The Government of Pakistan, in partnership with the International Labour Organization and the Small and Medium Enterprises Development Authority, has launched the National Roadmap for SME and worker formalization in Islamabad, a move aimed at bringing small businesses and workers into the formal economy.
Special Assistant to the Prime Minister Haroon Akhtar Khan said the plan reflects Prime Minister Shehbaz Sharif’s vision for a stronger, equitable and sustainable economy, adding “A new chapter in SME and worker formalization is beginning under the Prime Minister’s leadership.”
Mr Khan stressed that an unstructured economy cannot compete in the organised global market and that alignment with new European Union trade policies makes urgent reforms necessary to boost competitiveness. A core objective of the roadmap is to simplify and consolidate business registration processes, including the establishment of a Single National Firm Registry under the Easy Business Act.
Safeguarding workers’ rights and ensuring safe workplaces are central to the roadmap, with commitments to a transparent contracting system and the rollout of a Digital Labor Contract Portal to strengthen transparency in the labour market. Recent provincial labour code reforms in Punjab and Sindh were highlighted as important steps toward a formal economy.
Haroon Akhtar Khan noted that SME formalization will open doors to global markets and financial support, explaining that digital payments, credit scoring and targeted incentives will help integrate SMEs into the mainstream economy and expand access to finance.
The roadmap calls for close collaboration among the state, the private sector, workers and development partners to ensure reforms deliver tangible benefits for businesses and workers. The launch was attended by ILO country director Gier Tonstol, SMEDA CEO Nadia J. Seth, SMEDA board members, representatives from government and industry, worker organisations, development partners and members of the SME community.
