and eight years of schooling. A considerable proportion of OEPs have More than a quarter have completed ten limited their role to “processing” only, years of education, and the remaining one- suggesting that they do not maintain fifth have attained more than ten years. contacts with foreign agents or employers With this level of qualification they are likely to secure job offers for Pakistani workers, to have contacts with low-skilled or semi- and they are not themselves selecting skilled prospective migrant workers. prospective migrants. Rather, they merely facilitate prospective migrant workers Seventy per cent of the intermediaries in “processing” their visa and other surveyed are returned migrants, with foreign employment documents such as a experience of working abroad. Around medical test certificate or insurance, and half of them are engaged in farming and pre-departure briefing, among others. small enterprise (mainly shopkeeping). This feature of recruitment in Pakistan Interestingly, one-fifth of them are either has resulted in a growing “disconnect1” travel agents or property dealers. More between OEPs and prospective migrant than half of them have been active in the workers, who are usually now approached recruitment industry for the last five years, by intermediaries. while more than one-fifth reported having ten years of experience. The recruitment industry in Pakistan seems focus mainly on the emigration of unskilled The findings of the study suggest that and semi-skilled workers, the majority of the majority of intermediaries are likely whom have no or little education. Access to be associated with one OEP. Two- to the information system on foreign thirds of them have also been working job opportunities and legal channels of with overseas employers or friends and recruitment has been reported as quite relatives, and secure foreign job offers weak, especially for those prospective directly. An overwhelming majority of the migrant workers with a low level of intermediaries (89 per cent) are carrying education and skills, who primarily rely on out their recruitment business as a part-time friends, relatives or local intermediaries to activity, without any office. The geographical obtain this information. These weaknesses coverage and scope of their recruitment

1 The term “disconnect” here means that OEPs are not directly accessible to prospective migrant workers, particularly in rural areas Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary ix

activity is not limited to the village and/or abroad, with 90 per cent of them sending 20 surrounding areas (where intermediaries or fewer Pakistani workers abroad during the reside); rather, the scope of their operations previous year. Almost all confidently affirm extends to tehsil or district level. Most of their capability to send more workers abroad, them are working independently and have if they are regularized. no collaboration with other stakeholders. In Two-thirds of the intermediaries surveyed order to find dependable and trustworthy reported charging more than PKR 10,000 workers, they tend to use their village-level (US$61) to the OEP per migrant.2 Around 15 contacts including local elders and their per cent of intermediaries reported charging regular clients. PKR ≥50,000 (US$303) per migrant to the The key services of intermediaries offered to foreign employer. For the migrant workers, OEPs include identifying suitable workers, 40 per cent of the intermediaries remarked supporting the prospective migrants in that on average they charge PKR ≥20,000 obtaining the required documents, and (USD$121) in return of their services. completing pre-departure processes. GCC countries, particularly Dubai (UAE), Muscat (Oman) and Saudi Arabia are the main destination countries. The intermediaries Perception of stakeholders about mostly target low- and semi-skilled workers the role of intermediaries who are likely to secure jobs as drivers, electricians, plumbers and masons. The OEPs are seen as not very effective in generating foreign job offers for Pakistani workers, and a sizable proportion of OEPs are engaged in “processing the documents” Knowledge and use of existing only. Prospective migrant workers generally institutional services by lack trust in OEPs, who are not accessible to them. Over time, the OEPs have not been able intermediaries to maintain databases and are losing their More than two-thirds of the intermediaries share in the Pakistani recruitment industry. surveyed are not aware of the Emigration A representative of the Pakistan Workers Ordinance and Rules 1979, and of those who Federation believes that no one is taking the know, their main sources of information responsibility for middlemen (intermediaries) are OEPs, media and friends or relatives. A engaged in the recruitment industry, and considerable proportion of intermediaries thus the protection of migrants’ rights have visited the Protectorate of Emigrants through trade unions should be encouraged. Office, Lahore during the last five years to Pakistan is one of the major labour-sending seek information about their assignments, countries in South Asia, and the demand processing and visas, and about 45.3 per cent for overseas jobs is very high, but the flow of them were able to receive the required of information on foreign job opportunities information. and regular channels of recruitment is seen as weak. Intermediaries are not part of the formal legal recruitment system of the country, and informally are associated with Placement of workers abroad more than one OEP, making it quite difficult by intermediaries, and service to trace them when handling complaints. charges Some travel agents and trade testing and training centres (to test the skill level of Although a sizeable proportion of workers) have also been illegally involved in intermediaries have been operating their the process of recruitment. The stakeholders recruitment business as a part-time activity also view “direct visa” as a source of informal which they manage single-handed, they have recruitment activities, which encourages the demonstrated capacity to place workers involvement of intermediaries.

2 As per UN exchange rate 1 US$=PKR164.972 in April 2020. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan x Executive summary

Regional experiences in 1. The outreach of OEPs needs to be markedly enhanced, with the aim of regularizing intermediaries connecting them with prospective migrants. In this regard, three It is difficult to find good practices in steps may be considered. First, managing recruitment intermediaries in the performance of OEPs could be Pakistan or the wider region. However, regularly evaluated. The BE&OE some good efforts have been initiated to presently evaluates their performance reduce malpractices and exploitation by on the basis of two indicators: the total illegal sub-agents. Nepal and Sri Lanka have number of emigrants sent abroad, and tried to register intermediaries and sub- the number of complaints received agents, but the results are not encouraging; against the OEP. The evaluation the number of illegal sub-agents in Sri criteria should also assess how an OEP Lanka is much higher than the number approaches prospective emigrants. of sub-agents registered, which leads to Second, the rules allow an OEP to continued recruitment practices by illegal open two sub-offices. OEPs could be intermediaries. In addition, the empirical encouraged to open their sub-offices in evidence intended to guide the regulatory small towns to increase their presence efforts was found inadequate, which also in wider areas.3 If an OEP can manage impeded the registration of intermediaries. more than two offices, permission for The recent emigration of Pakistani workers such opening may be granted. Third, to the Republic of Korea seems to have been the capacity of OEPs in carrying out a good practice. It was completed by the their recruitment business needs to be Overseas Employment Corporation without monitored regularly. And the capacity engagement of intermediaries. Although this of OEPs to understand the value of was small-scale emigration, the experience and compliance with fair recruitment suggests that a sound memorandum of principles as a business case, needs to understanding (MoU) between two parties be enhanced. or governments with a good implementation 2. The BE&OE has started an awareness strategy can restrict irregular activities in the campaign about overseas employment recruitment business. opportunities and recruitment processes through print, electronic Recommendations and social media. The POEPA and other relevant stakeholders need to work with the BE&OE to enhance There is no easy or single solution for public awareness about (i) overseas improving the governance of recruitment in job opportunities; (ii) legal regular Pakistan, which is increasingly relying on a channels of recruitment; and (iii) variety of informal relationships that evade regulations on fees and other costs. the regulations. Intermediaries do facilitate The FGD participants even suggested meeting the demand for foreign workers, but that an immunization-type campaign their business practices have weakened the could be launched to create awareness regular formal recruitment industry. The aim about overseas employment. Provincial is to ensure regular, safe and fair recruitment and local governments, and workers’ in line with international labour standards, unions, could also be engaged in the particularly those in Convention No. 181 awareness campaign on overseas and the GPOG. Some recommendations for migration. The BE&OE could consider the management of irregular recruitment the introduction of a pre-employment through intermediaries follow. stage4 by engaging Migrant Resource Centres (MRCs).

3 At present, permission for opening sub-offices is given in deserving cases only, based on the performance and general reputation of an OEP.

4 The term “pre-employment” refers to the stage when a prospective migrant is considering the option of finding a job abroad but has not made a final decision. This stage requires a set of awareness-raising and support interventions, including skills in high demand and legal channels of recruitment, particularly in migrant-dense communities. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary xi

3. A single website, and a single window, 8. More bilateral agreements could could be introduced jointly by the be signed and implemented to PEOPA and BE&OE so that potential curb irregular emigration through migrants could go to one place virtually intermediaries. This could be facilitated or physically and find all the information through the OEC, which recently about overseas employment there, managed the recruitment of workers for including medical screening. the Republic of Korea.

4. There is a need to revisit the recruitment 9. Although neither Nepal nor Sri Lanka process for employment visas directly have been successful in registering sub- arranged by prospective migrants. Many agents during the past five to six years, Pakistanis working in GCC countries, the formal attachment of intermediaries particularly in Dubai, play a key role in to OEPs in Pakistan could be tested sending visas directly to prospective in a few high-migration districts, as a migrants through their contacts with pilot. Both the intermediaries and the foreign employers. The processing of a relevant OEP would be responsible for “direct visa” should be made simple and any malpractice and could be penalized manageable by an intending migrant. and sanctioned. This suggestion has not been supported by the regulators 5. The present report reaffirms the vital and OEPs, but it received the support role that informal channels such as of intermediaries and several friends and relatives play in the growth stakeholders. After such an attachment, and expansion of overseas migration. all transactions should be made through Better documentation of the entire banks and in the name of the OEP who chain, including the amounts paid for will make the payment to the attached obtaining an employment visa from a intermediaries. There is no doubt a Gulf kafeel, can further enhance our possibility that the payments made to understanding of the details of the intermediaries might be charged back actual process that enables a move. to the worker by the OEP. However, an effective monitoring system and 6. Trade test centres and travel agents are awareness among prospective migrants not eligible to engage in the recruitment of payment procedures would check business, and some have already been such malpractices. blacklisted. The BE&OE has created a new policy under which only those 10. Pakistan needs to encourage and trade test centres which conduct the incentivize the use of the “employer trade test for foreign employment and pays” model to exempt migrants from which comply with the code of conduct paying the visa fee and transport costs. and standards set by the BE&OE will be allowed. This policy should be strictly implemented.

7. The procedure for obtaining a license for recruitment could be simplified, and the information should be clearly available, to facilitate individuals interested in the recruitment business, including intermediaries, in obtaining a license.5

5 The procedure for obtaining an OEP license is clearly described on the BE&OE website. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan xii Acronyms

Acronyms

AJK Azad Jammu and Kashmir BE&OE Bureau of Emigration and Overseas Employment BMET Bureau of Manpower, Employment and Training CWA Community Welfare Attache FGD Focus group discussion FIA Federal Investigation Agency GCC Gulf Corporation Council GoP Government of Pakistan GPOG General Principles and Operational Guidelines for Fair Recruitment (ILO) ICMPD International Centre for Migration Policy Development IHRB Institute for Human Rights and Business ILO International Labour Organization IOM International Organization for Migration KP Khyber Pakhtunkhwa KSA Kingdom of Saudi Arabia LBO Lanka Business Online MOP&HRD Ministry of Overseas Pakistanis and Human Resource Development MRC Migrant Resource Centre NAVTTC National Vocational and Technical Training Commission OEC Overseas Employment Corporation OEP Overseas Employment Promoter OPF Overseas Pakistanis Foundation PKR Pakistani rupee POE Protectorate of Emigrants Office POEA Philippines Overseas Employment Administration POEPA Pakistan Overseas Employment Promotors’ Association SLBFE Sri Lanka Bureau of Foreign Employment UN-ESCAP United Nations Economic and Social Commission for Asia and the Pacific Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary 1

1. Introduction, scope and objectives Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 2 1. Introduction, scope and objectives

1.1 Introduction

In Pakistan, formal recruitment processes for example, show that more than 50 are well-established. Pakistanis can legally per cent of international migrants from pursue overseas employment through two Bangladesh identified brokers or dalal channels, either through a public or private as the most important service providers. overseas employment promoter or through In Pakistan, both the friends/relatives “direct” employment, by which an individual and brokers (intermediaries) connect makes an employment arrangement prospective migrants with recruitment through their own efforts or through a agencies in the country or directly with friend or relative working abroad. In the overseas employers (Arif 2009, 2009a). A private sector, recruitment is primarily recent study in Pakistan by Amjad, Arif and conducted through licensed overseas Iqbal (2017) shows that there are three major employment promoters (OEPs). At present, sources through which prospective migrants there are approximately two thousand active obtain information about the opportunities licensed OEPs in the country, associated with of overseas employment: friends and seven Protector of Emigrants Offices. The relatives (57 per cent); individual recruiters Overseas Employment Corporation (OEC) and brokers (37 per cent); and manpower is the only public agency in Pakistan that agencies (5 per cent). It is likely that the role recruits workers for overseas employment, of intermediaries in Pakistan has reduced although its role as a recruiting agency has overtime to some extent because of the been minimal. From 1971 to 2015, around flow of information about overseas jobs, 58 per cent of migrant workers went abroad and awareness regarding the recruitment with the help of a private promoter, while 40 process; for instance, the foreign jobs portal per cent went through the direct channel. of the Bureau of Emigration and Overseas The remaining 2 per cent used the services Employment (BE&OE) provides information of the OEC (Pakistan 2015). However, in on verified foreign jobs. 2017 and 2018, direct employment was the However, it appears from the findings of this favoured mode of employment; this trend study and the observations of stakeholders was reversed again in 2019, when about and media that recruitment intermediaries 59 per cent of migrant workers registered or sub-agents still play major role in Pakistan through OEPs (Pakistan 2019). in the supply chain of the recruitment The private recruitment industry in process for foreign employment. For a Pakistan has grown dramatically over the considerable proportion of people in rural years and comprises private recruitment areas, these intermediaries/sub-agents agencies and intermediaries, operating are the first point of contact or source of in different regions of the country. As the information for overseas employment. use of these intermediaries is not officially Secondly, they connect the prospective permitted, it is extremely difficult to migrant worker with an OEP in Pakistan or make any reliable estimate of the number with an overseas employer directly, for a fee operating in Pakistan. However, a growing that is typically charged to the worker but body of literature in Pakistan as well as sometimes to employers, or to both. There other countries of the region has identified is a dearth of information on the profiling the role of intermediaries in recruitment and functioning of intermediaries in the processes. Siddiqui and Mahmood (2015), recruitment industry in Pakistan. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 1. Introduction, scope and objectives 3

1.2 Scope and objectives

This is a pilot study analysing the business relationships with both prospective migrants practices of Pakistani recruitment agencies and licensed recruiting agents. The study and the role of intermediaries in foreign also provides recommendations on the most employment. In particular, the study identifies effective means of addressing the impacts of the evolution of the recruitment system recruitment intermediaries on the outcomes and the business practices of recruitment for migrant workers through legislative and intermediaries, as well as their profiles and non-legislative measures.

1.3 Research questions

X How has the formal recruitment system for overseas employment evolved over time in Pakistan and what are the main features of this system?

X What channels or modes of recruitment do Pakistani workers use to find a job in overseas labour markets?

X Why and how have recruitment intermediaries evolved in Pakistan?

X Who these intermediaries are or what is their profile?

X How are these intermediaries connected with OEPs in Pakistan or overseas employers?

X What services do intermediaries provide to prospective migrants?

X What are the effective ways of managing intermediaries?

X Should recruiting intermediaries be regularized or their role be abolished? How? RecruitmentRecruitment agency agency business business practices practices and and role role of of intermediaries intermediaries in in the the foreign foreign employment employment industry industry in in Pakistan Pakistan 4 Acknowledgements Executive summary 4

2. Review of the literature Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 2. Review of the literature 5

Recruitment is one of the major functions operating in two countries, can be divided of the labour market, whereby employers into the following stages: (a) an employer seek workers and workers seek jobs (ILO in a destination country decides to hire 2015). Recruitment agents are individuals or foreign workers; (b) the employer secures organizations that incorporate themselves appropriate authority to hire from the host between workers and firms to facilitate, government; (c) the employer seeks help inform or regulate how workers are matched from local recruiters; (d) employers or local to firms. The service can be provided by public recruiters being contacted then get in touch or private recruitment agencies (Eichhorst et with recruiters located in workers’ country al. 2013). The recruitment agents generally of origin; and (e) recruiters find workers for operate in one or more three ways: (i) finding employment in the destination country (ILO specific skills in specific sectors; (ii) providing 2016). Similarly, the hiring process of migrant workers of all kinds in a specific locality; or workers in the country of origin involves (iii) specialist headhunting or search agencies several steps, from finding or selection of (Wolfe and Hartley 2005). workers, to visa clearance and deployment of foreign workers (figure 2.1). The foreign recruitment and hiring process, which involves individuals and institutions

X Figure 2.1. Sending country: Hiring process for migrant workers

Source: ILO 2015.

The Middle East is an attractive market for Bangladesh; the Philippines Overseas Asian migrant workers. Asian countries Employment Administration (POEA); Sri including Bangladesh, India, Pakistan, Lanka Bureau of Foreign Employment Philippines and Sri Lanka have developed (SLBFE); and the Bureau of Emigration and institutions to regulate the hiring or Overseas Employment (BE&OE), Pakistan recruitment of migrant workers and their (UN-ESCAP 2012). While recruitment business placement abroad. These institutes, for practices vary across countries, the most example, include the Bureau of Manpower, common scenario is the involvement of Employment and Training (BMET), private recruitment agencies in the country Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 6 2. Review of the literature

of origin, such as OEPs in Pakistan. These Recruitment intermediaries are mediators agencies or promotors receive job requests and facilitators bringing recruitment from overseas employers or agencies, select agencies and prospective migrant workers prospective migrant workers, process the together. Recruitment intermediaries are necessary emigration documentation sometimes friends and family members and prepares workers for departure. The or known community members who fulfil agencies are in general formal and hold a different functions in the recruitment license to recruit workers (ILO 2016). process (ILO 2016). In Bangladesh, for example, recruitment intermediaries are However, despite the existence of strong commonly referred to as dalal (brokers) and institutions, as outlined above, as well as rules it is estimated there are more than 10,000 and regulations regarding the recruitment dalal in different migrant-prone villages processes, the role and importance of and districts (IOM 2018). Moreover, in most intermediaries working illegally has increased cases these unlicensed sub-agents are a over time (IHRB 2018). These intermediaries major cause of abuse and exploitation in the play a significant role in the foreign recruitment recruitment process in South Asian countries. of semi-skilled and low-skilled workers, They work at community level with no formal particularly from rural areas. This role has not affiliation to licensed recruitment agencies, been extensively researched except for a few often commit malpractices and violations. studies primarily carried out by international organizations such as the International Labour Recruitment intermediaries conduct a variety Organization (ILO) and the International of tasks in order to facilitate international Organization for Migration (IOM). recruitment, such as finding suitable candidates for overseas employment, The literature identifies some factors helping in the preparation of immigration or reasons responsible for the entry documents, facilitating in medical screening of unlicensed intermediaries into the and pre-departure orientation (IOM 2015). international recruitment industry. Morgan They charge fees to migrants and also to and Nolan (2011), for example, show that overseas employers if they work for them when recruitment agencies are unable directly (IHRB 2018). However, several reports to manage in the given time a sufficient have also noted that migrants sometimes number of workers required by their foreign pay fees to a private agency working in a employers, some may turn to intermediaries destination country. For instance, a recent for the supply of workers. Generally, report revealed that nearly all one thousand agencies pay them a substantial commission construction workers based in Qatar to secure workers. Another important interviewed by their researchers reported reason identified in many countries for that they had paid recruitment fees of the entry of recruitment intermediaries between US$726 and 3,651, as well as paying is the absence of private employment for visas, work permits and deposits to their agencies at the village/rural level. The task sponsors or employers upon arrival in Qatar of mobilizing potential migrant workers and (IOM 2015). introducing them to the local agency is left to intermediaries (ILO 2016). In order to facilitate migration, private recruitment agents and intermediaries work A similar factor is that private recruitment with a multitude of interrelated businesses agencies in South Asian and South-East such as medical centres, training centres, Asian countries largely do not operate travel agents, insurance companies and networks of branch offices in small towns or accommodation businesses (Rahman 2011). rural areas, with many maintaining offices The intermediaries operating in the industry only in large cities. In Pakistan, OEPs are benefit from the ignorance of prospective allowed to maintain two branch offices. migrants, whom they usually overcharge However, a common practice of private and do not inform of any grievance redress agencies is the utilization of the services of remedy available to them – probably due intermediaries to find and recruit workers to lack of their own knowledge or out of because it is substantially cheaper than the fear that the migrants may lodge a the costs associated with opening and complaint against them. There have been maintaining branch offices (IOM 2015). Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 2. Review of the literature 7

many reported incidents of fraud through Missions abroad. It also receives complaints these intermediaries. It sometimes happens directly from the OEPs through post, email, that an intermediary takes money from a fax, online complaints and personal visits. prospective migrant and then disappears. For access to justice, a Grievance Cell for The BE&OE refers such complaints to the overseas Pakistanis has been established in Federal Investigation Agency (FIA) for the Supreme Court of Pakistan.6 prosecution (ILO 2O16a). The FIA has also Finally, in order to reduce malpractices an independent jurisdiction to proceed and exploitation by illegal intermediaries, against an intermediary. The BE&OE emphasis is being given on their registration has developed a mechanism to address in different countries. Some nations have complaints launched by overseas Pakistanis; taken steps for the registration of these illegal a complaint cell is functioning in the BE&OE. sub-agents. For example, the Governments The Complaint Cell of the Overseas Pakistanis of Nepal and Sri Lanka, having realized that Foundation (OPF), established in June 2001, the illegal sub-agents should be registered, also receives complaints through: (i) the have made various efforts in this field, but Prime Minister’s Office; (ii) the Ministry of were unable to achieve the desired outcome Overseas Pakistanis and Human Resource (UN-ESCAP 2012).7 Development (MOP&HRD); and (iii) Pakistan’s

6 https://www.opf.org.pk

7 For more detail, see section 7 of this report. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 8 Acknowledgements

3. Conceptual framework and methodology Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 3. Conceptual framework and methodology 9

3.1 Conceptual framework

Since the 1970s, the numbers of legal a disconnect between recruitment agencies private recruitment agencies that facilitate (OEPs) and potential migrants. the international migration process have A study by the IOM (2015) found that private multiplied in Asia as well as Pakistan (ILO recruitment agencies do not open local or 2016a). These agencies provide a wide range regional branch offices because utilizing of services, from matching the demand and the services of intermediaries to find and supply of labour to providing other services, recruit workers is substantially cheaper such as processing all documents and than the costs associated with opening arranging medical screening, pre-departure and maintaining such offices. In Pakistan, orientation, accommodation and skills the permission of getting a visa “directly” training, assessment and certification. Despite from an overseas employer has opened the existence of large numbers of recruiting opportunities for intermediaries to assist agencies, the role and importance of the would-be emigrants in processing his unlicensed intermediaries in the recruitment or her case. Some active return migrants, of workers has increased over time for having overseas employment experience several reasons. The demand for overseas and contacts with foreign employers, appear employment, particularly among young to be the key players for making an informal workers, is very high because of the high level entry into the recruitment industry. of unemployment among youth. In Pakistan, for example, approximately 11 per cent of While licensed private recruitment agencies youth aged 20 to 24 years were unemployed working in countries of origin are formal and in 2018; and this level is double of the overall subject to both legal and industry standards, unemployment level in Pakistan (Pakistan intermediaries are unregistered and with 2018). Overseas migration and associated limited accountability. This informality of inflows of remittances have a demonstrated the intermediaries leads to exploitation, effect on the young population for seeking abusive practices and high financial cost a job and working abroad. This effect is to the worker. It has also been argued that particularly high in high-migration districts. intermediaries enable private agencies “to largely avoid having contacts with migrant There is a dearth of information on overseas workers, to avoid blame for high recruitment job opportunities, particularly in rural areas. fees, and to prevent complaints being lodged The information, even through newspapers, against them” (IOM 2015, 6). rarely reaches prospective migrants in rural areas, who then rely on intermediaries The role of intermediaries in the foreign not only for job opportunities but also employment industry is examined in this for the job offer and its processing.8 It is study in line with the international labour important to note that OEPs in Pakistan standards, particularly the ILO Private have not developed a mechanism to Employment Agencies Convention, 1997 approach intending migrants for finding (No. 181) and the General Principles and candidates who meet the requirements of Operational Guidelines (GPOG) for fair their foreign employers. It has given a room recruitment. These principles and guidelines to intermediaries to enter in the foreign are intended to cover the recruitment of all employment industry. At present, in many workers, including overseas migrant workers, cases, OEPs depend on intermediaries to whether directly by employers or through meet their demand of foreign employers. intermediaries. The international labour This phenomenon is termed in this report as standards aim to: (i) help prevent human

8 To address this challenge, the BE&OE has taken several steps such as uploading of verified foreign jobs on its website, crackdowns against illegal or fake advertisements in collaboration with newspaper managements, the Pakistan Telecommunication Authority (PTA) and FIA, and awareness campaigns through mobile companies, focusing on high emigration districts. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 10 3. Conceptual framework and methodology

trafficking and forced labour; (ii) protect the placement and possibility to return); and rights of workers, including migrant workers, (iii) reduce the cost of labour migration and from abusive and fraudulent practices enhance development outcomes for migrant during the recruitment process (including workers and their families, as well as for pre-selection, selection, transportation, countries of origin and destination.

3.2 Methodology

This pilot study was carried out in Sialkot and information. Only a couple of OEPs in Sialkot Gujranwala, which were selected as being district affirmed openly that a recruiting high-migration districts in province Punjab agency cannot recruit workers without of Pakistan. These districts fall under the the assistance of intermediaries, and they jurisdiction of Protectorate of Emigrants shared a list of five or six intermediaries with Office, Lahore. A combination of quantitative the survey team. and qualitative research methods was employed for data collection (table 3.1). For 3.2.2 Selection of recruitment the present study, a recruitment intermediary is a person engaged in the recruitment of intermediaries Pakistani workers for overseas employment, There was no choice but to take the long without holding a license from the concerned route of visiting different villages and authority, BE&OE. The person may be developing contacts with key informants associated with licensed recruiting agencies to get contact details of intermediaries (or overseas employment promoters) or operating in their areas. From the initial list working independently to meet the demands of 25 to 30 intermediaries in each district, of foreign employers. In exchange for their hardly five or six could be interviewed. services, intermediaries either receive money Some denied that they were performing the as commission by OEPs or charge service role of an intermediary, while those who fees to prospective migrants; sometimes acknowledged their role in the recruitment they charge fee and commission to both. business refused to be interviewed. The main reason for this was probably the raids 3.2.1 Selection of OEPs against some intermediaries by the FIA. It took considerable time (more than four to Using the list of OEPs operating in these five weeks) to find more intermediaries with districts, 20 were formally interviewed (ten the support of local notables and persuade in each district) to obtain the addresses them to be interviewed. Finally, the survey and contact details of persons who work team was able to interview 53 intermediaries for them as mediators and facilitators in June-July, 2019: 28 in Gujranwala district (intermediaries) and connect them with and 25 in Sialkot district (table 3.1). A prospective migrant workers. However, structured questionnaire was used during obtaining details of intermediaries through interviews to obtain information about their the OEPs interviewed under this study was socio-demographic profile, employment unsuccessful, as they generally declined to including overseas work experience, the accept that intermediaries play any role in services they provide to migrant workers, their recruitment business. A meeting was the fee they charge to workers and/or also held with seven prominent OEPs in the fee they receive through OEPs, and Gujranwala to understand their recruitment the nature of their relations with licensed practices, particularly the role of OEPs, prospective migrants, regulators and intermediaries, but they did not provide any overseas employers. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 3. Conceptual framework and methodology 11

3.2.3 Focus group discussions process, how they operate and whether they with relevant stakeholders would like their work be regularized. These five intermediaries were selected from More than 35 prospective and returned amongst 53 intermediaries interviewed migrant workers and their family members during this study. (who used the services of an intermediary for overseas employment) were interviewed 3.2.5 In-depth interviews with through focus group discussions (FGDs). In total, five FGDs were conducted, with stakeholders seven to eight participants in each FGD. More than 20 stakeholders were interviewed The FGDs generated information on the through 14 formal meetings to receive nature of the participants’ relationship their opinions on the informal recruitment with intermediaries, their knowledge about market, the functioning of intermediaries overseas jobs in demand, information and and regularization of their services. The services received from intermediaries, stakeholders included officials working in knowledge and awareness of the presence the MOP&HRD, BE&OE, OEC, the Overseas of formal recruiting agents (OEPs), difficulties Pakistanis Foundation (OPF) and the Pakistan faced by the participants, and complaints Overseas Employment Promotors Association made to the police or any other agency (POEPA), as well as civil society members, against intermediaries. academia, workers’ representatives, and international organizations such as the 3.2.4 Case studies International Centre for Migration Policy Development (ICMPD). Finally, a review of Case studies of five intermediaries were the relevant literature was also carried out developed through in-depth interviews, to identify good recruitment practices in primarily to obtain qualitative information on other countries of the region. The review has how they entered the informal recruitment strengthened the findings of this pilot study.

X Table 3.1. Number of participants surveyed or interviewed, by research method and district

Research method Gujranwala Sialkot Total number

In-depth interview with OEPs 10 10 20

Interviews with intermediaries 28 25 53

Total of five focus group 17 18 35 discussions with prospective and returned migrant workers and their family members

Case studies of OEPs 2 3 5

Case studies of intermediaries 2 3 5

In-depth interviews with 14 meetings with more than 20 stakeholders in stakeholders Islamabad, Lahore and Gujranwala Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 12 3. Conceptual framework and methodology

3.2.6 Study limitations b. The recruitment process is officially managed by the BE&OE through This is a pilot study, based on interviews its seven Protectorate of Emigrants with only 53 recruitment intermediaries Offices. The study area (Gujranwala working in two high-migration districts and Sialkot) is under the Protectorate of the country, Gujranwala and Sialkot, of Emigrants Office, Lahore, which also and supported by some qualitative work covers many other districts that are not including in-depth interviews, case studies the part of this study. and interviews with stakeholders. The study is not representative at the national or c. The study was carried out in Punjab provincial levels; it is not even representative only. Khyber Pakhtunkhwa (KP) has a at the level of the two districts covered in larger share in annual emigration flows this study, for the following reasons: than its share in the total population of Pakistan, but no district from KP has a. The universe of the study (total number been the part of this study. of active intermediaries) has not been documented, making it almost However, despite these limitations, the in- impossible to know the exact numbers, depth analysis of the role of intermediaries even in two migrant-dense districts has generated reliable and important of Punjab. The people engaged in information about their activities for the intermediation are not generally managers and planners, and for future working full time,; they are not a well- representative researches which may cover organized group. Their entry to/exit larger areas of the country. from this business is very common. More importantly, when contacted, they do not affirm their involvement in the recruitment business. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary 13

4. Evolution of the recruitment industry for foreign employment in Pakistan Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 14 4. Evolution of the recruitment industry for foreign employment in Pakistan

Since the mid-1970s Pakistan has been a major country of origin of workers going abroad for temporary employment particularly to the Middle East labour market. During this long journey, Pakistan has developed a system to place its workforce in overseas labour markets. The legal journey is quite long as well, starting from the enactment of the 1922 Emigration Act and replacing it by the 1979 Emigration Ordinance. The Emigration Rules allow licensed private OEPs and agencies to recruit workers for overseas employment, and there is a provision for “direct employment” as well. This section covers the evolution and key features of the recruitment industry and analyses the need for recruitment intermediaries in Pakistan.

4.1 Institutional arrangements

After Independence in 1947, the Emigration provide social welfare to the emigrants and Act 1922 enabled Pakistan to establish their families in Pakistan and abroad by three organizations: (i) the National identifying problems and arranging their Manpower Council; (ii) the Directorate of solutions. Community welfare attachés Seamens’ Welfare; and (iii) the Protectorate (CWAs) are also an integral part of the of Emigrants. In the 1970s, with large-scale institutions, established to strengthen the labour emigration to Gulf Corporation labour migration system. Nineteen CWAs Council (GCC) countries, these three are currently placed in 15 countries including organizations were amalgamated into Bahrain, Greece, Italy, Kuwait, Malaysia, the Bureau of Emigration and Overseas Norway, Oman, Qatar, Saudi Arabia, United Employment (BE&OE), as the regulatory Arab Emirates, United Kingdom and United body to control, facilitate and monitor States. the overseas emigration process. The The Ministry of Overseas Pakistanis was BE&OE presently manages the placement established in 2008. In 2013, the Ministry of of Pakistani workers in overseas labour Overseas Pakistanis and Human Resource markets, according to the Rules and Development (MOP&HRD) was established Regulations of the 1979 Emigration through a merger of two former separate Ordinance, through seven Protectorate of ministries (Ministry of Human Resource Emigrants Offices in Lahore, Rawalpindi and Development and Ministry of Overseas Multan in Punjab; Karachi in Sindh; Peshawar Pakistanis) and with a mandate to seek and Malakand in Khyber Pakhtunkhwa; overseas employment opportunities for and Quetta in Baluchistan. In 1976, the Pakistanis, take actions for the welfare Overseas Employment Corporation (OEC) of workers and their families (within was established with the stated objective Pakistan as well as abroad) and coordinate of providing “competent, reliable and cost- with provincial governments to align the effective human resource from Pakistan national labour laws with the country’s for the international labour market”.9 It international obligations on international is a public sector recruiting agency and labour standards. The Ministry presently primarily deals with the demand from supervises three agencies and departments overseas governments. with the aim of ensuring decent and The Overseas Pakistanis Foundation (OPF), respectful employment for migrants: was set up in 1979, with a mandate to BE&OE, OPF and OEC.

9 https://oec.gov.pk/overview. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 4. Evolution of the recruitment industry for foreign employment in Pakistan 15

4.2 Rules and regulations

The rules and regulations governing the were revised in 2016 and 2018 respectively. The emigration of Pakistani workers have been Emigration Rules 1979 assign responsibilities to improved during the last four decades. For three organizations: BE&OE, OPF and OEC. It is example, the 1922 Act was supplemented by the the responsibility of the BE&OE to control and 1959 Emigration Rules. In the 1970s, as noted regulate the emigration of workers and look earlier, when labour migration to GCC countries after the interests and welfare of emigrants, took off on a large scale, three organizations while OPF is mandated to provide social welfare were amalgamated into the BE&OE. The 1922 to the emigrants and their families in Pakistan Act and 1959 Rules were replaced by the 1979 and abroad. According to the Emigration Emigration Ordinance and the Emigration Rules Ordinance 1979, emigration from Pakistan to all 1979, which determined the conditions under countries of the world is lawful, if the migrant which labour emigration could take place to the worker has a letter of appointment, work satisfaction of potential employers as well as permit, employment visa and emigration visa. Pakistani workers. The Ordinance and the Rules

4.3 Channels of recruitment

Pakistanis can secure overseas employment (figure 4.1). The Emigration Ordinance through two modalities; either through an and its accompanying Rules 1979 specify overseas employment promoter/agency, the functioning of overseas employment which can be public (through OEC) or private, promoters (OEPs). The BE&OE issues licenses to or by “direct employment” efforts, in which, private OEPs, and also regulates and monitors individuals are allowed to secure foreign the emigration of those workers who make employment either through their own effort their own arrangements (direct employment). or by a relative or friend working abroad

X Figure 4.1. Channels of legal recruitment in Pakistan Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 16 4. Evolution of the recruitment industry for foreign employment in Pakistan

In 2019, there were 1,917 active OEPs in the the promoter advertises the foreign country, associated with seven Protectorate of job in newspapers, along with required Emigrants Offices (table 4.1). The promoters qualifications and experience. Prior to initiate the process of recruiting workers workers’ departure from Pakistan, the OEP for foreign employment once they receive which processed their employment is required a request from a public or private employer to provide complete information on the abroad, which they are required to report employment contract that details the terms to the Protector of Emigrants Office, which and conditions of the employment. There is a analyses the submitted demand. Once standard contract for workers going abroad the Protector is satisfied that the OEP is in for employment, which is required to include possession of a valid letter of demand for provisions for healthcare and settlement labour, has power of attorney to recruit of disputes in the case where the employer persons, and the wages and other terms and fails to comply with the obligations. To avoid conditions are satisfactory, the Protector disputes with an employer in the host country, grants permission to the promoter to migrant workers are to be briefed about all proceed with the recruitment of workers. details of the contract/ agreement beforehand After receiving the Protector’s permission, (ILO 2016).

X Table 4.1. Number of active licensed overseas employment promoters (OEPs), by Protector of Emigrants Office, 2019

Protectorate Offices Active licensed OEPs

Rawalpindi 623

Lahore 324

Karachi 298

Malakand 226

Peshawar 243

Multan 202

Quetta 1

Total 1 917

Source: Pakistan 2019.

Direct recruitment is a network via Figure 4.2 shows trends in the recruitment which prospective migrant workers find channels used between 2015 and 2018. employment abroad through their own Around 58 per cent of all migrant workers efforts or with the assistance of a relative or proceeded abroad through an OEP during friend already residing or employed abroad. 2015 and 2016, but the percentage of migrant Their Foreign Service Agreement, contract or workers seeking the OEP’s support gradually offer letter must be signed by the employer dropped in 2017 and 2018 (approximately and attested by the Pakistan Embassy in 40 per cent). A rising trend towards direct that country. A direct employment visa is employment could be witnessed over generally processed by the worker him- or that period: while in 2015 around 40 per herself; however, in the case of Saudi Arabia, cent of migrant workers procured foreign some workers avoid the complicated visa employment through their own efforts, or process and obtain the services of an OEP by through relatives and friends abroad, this paying the processing fee/service charges of figure rose to around 60 per cent in 2018. 6,000 Pakistani rupees (PKR). Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 4. Evolution of the recruitment industry for foreign employment in Pakistan 17

X Figure 4.2. Placement of Pakistani workers abroad, by channel of recruitment (OEPs vs direct)

Source: Pakistan 2019.

4.4 Key features of the recruitment industry in Pakistan

OEPs play a major role in the recruitment skills, violation of contract while abroad, and industry by securing a demand for Pakistani the high cost of emigration including visa, workers from overseas employers/firms, recruitment, travelling and medical costs.10 finding suitable persons and completing More importantly, the recruitment industry the whole process necessary to deploy the is characterized by the heavy involvement of selected workers abroad in a timely way. It is unlicensed intermediaries. justified to say that the recruitment industry The qualitative research undertaken for in Pakistan is largely institutionalized this study indicates that the functioning of and that business practices follow the the industry is quite complex. For example, procedures set in the Emigration Ordinance under the kafala system of Saudi Arabia,11 and Rules 1979. However, irregularities are the demand document shows the name of an not uncommon in terms of mismatch of OEP, who completes the recruitment process.

10 This study has not explored the issue of the cost of migration. However, the intermediaries sampled were asked about the fee they charge to either the prospective migrant or the recruiting agency.

11 The kafala system of Saudi Arabia requires all foreign workers to work under the sponsorship of a Saudi citizen or establishment. The sponsor is known as kafeel in Saudi Arabia, and is responsible for a foreign worker’s legal status in the country. Foreign workers cannot leave Saudi Arabia without an exit permit. See: https://www.arabiangulflife. com/what-is-kafala-sponsorship-system-in-saudi-arabia. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 18 4. Evolution of the recruitment industry for foreign employment in Pakistan

Although direct visa processing from Saudi “processing only” OEPs directly or through employers without the involvement of an intermediaries for endorsement of their OEP is also possible, visa processing at the documents and assistance in processing, Saudi Embassy or Consulate is complicated which includes the medical test, insurance and requires the services of a trained person and pre-departure briefing, among others. such as an OEP. This processing is legally considered to be recruitment; in case of any problem Sometimes, there is little to no role for the faced later by the worker, the OEP is held OEP in generating the demand, in case of responsible. Prospective migrants pay the direct efforts by the prospective migrants OEPs PKR 6,000 to 7,000 (US$38-45) for or friends/relatives working abroad. For their services. This feature of recruitment example, the FGD participants in Daska in Pakistan has been a major reason for tehsil of Sialkot district, said that around 100 the growing disconnect between OEPs and men from their village are presently working potential migrants. There is a very small in Saudi Arabia with the support of two group of OEPs in Sialkot and Gujranwala villagers who have been working in Saudi districts who carry out marketing abroad Arabia for a long time. These two workers and obtain demands for Pakistani workers, have contacts with an OEP in Rawalpindi, recruit the required number of workers, and whose name appears in the visa/demand then help them in the processing as well. documents. The nephew of the OEP resides in the village and helps prospective migrants The information system about job process their documents. However, the opportunities abroad and legal channels involvement of the OEP is limited to getting of recruitment is weak in Pakistan. No the visa endorsed on the passport of an doubt, the information on overseas jobs is emigrant through the Saudi Embassy or available on the websites of the BE&OE and Consulate in Pakistan. Other terms and OEC, as well as the National Vocational and conditions with the employer are not Technical Training Commission (NAVTTC). handled by the OEP. However, the literature as well as qualitative discussions show that potential migrants, A “direct” visa is a common feature in particularly those with low skills living GCC countries other than Saudi Arabia; in rural areas, rely primarily on friends a destination country allows its citizens and relatives, or local intermediaries, for to hire foreign workers “directly”. The such information. Although this system is direct visa is thus a part of the system of gradually being improved by the BE&OE the destination country for hiring foreign for better awareness of workers about workers. The role of migrants working in overseas jobs, the challenge of how these countries is important in the demand to disseminate correct information to for Pakistani workers. One participant intending migrants remains. in the Daska tehsil FGD said that he has a small business in Dubai and also holds The recruitment industry in Pakistan has permission from the host Government to focused on the emigration of low-skilled employ overseas workers. Whenever he and semi-skilled workers, with few skill needs workers, he visits his village and requirements. The share of these workers hires the required number. has remained very high for a long time, contrary to other countries which have Another feature which has rarely been gradually moved to skill-specific emigration. reported in the literature is “processing” vs “recruitment”. A considerable proportion of These weaknesses of the recruitment OEPs have limited their role to “processing industry have given rise to the growing only”, as reported by them during in-depth role and importance of the unlicensed interviews. This means that the OEPs intermediaries. At least in Sialkot and do not maintain contacts with overseas Gujranwala districts, some trade test and employers, and they do not make efforts training centres have assumed the role of to obtain demands for Pakistani workers recruitment intermediaries. The owners from overseas. In most cases they do of a few training centres denied that they not engage themselves in selecting were in recruitment during meetings with prospective migrants, who contact these the survey teams, but all stakeholders as Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 4. Evolution of the recruitment industry for foreign employment in Pakistan 19

well as participants of FGDs confirmed their employers and firms to obtain demands for growing role in recruitment. This is for two Pakistani workers. reasons. The training centres have access Second, some families have invested in to workers seeking overseas employment, their children (particularly those residing and have developed databases, so that some and working in Saudi Arabia and Dubai) to OEPs contact these centres to meet their develop contacts with local employers and demands.12 To tackle this issue, the BE&OE firms for securing demands for Pakistani has begun to take action against these test workers. The family back home takes the trade centres to regulate their activities; responsibility of finding suitable candidates some centres have been blacklisted. and processing of their visa and employment Many travel agents have also taken on the role documents. This scenario shows that many of intermediaries, at least in Gujranwala and intermediaries are in fact working on the Sialkot districts. Six out of 53 intermediaries advice of migrants abroad. were found to be travel agents, which The last feature of the recruitment industry shows that intermediaries are shifting is its concentration in central and southern from individuals to small-scale institutions. Punjab, KP and Azad Jammu and Kashmir However, this does not undermine the role (AJK), though a few districts of southern of traditional intermediaries. Punjab have also increased their participation The operations of traditional intermediaries in overseas employment. The overseas can be classified into different categories. recruitment activities in Baluchistan are First, they are mostly return migrants limited, whereas in Sindh the OEPs are active; who know the recruitment process and however, there is need for improvement in have developed contacts with overseas interior Sindh.

4.5 The need for recruitment intermediaries

The conceptual framework presented in question on how the need for intermediaries section 3 and the discussion carried out in the emerged in a specific area, more than a previous section suggest that the business of quarter (26 per cent of the intermediaries recruitment intermediaries is flourishing for surveyed) remarked that “OEPs are unable to the following reasons: go to villages in search of potential migrants”, which could be termed as a “disconnect i. a growing disconnect between OEPs and between OEPs and prospective migrants”. prospective migrants; Around 20 per cent of the respondents ii. high demand for overseas employment reported that it was the lack of information among the population of Pakistan; on overseas jobs amongst prospective migrant workers that led to the emergence iii. a dearth of information on job of intermediaries. Around 19 per cent of opportunities abroad; and the respondents said that “prospective migrant workers do not trust the unknown the assistance required by intending migrant OEPs”, while 20 per cent considered that workers to process a direct visa. Direct intermediaries are familiar to and trusted by employment has been clearly defined in family members of migrant workers as they Rule 2 (C), which does not cover employment reside in the same village or town (figure 4.3). through intermediaries. In response to the

12 This was reported by the owner/manager of a trade centre interviewed in Gujranwala. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 20 4. Evolution of the recruitment industry for foreign employment in Pakistan

X Figure 4.3. Major reasons for the need of intermediaries in the recruitment business Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary 21

5. Role of intermediaries in recruitment for foreign employment in Pakistan Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 22 5. Role of intermediaries in recruitment for foreign employment in Pakistan

This section presents findings of the study based on the data gathered through the survey of 53 intermediaries in Gujranwala and Sialkot districts A wide range of areas is covered, including the profile and role of intermediaries; their relations with OEPS, foreign employers and prospective migrants; awareness of the regulatory agencies, rules and regulations; placement of workers abroad through intermediaries; and money received from an OEP or a prospective migrant.

5.1 Profile of recruitment intermediaries

All sampled recruitment intermediaries Figure 5.1 suggests that more than half are male; at least in Sialkot and Gujranwala of the intermediaries are young (28–40 districts, no woman was found in this years), as the nature of their work (finding business. Some socio-demographic workers) requires personal engagement with characteristics of the intermediaries are prospective migrants and their families living shown, including age, education, overseas in different areas and regions. Around one- work experience and current main quarter fall into the age group of 41–50 years, occupation. while 21 per cent are over 50 years of age.

X Figure 5.1. Distribution of intermediaries surveyed, by age (percentage)

About one-tenth (11 per cent) of the are likely to have contacts with low-skilled or intermediaries are illiterate, while 40 per semi-skilled workers interested in overseas cent have completed primary or middle level employment. More qualified potential education (Grade 5–8). More than a quarter migrants, or those with better skills, are (28 per cent) have completed matriculation likely to have access to newspapers and/ (Grade 10). The remaining one-fifth have or the internet to obtain the necessary more than ten years of schooling (figure information and process their applications 5.2). With this academic qualification, they for overseas jobs. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 23

X Figure 5.2. Distribution of intermediaries by level of educational attainment (percentage)

Most of the intermediaries are married (87 As expected, 70 per cent of the intermediaries per cent) and living in communities with have earlier worked abroad (figure 5.3); their families, probably for generations. they are returned migrant workers. Their The age and educational distribution of work experience and overseas contacts intermediaries is important for policymakers seem to be among the key factors for being for two reasons: first, educated young involved in the recruitment of workers for persons living in rural areas may be targeted foreign employment. They are aware of the for skill development in order to enhance requirements of overseas labour markets their employability in formal sectors of and understand well how these requirements the economy, and they do not get involved can be met. Their overseas work experience in irregular recruitment practices for is likely to contribute positively to their overseas employment. Second, with these recruitment business activities. However, the characteristics, intermediaries are likely to be illegal engagement of some returned migrant responsive to any legal and/or administrative workers in the recruitment industry also actions against their illegal recruitment indicates the lack of effective socio-economic activities. For example, the survey found a reintegration services available to them. couple of former intermediaries who had abandoned their recruitment activities as the result of serious action taken by the FIA. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 24 5. Role of intermediaries in recruitment for foreign employment in Pakistan

X Figure 5.3. Distribution of intermediaries by overseas work experience (percentage)

Figure 5.4 suggests that more than 60 recruitment business. Such a long stay in per cent of the intermediaries have been the business indicates that they have a good active in the recruitment industry during reputation in their areas. The survey team the last five years, 16 per cent have been also met some former intermediaries who practising for six to ten years, while over 22 had left the business because they could not per cent have ten years of experience in the manage their business effectively.

X Figure 5.4. Distribution of intermediaries by number of years of experience in the recruitment business (percentage) Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 25

As to the main current occupation of the practices. They are not licensed to work intermediaries surveyed, around half of them as foreign employment promoters, which reported that they are engaged in farming, makes their work illegal. shopkeeping or trading. Interestingly, one- Intermediation was reported as the main fifth are either travel agents or property or full-time occupation by 11 per cent of dealers (figure 5.5). Obviously, with this intermediaries surveyed, which they referred occupation they can manage the recruitment as “fieldwork”.13 This includes assisting OEPs business better than those individuals in finding prospective migrant workers engaged in farming or running a shop. As and/or in processing and completing reported earlier in this study, travel agents their necessary documents for foreign who hold a license for travel arrangements employment. The rest of the intermediaries only have gradually increased their share also do this type of fieldwork, but it does not in informal/irregular/illegal recruitment seem to be their full-time activity.

X Figure 5.5. Distribution of intermediaries by main current occupation (percentage)

13 The term “fieldwork” here refers to the activities of intermediaries related to the recruitment of workers for overseas employment. As used in section 3 it refers to the fieldwork carried out for this study, including interviews, FGDs and case studies undertaken by the researcher for this report. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 26 5. Role of intermediaries in recruitment for foreign employment in Pakistan

5.2 Recruitment business practices by intermediaries

Figure 5.6 shows that approximately 60 per them work with three or more OEPs. About cent of the intermediaries work with one one-fifth of the intermediaries surveyed did OEP, while less than one-fifth are associated not report the number of OEPs for whom with two OEPs. Only a small proportion of they work.

X Figure 5.6. Distribution of intermediaries by number of OEPs they work for (percentage)

About two-thirds of the intermediaries line with the job requirements. However, as surveyed have a history of working with an observed earlier, many OEPs are doing only overseas friend or relative and/or a foreign document processing. So in some cases an employer or firm (figure 5.7). Only 36.5 intermediary, using his overseas contacts, per cent have never worked with overseas obtains the job demand and engages an OEP friends, relatives or employer. The data for the processing of documents. Overseas suggest that in most cases, when an OEP friends and relatives of the intermediaries receives an overseas job demand he engages play major roles in running their recruitment an intermediary to find suitable clients in business in Pakistan. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 27

X Figure 5.7. Distribution of intermediaries by working history with overseas friends, relatives or foreign employers (percentage)

Only 11.3 per cent of intermediaries are With regard to the key functions of working full-time in the recruitment business intermediaries, 38 per cent reported that and have an office, while an overwhelming they connect prospective migrant workers majority (89 per cent) carry out their activities in a timely way with recruitment agents or as a part-time business without any office. OEPs. Other key functions mentioned by Some travel agents are likely to be engaged intermediaries include: finding dependable fully in recruitment activities, as observed and trustworthy migrant workers (25.9 during the qualitative work (FGDs and case per cent); supporting migrant workers in studies reinforced these findings).Contrary obtaining the required documents (15.6 per to expectations, the geographical coverage cent); and facilitating the pre-departure of recruitment-related activities has not been process (20 per cent). By dependable and found to be limited to the intermediaries’ trustworthy workers they mean those who native village or its surroundings; rather, their respect the terms or contract they agree with operations stretch to several tehsils and/ intermediaries, such as timely payment of or districts. One-third of the intermediaries fees and completion of all requirements for reported that their operations are not limited going abroad. to any specific geographical area. Figure 5.8 enumerates major difficulties Intermediaries are not an interconnected intermediaries encounter in the recruitment group; they mostly work independently with business. The key challenge, as reported, no or little collaboration with others. Over pertains to poverty and the high cost 62 per cent reported no collaboration with of emigration (35.7 and 29.4 per cent other intermediaries. However, one-third of respectively). The majority of residents in them collaborate with other intermediaries rural areas, with meagre financial resources, for exchanging information or finding find it hard to arrange the heavy recruitment prospective migrant workers. costs. This clearly implies that recruitment for Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 28 5. Role of intermediaries in recruitment for foreign employment in Pakistan

foreign employment mainly depends on the With policies changing there is growing financial capacity to pay the related costs, demand for better-qualified and skilled and not on the skills of the worker. It also human resources in foreign labour markets; shows non-compliance with ILO Convention but a lack of interest in, and aptitude for, No. 181 and the General Principles and taking up technical and vocational training Operational Guidelines for fair recruitment in order to develop skills in high demand (GPOG), which emphasize that recruitment reduces the prospects of emigration. Over costs and fees should not be charged to 8 per cent of intermediaries reported migrant workers, but should be paid by difficulties in finding suitable candidates employers. for foreign jobs due to a lack of skills, or limited skills sets insufficient to meet the Around 13 per cent of the intermediaries requirements of the jobs available. mentioned challenges related to a reduced number of potential migrants due to Problems in identifying trustworthy the introduction of new policies in GCC prospective migrant workers were reported countries, increasing the return flows of by 12 per cent of the intermediaries Pakistani workers, particularly from Saudi surveyed. Being trustworthy is important Arabia. These policies also made it difficult for both parties, intermediaries as well as to keep the families overseas. However, as of migrants. The focus group discussions also 2019 an upward trend in migration has been confirmed that sometimes prospective observed, mainly due to the opening up of migrant workers do not cooperate in paying the Saudi market for Pakistani workers. the agreed amounts in a timely way, and some tend to decline in the middle of the recruitment process.

X Figure 5.8. Types of difficulties faced by intermediaries, and their reasons (percentage)

GCC countries, particularly Oman, Saudi working in Gujranwala and Sialkot assist Arabia and United Arab Emirates, were prospective migrant workers. They do not reported as the major destination countries work for prospective migrants to non-GCC (figure 5.9) for which the intermediaries countries such as those in Europe. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 29

X Figure 5.9. Distribution of intermediaries by destination countries (percentage)

The qualitative data show that low-skilled – that is, finding low- to semi-skilled workers and semi-skilled workers (drivers, masons, and connecting them with OEPs and foreign plumbers, among others) are the main employers primarily through their friends categories for which intermediaries facilitate or relatives abroad. Conversely, foreign the recruitment of migrant workers. As employers do not work with any available discussed earlier, the informal nature of intermediary; contact is usually through recruitment practices and the inclination of friends and relatives of the intermediary. many OEPs towards “processing only” has The participants in the FGDs reported limited the recruitment activities to low- that prospective migrants lack reliable skilled and semi-skilled workers who are information on the regular channels for relatively easy to find and deploy abroad. emigration, and have no or only limited ability This indicates the prevalence of informal to pursue the entire recruitment process. recruitment practices by intermediaries Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 30 5. Role of intermediaries in recruitment for foreign employment in Pakistan

5.3 Relationship between intermediaries and OEPs or foreign employers

Intermediaries generally themselves For the intermediary, the qualities valued approach OEPs to work with them in the in an OEP they want to work with include recruitment business. Previous work trustworthiness, location of the agency, experience, trustworthiness, being a friendship and a better financial deal (figure relative or friend, and proximity of the 5.10). Intermediaries work with OEPs either intermediary to potential migrants are all without an agreement (38 per cent) or with considered by an OEP when deciding about a verbal agreement (62 per cent). selecting and involving an intermediary.

X Figure 5.10. Reasons for an intermediary to work with a particular OEP (percentage)

Around three-quarters (73.8 per cent) of agreement, with 38 per cent working intermediaries reported that they were without even a verbal agreement. Major the ones to contact OEPs and offer their elements of verbal agreements include: a services, while approaches by OEPs reached fixed commission per migrant worker (88 per 26 per cent of the intermediaries surveyed. cent of intermediaries); dispute settlement;14 The informality in such recruitment practices and matters pertaining to agreement is evident: no intermediary reported any violations (4 and 4 per cent respectively).15 written agreement with OEPs, 62 per cent of them were operating through a verbal

14 This refers to potential disputes that can emerge between OEPs and intermediaries during the recruitment process. But no dispute was reported either by the OEPs or by the intermediaries during interviews.

15 The total number of intermediaries included in the analysis was 53. This number can increase when a question allows multiple answers. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 31

As shown in figure 5.11, the major services per cent); facilitation in the pre-departure extended and reported by intermediaries process (24 per cent); and preparation of include: assistance to the OEP or recruitment necessary documents (14 per cent). agency in finding prospective migrants (61

X Figure 5.11. Distribution of intermediaries by type of service offered to OEPs (percentage)

The survey data show that three-quarters of the case studies). Intermediaries consider the intermediaries (73.6 per cent) expressed that they have to shoulder the overall satisfaction with their relationships with the responsibility for the migrant worker, on OEPs they are associated with, and with their account of their mediation role, which makes performance. In response to major issues and a heavy workload.16 Around 4 per cent of difficulties while working with OEPs, 69 per intermediaries pointed out that OEPs often cent mentioned no difficulty, while the rest provide inaccurate information to migrant enumerated a range of issues encountered, workers regarding the nature of the job including gaps in communication (12 per abroad. These findings were also reinforced cent), and lack of clarity on expectations and by qualitative research, where migrant their functions (6 per cent). Another 6 per cent workers find themselves in a situation complained that OEPs do not pay attention different from what was promised before to their problems. Figure 5.12 suggests that departure, in particular with regards to the amongst the issues enumerated, delays in salary package and working conditions. securing migrant workers’ visas, and high visa fees should be included (as noted during

16 The work includes all steps of recruitment, beginning with finding a suitable candidate to assisting in preparation of all documents and helping with pre-departure briefing. Since the question allowed multiple answers, the distribution may exceed 100. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 32 5. Role of intermediaries in recruitment for foreign employment in Pakistan

X Figure 5.12. Types of issues faced by intermediaries working with OEPs

As earlier mentioned, intermediaries the qualitative research (case studies) reported working for foreign employers, that a few intermediaries have developed recruitment agencies and/or friends and connections with foreign employers during relatives abroad. Two-thirds of them (67 per their stay abroad and use these contacts for cent) claimed that they were selected by their recruitment business. For instance, an employer or recruitment agency, or by an intermediary from Gujranwala district friends or relatives abroad, while 33 per cent said: “While I was working, my kafeel asked approached and offered their services to me to find him some Pakistani workers, the overseas actors. The criteria adopted by so I contacted my brother to find suitable foreign recruiters for selecting and working persons to meet the demands of my kafeel. with an intermediary are almost identical to That was the start of my involvement in this what has been earlier reported regarding business. After my return to Pakistan, I am relations between intermediaries and in close contact with the kafeel.” OEPs. Reliability and trustworthiness were Approximately, 11 per cent of the reported as the most important condition intermediaries surveyed reported that they (by 36 per cent), followed by preference for approach specific foreign employers as local friends or relatives (29 per cent), and they offer “better financial deals”. On the persons with previous work experience in a nature of relations with foreign employers, similar field (15.3 per cent). an intermediary in Sialkot district remarked It is worth discussing the preferences of during an in-depth interview: ”We negotiate intermediaries for working with particular the salary and working/living conditions of foreign employers or recruitment agencies. migrant workers with foreign employers.” Thirty-seven per cent reported that they found a particular foreign employer trustworthy to work with. Around half reported the presence of their friends and relatives abroad as a major reason to work for foreign employers. It also appears from Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 33

5.4 Intermediaries, migrant networks and recruitment

The nature of the relationship between visas and employment documents. Typically, intermediaries and OEPs, including friends a local intermediary resident in the same and relatives working abroad or foreign village and a close relative of an OEP, in employers, as discussed above, explains to Rawalpindi finds suitable persons and assists some extent how the former are engaged them in preparing their employment and in the recruitment process. It appears that, visa documents. He then engages the OEP in on one hand, intermediaries assist their Rawalpindi to process the cases. If required, respective OEPs in finding prospective he visits the OEP with prospective migrant migrants to meet the requirements of foreign workers. This also explains how OEPs are employers, and assist workers in completing “only processing” without being involved the necessary documentation including in the whole recruitment process. The medical examination, insurance and pre- presence of an intermediary in this village departure orientation. On the other hand, and his connection with the OEP and fellow many intermediaries are also linked with villagers working in Saudi Arabia show the their friends or relatives working abroad, chain of recruitment. It probably shows the and even with some foreign employers, to existence of an “OEP–intermediary–overseas obtain demands for overseas employment. Pakistani migrants” nexus, where they work In this regard, the salience of migrant together to secure work or job demands for networks was emphasized during the FGDs Pakistani workers and then deploy them and the case studies. Since 70 per cent of abroad. However, it would be unrealistic to the intermediaries surveyed in Sialkot and generalize this phenomenon or nexus, since Gujranwala districts are returned migrants, it was reported and discussed in one location they have developed networks with their only. Further in-depth research may help to friends or relatives working abroad to better understand this chain. arrange jobs for Pakistani workers. As earlier In short, the present analysis suggests that shown in figure 4.2, around 40 per cent of intermediaries are engaged in the recruitment Pakistani migrant workers procured foreign business in three ways: (i) they assist their employment in the recent past through their respective OEPs in finding prospective own efforts or with the help of their relatives migrants in line with the requirements of and friends abroad. It can be argued here foreign employers; (ii) they use their overseas that intermediaries play a role in this type networks (consisting of Pakistani migrants of procurement through their overseas working abroad) to generate demand for networks, but it is not possible to determine Pakistani workers; and (iii) they connect the magnitude of their role. overseas migrant workers who are engaged Moreover, in case of job demands from in employment/visa activities with Pakistani Saudi Arabia, OEPs and intermediaries OEPs to complete the recruitment process. sometimes work together in an interesting Obviously, in all three ways, intermediaries way. A situation discussed during an FGD in remain key to connecting OEPs or foreign the village of Daska in Sialkot illustrates this employers with prospective migrants, nexus, where around 100 residents of one charging a certain amount of commission or village found overseas employment through a fee to OEPs and/or prospective migrants in two overseas Pakistanis, who arranged work return for their services. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 34 5. Role of intermediaries in recruitment for foreign employment in Pakistan

5.5 Relationship between intermediaries and prospective migrants

Prospective or intending migrants use emigrants by using their village-level contacts different ways to emigrate. Some of them and involving local elders (28 and 18 per cent approach a recruiting agency (OEP) and/ respectively). This seems to be a practical or an intermediary. It is also a common way for developing mutual trust between the practice that intermediaries, upon receiving intermediary and intending migrant workers a demand from abroad directly or through and their families before the significant OEPs, approach intending migrant workers investment is made by the latter to secure who meet the requirements of the foreign an overseas job. A little less than 40 per cent employer and assist them in completing the of the intermediaries reported that their recruitment process. former and regular clients (23.7 and 13.8 per cent respectively) were the major source of In order to understand the relationships mobilizing contacts with intending migrant between intermediaries and intending migrant workers. These clients are those individuals workers, the survey explored the sources and their families who have earlier availed and mode of contacts between two parties, themselves of the intermediary’s services. the type of assistance or services extended It suggests that the relationship between by intermediaries, and the difficulties faced intermediaries and prospective migrants is in finding and selecting suitable candidates initially largely indirect but gradually moves for foreign jobs. Figure 5.13 illustrates that to direct, once the process of selection and more than half the intermediaries developed recruitment starts. their contacts or relations with prospective

X Figure 5.13. Modes of contact between intermediaries and prospective migrant workers (percentage) Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 35

With regard to the provision of services a passport and other relevant documents to intending migrant workers, figure 5.14 (9 and 3 per cent respectively); connecting presents a comparison of services offered with OEPs (26 and 17 per cent); assistance by intermediaries in Gujranwala and Sialkot. while in service – for example getting wages Those services related to getting the medical and benefits paid as agreed in the contract examination and certification, referral to skills (12 and 7 per cent); and maintaining contact training centres, and registering for life and and extending post-departure support to disability insurance have been reported by an migrant workers’ families (10 and 1 per cent almost equal percentage of intermediaries respectively). These findings seem to indicate in each district. However, a slightly higher that intermediaries in Gujranwala are more percentage of intermediaries in Gujranwala likely to demonstrate greater receptivity and than in Sialkot reported extending support assistance to their clients. to intending migrant workers in obtaining

X Figure 5.14. Types of service offered by intermediaries (percentage)

The intermediaries surveyed also reported workers do not abide by the agreed terms some problems in their relations with for overseas jobs, particularly in relation to intending migrant workers. The most finances. Some of them even decline to go common reported problem is the “lack abroad after the process of recruitment. of credibility/reliability of some migrants” Another 21 per cent of intermediaries reported by 45 per cent of the intermediaries indicated that intending migrant workers (figure 5.15) This finding was also confirmed usually lack problem-solving and soft skills through qualitative data, suggesting that a (16 and 5 per cent respectively). considerable proportion of intending migrant Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 36 5. Role of intermediaries in recruitment for foreign employment in Pakistan

X Figure 5.15. Types of problem faced by intermediaries with intending migrant workers Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 37

5.6 Profiles of intending migrant workers, as reported by intermediaries

The intermediaries surveyed mentioned qualitative research also supports this that more than 90 per cent of their clients/ observation. The remaining 40 per cent intending migrant workers are young, below of intermediaries reported their clients as the age of 35 years. In terms of previous skilled, proceeding abroad as electricians, overseas work experience, a little less than tile fitters, steel/shuttering fixers, drovers, half of the intermediaries reported that plumbers, masons, sub-engineers, painters their clients have no prior experience of and surveyors. This bifurcation also explains working abroad, followed by 46 per cent of that low- to semi-skilled workers are more their counterparts who have a combination likely to have no or low education, and to lack of clients with or without overseas work information on the sources of foreign jobs experience. “Experienced workers” refers to and actual costs, which makes them reliant those who have already worked abroad and on and vulnerable to local intermediaries. intend to re-migrate on a fresh contract. Such a situation seems to be favourable for intermediaries to misinform workers As noted earlier, the majority of about working conditions and to enhance intermediaries tend to send low-skilled opportunities to charge heavy recruitment and semi-skilled workers (60 per cent) costs to ignorant potential migrants. for overseas jobs (figure 5.16), and the

X Figure 5.16. Types of occupational trades of intending migrant workers Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 38 5. Role of intermediaries in recruitment for foreign employment in Pakistan

5.7 Knowledge and use of existing institutional services by intermediaries

Intermediaries’ knowledge on emigration- OEPs. Around 17.1 per cent of intermediaries related regulations and the use of existing reported that they learnt about the rules institutional services is presented in through the media. figure 5.17, suggesting that only 36 per Around 68 per cent of intermediaries cent of them know about the Emigration reported having knowledge about the Ordinance and Rules 1979, which govern the Protectorate of Emigrants Office (POE) in recruitment of Pakistani workers for overseas Lahore, but a little less than half of them employment. This information deficit on the had visited it during the previous five years, key regulations raises questions about the although in 2019 a majority had done capacity of intermediaries, who playian active so). Their purpose of visiting the POE was role in the recruitment business and may to obtain information on “projects”,17 to end up providing inadequate information process documents, and matters related to their clients about their rights and to visa issuance. By and large, nearly half responsibilities. Friends and relatives have of them were able to get the required emerged as the major source of information information and support, but over 50 per on the Emigration Rules for 42.7 per cent cent did not receive the response or support of the intermediaries, followed by 35.4 per they required. cent who learnt about these rules through

X Figure 5.17. Knowledge of regulations and use of relevant institutions (percentage)

17 “Project” here refers to foreign jobs advertised in the newspapers, for which the intermediaries seek support of the POE in verifying their authenticity. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 39

5.8 Placement of workers abroad by intermediaries

Figure 5.18 presents the number of migrant between one and five migrant workers to workers sent abroad by intermediaries who proceed for overseas employment during have been working with OEPs. Ninety per 2018, while 12 per cent reported sending cent of the intermediaries surveyed were able between six and 15 during the same year. to send abroad 20 or fewer Pakistani workers Although recruitment is a part-time business during the previous year, followed by 5 per for the majority of intermediaries surveyed cent who managed to send 21-40 migrant (primarily handled by a single person), the workers. A similar percentage reported above findings confirm their capacity to place sending 41–60 workers from Sialkot district migrant workers abroad. With regard to the during the previous year. As earlier reported, number of migrant workers sent abroad, the a large number of intermediaries are intermediaries associated with formal OEPs associated with overseas foreign employers, seem to have better capacity than those friend or relatives, and an overwhelming associated with foreign employers, relatives majority of them (87.9 per cent) facilitated and friends.

X Figure 5.18. Number of migrant workers placed overseas by intermediaries working with OEPs

About half the intermediaries consider impact on their recruitment business (figure that during recent years the placement of 5.19). This indicates a growing awareness Pakistani workers in the GCC countries has among prospective migrants that they can declined, but the other half did not agree. find a job overseas and process the required When pressed to explore the major reasons documentation without engaging an for declining labour migration trends, about intermediary. This finding was also confirmed a quarter of the intermediaries reported that by participants in the FGDs suggesting that the rise in direct employment has had an many prospective migrant workers (with Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 40 5. Role of intermediaries in recruitment for foreign employment in Pakistan

better levels of education and exposure) have Around 32 per cent of the intermediaries a great deal of information about effective consider that there has been decline in ways of seeking a job abroad. Friends and demand for Pakistani workers, primarily relatives, and migrants currently working due to their lack of technical and soft skills. abroad, as well as returning workers, are the Another group (26 per cent) perceive that main source of such information. poor living and working conditions and a host of other problems in GCC countries Effective awareness campaigns (particularly have led to reduced interest and placement. from the Government on foreign job Around 12 per cent consider that the rising opportunities and regular channels for number of intermediaries entering the migration) can help reduce the role of recruitment business has created mistrust intermediaries in the recruitment industry of among prospective migrant workers, which Pakistan. The BE&OE is pursuing an awareness has also contributed to declining trends of campaign through social media, SMS services, placement through them. radio messages and briefing sessions.

X Figure 5.19. Perceived reasons for declining placement of Pakistani workers in GCC countries

The survey respondents were asked whether their perceived capacity to manage they would be able to send more workers recruitment practices. However, according abroad if their recruiting activities were to the legislation an intermediary wishing regulated by the authorities concerned. to become regularized needs to apply for Almost all (98 per cent) affirmed confidently an OEP license, the issuance of which will that if regularized they would be able to allow him to process the demands of foreign send more workers abroad, reflecting employers. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 5. Role of intermediaries in recruitment for foreign employment in Pakistan 41

5.9 Amounts charged by intermediaries to OEPs, overseas employers and migrant workers

In order to assess the amounts intermediaries In response to the question concerning average charge clients for their services, the amounts charged to migrant workers, 33 per intermediaries surveyed were asked about the cent reported charging PKR 20,000 (US$121) average service charges received from OEPs to migrant workers in return for their services. and migrant workers. Approximately one-fourth The proportion of intermediaries charging PKR of them reported receiving no amount, whether 10,000 (US$61) or less is around 20 per cent. from an OEP or a migrant worker. Thirty-six Another group (14 per cent) reported receiving per cent reported charging OEPs an amount PKR 15,000 (US$91) per migrant worker (figure to of PKR 10,000 (US$61) per migrant worker, 5.20). These statistics suggest that many followed by 18 and 13 per cent charging PKR intermediaries charge fees for their services to 15,000 (US$91) and 20,000 (US$121) respectively. both migrant workers and OEPs.

X Figure 5.20. Average amounts charged by intermediaries to OEPs and migrant workers (in PKR)

Figure 5.21 illustrates that over 40 per foreign employers was reported as quite cent of intermediaries reported that they high (PKR. ≥50,000 – US$303) per migrant received zero amounts for their services from worker. Here the question arises whether overseas employers, relatives and friends. the amount an intermediary receives from Twenty-four per cent claimed that their an OEP or overseas employer is deducted service charges to foreign employers ranged from the total recruitment costs to a migrant between PRK10,000 and 15,000 (US$61 and worker. Both intermediaries and migrant 91), followed by 18 per cent receiving PKR workers were asked this question through 20,000 (US$121) to 25,000 (US$152) per the FGDs and case studies, but a clear and migrant worker. The commission of some precise response was not received. intermediaries (15 per cent) working with Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 42 5. Role of intermediaries in recruitment for foreign employment in Pakistan

X Figure 5.21. Average amounts charged by intermediaries to overseas employers, relatives and friends (in PKR)

In order to assess the total amount paid pay ranges from PKR 200,000 (US$1,290) by a migrant worker to an intermediary for to PKR 250,000 (US$1,612). Again, this cost securing a foreign job, both the prospective seems to be on the high side and is not in and the returned migrant workers in the FGD line with international labour standards, were asked to share the facts. The reported which emphasize that recruitment costs amount varies between PKR 76,000 (US$490) should be borne by the employer rather and 250,000 (US$1,612).18 The commonly than the migrant worker. Since these are reported amount for finding a job in Dubai is total recruitment costs, the participants PKR 150,000 (US$968). For securing a job in were not sure about the share of the fee that Saudi Arabia, the amount migrant workers went to intermediaries.

18 The US$ amounts are based on the UN exchange rate for April 2020, which is 1 US dollar equivalent to PKR 164.972. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary 43

6. Some divergent views of stakeholders on the role of intermediaries in recruitment Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 44 6. Some divergent views of stakeholders on the role of intermediaries in recruitment

In order to enrich the research findings for overseas employment of Pakistani and obtain the perspective of relevant workers. Many OEPs lack sufficient stakeholders, key informant interviews were capacity to effectively manage the carried out. Most of the views expressed recruitment process. Their role seems to were not much different from those already be further weakening with the growing reported in this paper. Three divergent involvement of travel agents and trade views of the stakeholders are as follows: centres in the recruitment business, which are in the business only due to X The interaction between OEPs and the migrant workers’ lack of information; respective Protector of Emigrants Office otherwise, they cannot generate (POE) is limited to the verifying and overseas labour demands on their own. processing of the relevant documents for emigration. The stakeholders consider X The standard contract/foreign service that the POEs do not generally monitor agreement to be signed by prospective the recruitment business practices of migrants is usually in a foreign language OEPs, such as engaging intermediaries. such as Arabic or English, which is difficult for an intending migrant worker X OEPs are losing their role in the labour to read and understand.19 recruitment market, as they are seen as not very effective in generating demand

19 However, OEPs are responsible for informing the migrant about the terms and conditions of employment in a language he or she understands. A formal briefing is also provided at the Protectorate of Emigrants Offices. Most OEPs independently get an affidavit in Urdu (signed by the migrant) describing the terms and conditions of the foreign employment. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary 45

7. Regional experiences related to regularizing intermediaries Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 46 7. Regional experiences related to regularizing intermediaries

Nepal and Sri Lanka have made efforts to registered sub-agents are allowed to work regularize or register sub-agents. In 2011, with only one agency at a time. There are the Government of Sri Lanka through the around 60,000 registered and unregistered Sri Lanka Bureau of Foreign Employment individuals operating as full-time or part- (SLBFE) started the registration of sub- time sub-agents in Nepal (IOM 2016). agents (those illegally engaged in the However, fewer than 1,000 could have recruitment business). However, the desired been registered. According to the Foreign outcome could not be achieved (UN-ESCAP Employment Act (2007) and the Foreign 2012). In 2012, the SLBFE started issuing Employment Rules (2007), the sub-agents identification cards to illegal sub-agents via must have the following qualifications: the respective licensed recruitment agents X be able to read and write the Nepali for the purpose of registration. However, language fluently; the number of illegal sub-agents was found to be larger than the number of registered X be able to make others understand sub-agents, which led to continued illegal matters relating to foreign employment practices on the part of the sub-agents. In (the assessment and evaluation of this 2016, the SLBFE banned the sub-agents and skill falls to the agency); and asked them to return the ID cards. In March 2017, the Ministry of Foreign Employment X have never been punished for a criminal submitted a Cabinet Paper suggesting offence involving moral turpitude. the registration of illegal sub-agents. The SLBFE was actively involved in revising the The recent emigration of Pakistani workers Sri Lanka Bureau of Foreign Employment to the Republic of Korea seems to have been Act, 1985 and incorporating the registration a good experience, where the recruitment of the illegal sub-agents. One of the most process was entirely completed without the important factors responsible for the involvement of intermediaries. Migration to failure of all these attempts was the lack this corridor took place under a government- of empirical evidence to guide regulatory to-government arrangement and was efforts (LBO 2018). managed by the Overseas Employment Corporation (OEC) of Pakistan, a public Nepal’s Foreign Employment Act (2007) sector entity. Although it was a small-scale specifies that only registered agents and migration, the experience suggests that a sub-agents are permitted to recruit migrant sound bilateral agreement between two workers abroad. They must be registered parties or governments with an effective under the Companies Act (2006) with the implementation strategy can restrict illegal Department of Foreign Employment and or irregular activities in the recruitment are required to deposit a licensee fee. business. The license is renewed every year. The Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan Executive summary 47

8. Conclusions and recommendations Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 48 8. Conclusions and recommendations

Pakistan has a well-structured institutional Several factors, including the overall low skill system, and rules and regulations for levels of the Pakistani workforce, and poor emigration, with 40 years of experience recruitment practices led by intermediaries, in sending workers abroad. The recruiting account for this trend. It is easy for system in the country depends heavily on intermediaries to approach low- and semi- private recruitment agencies, OEPs. However, skilled workers and send them abroad. the role of intermediaries in the recruitment There is no easy or single solution for of workers for overseas employment has improving the governance of recruitment in increased over time. This study indicates the Pakistan, which is increasingly relying on a complexity of the recruitment industry, and variety of informal relationships that evade has identified the following issues. the regulations. Intermediaries do facilitate The OEPs have not developed a system to meeting the demand for foreign workers, but directly approach prospective migrants to their business practices have weakened the meet the demand of overseas employers; regular formal recruitment industry. The aim instead they tend to rely heavily on is to ensure regular, safe and fair recruitment intermediaries, who are not only well in line with international labour standards, connected with intending migrants but also particularly those in Convention No. 181 have direct contacts with overseas employers and the GPOG. Some recommendations for and friends or relatives working abroad. the management of irregular recruitment through intermediaries follow. The recruitment activities of many OEPs are limited to processing, and this is weakening 1. The outreach of OEPs needs to be the whole recruiting system. The only public markedly enhanced, with the aim of sector agency, OEC, has a very small role in connecting them with prospective recruitment – government-to-government, migrants. In this regard, three such as with the Republic of Korea. It is steps may be considered. First, commendable that the OEC is complying the performance of OEPs could be with ILO’s fair recruitment principles. regularly evaluated. The BE&OE However, it is faced with several challenges, presently evaluates their performance particularly as it has not been given a role on the basis of two indicators: the total in approaching overseas private firms and number of emigrants sent abroad, and employers for recruiting Pakistani workers. the number of complaints received It has no presence at district or lower against the OEP. The evaluation administrative levels. criteria should also assess how an OEP approaches prospective emigrants. The dynamics of the informal recruitment Second, the rules allow an OEP to market are changing. Intermediaries used to open two sub-offices. OEPs could be be individuals working in their communities encouraged to open their sub-offices in to find workers, mainly their friends and small towns to increase their presence relatives, for overseas employment. Now, in wider areas.20 If an OEP can manage travel agents based in big cities and small more than two offices, permission for towns, as well as trade centres, are actively such opening may be granted. Third, engaged in the recruitment business. the capacity of OEPs in carrying out There is very high demand for overseas their recruitment business needs to be employment among the growing young monitored regularly. And the capacity labour force, and it is rather easy to exploit of OEPs to understand the value of them through informal activities. The system and compliance with fair recruitment for information provision to jobseekers principles as a business case, needs to on foreign employment opportunities, be enhanced. particularly in rural areas, is quite weak. 2. The BE&OE has started an awareness Pakistan largely sends low-skilled and semi- campaign about overseas employment skilled workers for foreign employment. opportunities and recruitment processes

20 At present, permission for opening sub-offices is given in deserving cases only, based on the performance and general reputation of an OEP. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 8. Conclusions and recommendations 49

through print, electronic and social policy under which only those trade test media. The POEPA and other relevant centres which conduct the trade test for stakeholders need to work with the foreign employment and which comply BE&OE to enhance public awareness with the code of conduct and standards about (i) overseas job opportunities; (ii) set by the BE&OE will be allowed. This legal regular channels of recruitment; and policy should be strictly implemented. (iii) regulations on fees and other costs. The FGD participants even suggested that 7. The procedure for obtaining a license for an immunization-type campaign could recruitment could be simplified, and the be launched to create awareness about information should be clearly available, overseas employment. Provincial and to facilitate individuals interested in local governments, and workers’ unions, the recruitment business, including 22 could also be engaged in the awareness intermediaries, in obtaining a license. campaign on overseas migration. The 8. More bilateral agreements could BE&OE could consider the introduction be signed and implemented to of a pre-employment stage21 by engaging curb irregular emigration through Migrant Resource Centres (MRCs). intermediaries. This could be facilitated 3. A single website, and a single window, through the OEC, which recently could be introduced jointly by the managed the recruitment of workers for PEOPA and BE&OE so that potential the Republic of Korea. migrants could go to one place virtually 9. Although neither Nepal nor Sri Lanka or physically and find all the information have been successful in registering sub- about overseas employment there, agents during the past five to six years, including medical screening. the formal attachment of intermediaries 4. There is a need to revisit the recruitment to OEPs in Pakistan could be tested process for employment visas directly in a few high-migration districts, as a arranged by prospective migrants. Many pilot. Both the intermediaries and the Pakistanis working in GCC countries, relevant OEP would be responsible for particularly in Dubai, play a key role in any malpractice and could be penalized sending visas directly to prospective and sanctioned. This suggestion has migrants through their contacts with not been supported by the regulators foreign employers. The processing of a and OEPs, but it received the support “direct visa” should be made simple and of intermediaries and several manageable by an intending migrant. stakeholders. After such an attachment, all transactions should be made through 5. The present report reaffirms the vital banks and in the name of the OEP who role that informal channels such as will make the payment to the attached friends and relatives play in the growth intermediaries. There is no doubt a and expansion of overseas migration. possibility that the payments made to Better documentation of the entire intermediaries might be charged back chain, including the amounts paid for to the worker by the OEP. However, obtaining an employment visa from a an effective monitoring system and Gulf kafeel, can further enhance our awareness among prospective migrants understanding of the details of the of payment procedures would check actual process that enables a move. such malpractices.

6. Trade test centres and travel agents are 10. Pakistan needs to encourage and not eligible to engage in the recruitment incentivize the use of the “employer business, and some have already been pays” model to exempt migrants from blacklisted. The BE&OE has created a new paying the visa fee and transport costs.

21 The term “pre-employment” refers to the stage when a prospective migrant is considering the option of finding a job abroad but has not made a final decision. This stage requires a set of awareness-raising and support interventions, including skills in high demand and legal channels of recruitment, particularly in migrant-dense communities.

22 The procedure for obtaining an OEP license is clearly described on the BE&OE website. Recruitment agency business practices and role of intermediaries in the foreign employment industry in Pakistan 50 Bibliography

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