Farooq Awan

Pakistan on Wednesday launched its first-ever National Roadmap for Enterprise and Worker Formalization, marking a major step toward strengthening work standards, improving business competitiveness, and supporting inclusive economic growth. The landmark framework was unveiled at a high-level event hosted at the International Labour Organization (ILO) Country Office in Islamabad.

The roadmap has been developed after a year-long collaboration between the ILO, the Small and Medium Enterprises Development Authority (SMEDA) and multiple national institutions. It outlines a unified approach to simplify enterprise registration, enhance labour protections, improve supply chain transparency and help Small and Medium Enterprises (SMEs) meet international market and due diligence expectations.

Speaking at the launch, Geir Tonstol, ILO Country Director for Pakistan, said formalization forms the foundation for competitiveness, resilience and decent work. “This roadmap reflects a shared national effort grounded in evidence, consultation and partnership to simplify compliance, strengthen supply chains, and extend protections to workers across Pakistan. The ILO remains committed to supporting Pakistan as it moves from planning to implementation—through practical reforms, enterprise support, and stronger coordination that benefit businesses and workers alike,” he remarked.

The initiative builds on extensive national diagnostics, field missions and over a dozen stakeholder consultations, while extending ILO’s long-standing support to Pakistan in enterprise development, labour governance, due diligence and transition to formality.

In his keynote address, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan praised the collaboration between ILO, SMEDA, employers and workers’ organizations. He said Pakistan’s future competitiveness rests on responsible business practices, safe working conditions and preparing SMEs for global expectations. “This roadmap sends a strong signal of our commitment to building a more transparent, sustainable and equitable economy,” he added.

Nadia Jahangir Seth, CEO of SMEDA, highlighted SMEDA’s key role in operationalizing the initiative. She said the institution had led national and sectoral consultations, hosted the Roadmap Secretariat, established enterprise helpdesks in Karachi and Lahore, facilitated advisory services for SMEs, supported research on subcontracting and incentive structures, and contributed to a digital compliance and traceability platform. She said implementation would now focus on practical reforms, enterprise facilitation and stronger coordination among ministries, regulators and industry bodies.

The roadmap sets a national vision to reduce informality, extend labour protections, and boost productivity among SMEs and home-based workers. It proposes harmonized regulations, simplified registration processes and digital tools to improve traceability, transparency and supply chain accountability.

It also supports Pakistan’s commitments under GSP+, international due diligence frameworks and emerging climate transition requirements, helping SMEs access markets and comply with global standards. Capacity building, institutional coordination and the role of large enterprises in formalizing supplier networks form core elements of the framework.

The ILO reaffirmed its support for expanding formalization helpdesks, rolling out an enterprise formalization toolkit, strengthening awareness across supply chains, advancing the national digital compliance and traceability platform, and supporting climate-responsive and sector-specific formalization strategies.

Credit: INP-WealthPk