The Government of Pakistan, in collaboration with the International Labour Organization (ILO) and the Small and Medium Enterprises Development Authority (SMEDA), has launched the National Roadmap for SME and Worker Formalization, a major initiative aimed at strengthening the country’s economy and protecting workers’ rights.
Special Assistant to the Prime Minister, Haroon Akhtar Khan, said the roadmap reflects Prime Minister Shehbaz Sharif’s vision for a more equitable, sustainable, and globally competitive economy. He noted that formalizing SMEs and workers is critical to national development and integration with international markets, especially in line with new European Union trade policies.
The roadmap aims to simplify business registration and create a Single National Firm Registry under the Easy Business Act. Key priorities include ensuring safe working conditions, protecting workers’ rights, and promoting a transparent contracting system. Recent provincial labor reforms in Punjab and Sindh, along with the Digital Labor Contract Portal, are part of the broader formalization strategy.
Haroon Akhtar Khan highlighted the wider benefits, stating that formalization will help SMEs access global markets, financial support, digital payments, and credit scoring, while integrating them into the mainstream economy. He emphasized the need for collaboration among government, private sector, workers, and development partners to ensure that reforms deliver tangible benefits for businesses, workers, and the national economy.
The launch event was attended by ILO Country Director Gier Tonstol, SMEDA CEO Nadia J. Seth, SMEDA Board members, representatives from government and industry, worker organizations, development partners, and members of the SME community.
