The Government of Pakistan has launched the country’s first National Roadmap for Enterprise & Worker Formalization, marking a significant step toward strengthening decent work, enhancing SME competitiveness and advancing inclusive economic growth.

The roadmap was unveiled at a high-level event held at the ILO Country Office in Islamabad, attended by representatives from government, employers’ and workers’ organizations, development partners and leaders from key sectors including textiles and automotive manufacturing.

Developed through a year-long process led by ILO and SMEDA and supported by extensive consultations, field missions and sectoral assessments, the roadmap outlines clear priorities to simplify enterprise registration, strengthen labour compliance, improve supply chain transparency and prepare SMEs for international market requirements.

In his keynote address, Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, highlighted Prime Minister Shehbaz Sharif’s vision for a stronger, equitable and sustainable economy. He noted that a new chapter in SME and worker formalization is beginning, stressing that an unstructured economy cannot compete with an organized global market.

He emphasized that alignment with evolving European Union trade policies has become essential and Pakistan requires urgent reforms to enhance global competitiveness. He added that the government’s goal is to establish a Single National Firm Registry under Asaan Karobar Act to streamline and consolidate business registration processes.

He further highlighted the importance of safeguarding workers’ rights, ensuring a safe working environment and promoting transparent contracting systems.

ILO Country Director for Pakistan, Geir Tonstol, underscored the significance of this milestone for the country’s social and economic development. He stated that formalization is the foundation for competitiveness, resilience and decent work.

The roadmap represents a shared national effort grounded in evidence, partnership and broad-based consultation, he said and reaffirmed the ILO’s commitment to supporting Pakistan in transitioning from planning to implementation through practical reforms, enterprise support and stronger institutional coordination.

CEO SMEDA Nadia Jahangir Seth highlighted the institution’s central role in shaping and operationalizing the roadmap. She noted that under the ILO-SMEDA partnership, SMEDA led national and sector-specific consultations, hosted the Roadmap Secretariat, established enterprise helpdesks in Karachi and Lahore, strengthened advisory and capacity-building services for SMEs, and supported studies on subcontracting and incentive structures.

The roadmap sets a unified national vision to reduce informality, improve protections for workers and enhance the productivity and competitiveness of SMEs and home-based workers. It also supports Pakistan’s commitments under GSP+, international due diligence frameworks and climate transition requirements.