Islamabad (TDI): Pakistan has taken a major step toward enhancing decent work, business competitiveness, and inclusive economic growth with the launch of its first-ever National Roadmap for Enterprise and Worker Formalization.
The initiative aims to reduce informality in the economy, strengthen protections for workers, and boost productivity and competitiveness for Small and Medium Enterprises (SMEs) and home-based workers.
Geir Tonstol, ILO Country Director for Pakistan, highlighted the roadmap’s importance for the country’s economic and social development. “Formalization is the foundation for competitiveness, resilience, and decent work,” he said, adding that the ILO is committed to supporting Pakistan in moving from planning to implementation through practical reforms, enterprise support, and stronger coordination benefiting both businesses and workers.
The landmark initiative was unveiled today at a high-level event hosted at the International Labour Organization (ILO) Country Office, bringing together representatives from government, employers’ and workers’ organizations, development partners and leaders from the textile and automotive sectors.
Developed through a year-long collaboration between the ILO, the Small and Medium Enterprises Development Authority (SMEDA), and a wide network of national institutions, the roadmap outlines a clear set of priorities to simplify enterprise registration, enhance supply chain transparency, strengthen labour compliance, and support Small and Medium Enterprises (SMEs) in adapting to rapidly evolving global and environmental requirements.
The launch builds on extensive national diagnostics, field missions, and more than a dozen consultations. The initiative also builds on ILO’s long-standing support to Pakistan on enterprise development, labour governance, due diligence, and transition to formality.
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Delivering the keynote address, Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries & Production, commended the partnership between ILO, SMEDA, employers, and workers’ organizations. “Pakistan’s future competitiveness depends on strengthening responsible business practices, ensuring safe working conditions, and preparing SMEs for global market expectations. This roadmap sends a strong signal of our commitment to building a more transparent, sustainable, and equitable economy.”
Nadia Jahangir Seth, CEO of SMEDA, highlighted SMEDA’s central role in operationalizing the roadmap. She emphasized that “under the ILO–SMEDA partnership, the institution has led national and sector-specific consultations, hosted the Roadmap Secretariat, established enterprise helpdesks in Karachi and Lahore, facilitated advisory services and capacity building for SMEs, supported studies on subcontracting and incentive structures, and contributed to the digital compliance and traceability platform.”
She further added that the implementation phase will focus on practical reforms, enterprise facilitation, and strengthening coordination among ministries, regulators, and industry associations.
The National Roadmap for Enterprise and Worker Formalization sets a unified vision to reduce informality, strengthen protections for workers, and enhance the productivity and competitiveness of SMEs and home-based Workers. It outlines practical steps to simplify registration, harmonize regulations, and enable enterprises to comply through digital tools that improve traceability, transparency, and supply chain accountability.
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The roadmap supports Pakistan’s commitments under GSP+, international due diligence frameworks, and climate transition requirements, ensuring SMEs can access markets and meet global standards. It emphasizes targeted capacity building, stronger institutional coordination, and the role of large enterprises in formalizing their supplier networks.
ILO reaffirmed its continued support to operationalize formalization helpdesks, roll out the enterprise formalization toolkit, strengthen awareness across supply chains, advance the national digital compliance and traceability platform, and support climate-responsive and sector-specific formalization strategies.
Sohail Majeed
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
