Contents

1. ACKNOWLEDGMENT 2

2. EXECUTIVE SUMMARY 2

3. DETAILED ACTIVITY COMPLETION REPORT 3

3.1. Flood Impact and Strategic Pivot (September – November 2025) 3

3.2. Institutional MoUs and Strategic Partnerships 3

3.3. Center Infrastructure and Security 4

3.4. Training Commencement and Quality Assurance 4

4. CHALLENGES 4

5. FINANCIAL SUMMARY FOR THE REPORTING PERIOD 4

6. NEXT STEPS (January – March 2026) 5

7. Pictures 5

FIRST QUARTERLY PROGRESS REPORT

From Tradition to Transformation: Empowering Women through Machine Embroidery

Islampur Cottage Industries Association (ICIA)

Funder: NextWorldNow Community Investments (NWN)

Reporting Period: 1st September 2025 to Date

Date of Submission: 20th December 2025 

Submitted by: Hazer Gul, Executive Director, ICIA

1. ACKNOWLEDGMENT 

The Islampur Cottage Industries Association (ICIA) extends its deepest appreciation to NextWorldNow (NWN) for the catalytic grant that made this initiative possible. Your belief and investment provided the essential foundation upon which we have built. We also formally recognize and thank the District Social Welfare Department, Swat, for their invaluable partnership in providing critical machinery, technical staff, and certification authority, and the Village Council Islampur for their proactive strategic guidance and local stewardship. This multi-stakeholder collaborative model, combining international funding, government resources, and community leadership, has proven to be the cornerstone of our resilience and early success, particularly in overcoming the significant setback detailed below.

2. EXECUTIVE SUMMARY

The first quarter of the project was defined by extensive foundational work and a strategic pivot in response to natural disaster. Following the catastrophic floods of mid-August 2025, the project’s initial timeline was substantially repurposed from direct training to intensive recovery, partnership building, and center establishment. These efforts have successfully created a fully operational hub, leading to the official commencement of training on December 1, 2025, with all 60 trainees enrolled and actively learning.

The floods of August 14 caused a severe delay by damaging infrastructure. The period from September to November was dedicated to critical preparatory activities: restoring the facility, securing pivotal partnerships, procuring and installing equipment, and completing trainee recruitment and orientation.

The project has been structured to offer two clear pathways for graduates:

1. The Workplace Hub:

The 9-room center is designed to function as a permanent 'Workplace Hub' where graduates can access industrial machinery to fulfill commercial orders immediately upon completion of their training. For those graduates who cannot be accommodated on-site due to high enrollment demand, a strategic partnership with the District Zakat Department ensures they are prioritized for startup grants to establish home-based micro-enterprises.

2. The Entrepreneurship Pathway:

In response to high local demand, ICIA has proactively partnered with the District Zakat Department to develop a startup grant program for graduates seeking to establish home-based micro-enterprises.

While formal training began later than initially planned, strategic partnerships enabled us to exceed key capacity targets within the quarter, laying a superior foundation for delivery.

Metric

Target (Annual)

Achieved (Q1)

Status and Notes

Direct Trainees Enrolled

60 Women

60 Enrolled

100% Achieved. Formal training commenced December 1, 2025.

Vocational Trades Planned

1 Trade

3 Trades

300% Planned. Curriculum expanded; instruction to be phased in.

Machinery Inventory

15 Units

44 Units

293% Achieved. Leveraged via MoU with Social Welfare Dept., enabling higher capacity.

3. DETAILED ACTIVITY COMPLETION REPORT

3.1. Flood Impact and Strategic Pivot (September – November 2025)

The major flooding on August 14, 2025, damaged local infrastructure, necessitating a shift in Q1 priorities from immediate training to recovery and setup. Although the project agreement was signed earlier, the official implementation start date was established as September 1, 2025, due to the catastrophic floods of August 14. This catastrophic event caused a total collapse of local electricity and communication infrastructure, necessitating a one-month delay to focus on facility restoration and emergency setup before training could commence. The period from September to November was intensively used for:

• Facility restoration and lease finalization.

• Securing the MoU with the Social Welfare Department.

• Procurement, delivery, and installation of all 44 machines.

• Comprehensive recruitment, vetting, and orientation of the 60-trainee cohort.

3.2. Institutional MoUs and Strategic Partnerships

Social Welfare Department:

A formal Memorandum of Understanding (MoU) was signed, resulting in the provision of 29 industrial-grade embroidery machines and the assignment of a government Master Trainer. This partnership also grants graduates a government-recognized vocational certificate.

Village Council Islampur:

Two formal coordination meetings were held. An MoU for "needs-based" operational funding is finalized for signing in January 2026. Building on the two successful coordination meetings held this quarter, ICIA is scheduled to formally sign a second Memorandum of Understanding (MoU) with the Village Council Islampur in January 2026. This agreement will institutionalize a 'needs-based' funding framework, allowing the Council to provide direct financial support for center improvements and operational contingencies as the project scales.

District Zakat Department:

A partnership framework was established to provide startup grants for home-based businesses, creating the entrepreneurship pathway.

3.3. Center Infrastructure and Security

A secure, nine-room facility was fully established as the project hub, equipped with 44 workstations and all necessary furniture. To ensure a culturally appropriate and secure learning environment for the 60 female trainees, a 24-hour security protocol has been established through a collaborative staffing model. The District Social Welfare Department has provided one Daytime Security Guard and one Female Helper to assist with daily operations, while ICIA has independently hired a dedicated Night Watchman to ensure the 24-hour protection of the project's machinery and assets.

3.4. Training Commencement and Quality Assurance

Formal vocational training successfully commenced on December 1, 2025. The 60 enrolled trainees, under the supervision of four qualified instructors (including the government Master Trainer), have begun their foundational instruction. The expanded curriculum of three trades will be delivered in a phased manner.

In response to a comprehensive needs assessment by the Community Advisory Board, the project expanded its curriculum from a single trade to include Machine Embroidery, Knitting, and Sewing/Tailoring. This diversification ensures that the 60 trainees are equipped with a versatile skill set that meets varied market demands and prevents local economic saturation in any single craft.

4. CHALLENGES

In strict adherence to local cultural norms and to prioritize the privacy and dignity of our female trainees, ICIA maintains a policy of restricted visual documentation regarding participant faces. To ensure full transparency and accountability, monitoring and verification are instead focused on high-detail photography of the 44 workstations, physical facility infrastructure, attendance records, and the quality of production samples.

5. FINANCIAL SUMMARY FOR THE REPORTING PERIOD 

Funds were primarily invested in establishing the project's physical foundation and operational capacity.

Description

PKR Amount

USD Equivalent

Total Funds Mobilized

1,855,683

$6,586

Capital Equipment (15 Machines)

1,435,000

$5,093

Center Rent (6-Month Advance)

150,000

$532

Training Materials & Initial Supplies

70,290

$249

Total Expenses Incurred

1,660,362

$5,893

Current Balance

195,321

$693

The project is currently operating with the initial 50% tranche of the approved NWN grant, which has been strategically invested in capital assets and infrastructure setup. Following the submission of this QPR-1 and the accompanying verified receipts, ICIA formally requests the disbursement of the next 35% installment to sustain the intensive training delivery phase and ongoing operational costs.

6. NEXT STEPS (January – March 2026)

1. Training Delivery: 

Conduct intensive skills development for the first cohort through Q2.

2. Operational Sustainability: 

Disburse staff salaries and sign the funding MoU with the Village Council.

3. Entrepreneurship Launch: 

Finalize and launch the Zakat startup grant application process.

4. Production Preparation: 

Begin developing sample products and identifying market partners for graduate output.

Attachment Note:

This report is accompanied by separate PDF files containing clear, scanned copies of all financial receipts for machinery, rent, and material expenditures listed in Section 5.