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Johannes Lokollo Director, ILO Office, Islamabad "In 1999, a project entitled 'Combating Child Labour in the Carpet Industry in Pakistan' was launched within the framework of the ILO-PCMEA Agreements, with financial support from Pakistan Carpets Manufacturers and Exporters Association (PCMEA) and the US Department of  Labour (USDOL). The project was aimed at reducing child labour in the carpet industry, initially in Sheikhupura and Gujranwala districts. The main purpose was to provide education to working children as an alternative to work. It also provided an opportunity to families of these children to gain access to other employable skills.A family-based approach was adopted and reliance was placed on viable income replacement schemes for the families of carpet-weaving children, particularly mothers, through income-generation and skill development programmes. First Women Bank Limited (FWBL) was the implementing partner of this major component of the project. It provided easy access to its financial and non-financial services to families of carpet weaving children. In a short span of one year, the programme has achieved all its objectives and targets. Micro-Finance Units have been established in Sheikhupura and Gujranwala districts. Area Profile Surveys and Local Economic Base Surveys have been conducted in project areas, identifying 42 micro-businesses. As a result of community organisation, 119 Groups for Income Generation (GIG) have been formed, comprising 869 members; they have generated savings of Rs. 309,676 in 111 savings accounts. As many as 586 micro credits, amounting to Rs 5,193,000/- have been disbursed to families of carpet-weaving children, at an average rate of Rs 9,226. A hundred per cent recovery of amounts due have been made. 144 women have been trained in skills with income-generating potential. By successfully implementing the programme, FWBL has strengthened project interventions geared toward withdrawal of child labour from the carpet industry. FWBL reached out to deprived families to enable sustained increase in their family incomes. The disbursement of second loans in many cases is evidence of FWBL's effective operations and confidence of the families in the bank. FWBL's management has been extremely co-operative in facilitation and implementation of strategies. The Bank's procedures were simplified or tailored in accordance with programme requirements for target beneficiaries. Furthermore, transparency and appropriate use of project funds were hallmarks of FWBL's policies. FWBL's efforts and services have been greatly appreciated by these communities. The programme has increased their hopes and has served as an incentive for them to join the national struggle against child labour. The programme could be replicated as a model in other similar interventions combating child labour. The collaboration between the ILO and FWBL at the national level has been highly appreciated by the ILO headquarters in Geneva, and the project donors as well". |