ILO and SMEDA: Pakistan Launches National Roadmap for SME and Worker Formalization
Islamabad – 11 December, 2025 (Adnan Hameed) : The Government of Pakistan, in collaboration with the International Labour Organization (ILO) and the Small and Medium Enterprises Development Authority (SMEDA), has officially launched the National Roadmap for SME and Worker Formalization, marking a new era in the formalization of Pakistan’s economy.
Special Assistant to the Prime Minister, Haroon Akhtar Khan, addressed the event, highlighting the vision of Prime Minister Shehbaz Sharif for a stronger, equitable, and sustainable economy. “A new chapter in SME and worker formalization is beginning under the Prime Minister’s leadership,” he stated.
Accordingly to the press note, Haroon Akhtar Khan emphasized that formalizing SMEs and workers is a key milestone for national development. He noted, “An unstructured economy cannot compete with an organized global market, and alignment with the European Union’s new trade policies has become inevitable. Pakistan urgently requires reforms to enhance global competitiveness.”
The National Roadmap aims to simplify and consolidate business registration processes. “Our goal is the establishment of a Single National Firm Registry under the Easy Business Act,” the Special Assistant added.
Key priorities include safeguarding workers’ rights, ensuring a safe working environment, and promoting a transparent contracting system. Highlighting recent provincial reforms, he said, “The new labor codes in Punjab and Sindh represent a significant step toward a formal economy. The Digital Labor Contract Portal will further enhance transparency in the labor market.”
Haroon Akhtar Khan noted the broader benefits of formalization: “Formalization opens doors to global markets and financial support. Digital payments, credit scoring, and incentives will integrate SMEs into the mainstream economy. Formalization is not just a government initiative; it is a national social contract.”
He stressed the need for collaboration among the state, private sector, workers, and development partners, reaffirming the government’s commitment: “Under Prime Minister Shehbaz Sharif’s leadership, every reform will deliver real benefits—for businesses, workers, and the national economy. Pakistan’s progress is tied to formalization, transparency, and strong institutional systems.
The country director of the ILO, Gier Tonstol, CEO SMEDA Ms. Nadia J.seth, Smeda Board members, representatives from government, industry, worker’s organizations, development partners and SME community were present at the launching event.
