SMEDA News
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.
Special Assistant to the Prime Minister on Industries & Production Haroon Akhtar Khan has reaffirmed the government’s resolve to address the challenges faced by women entrepreneurs and enable them to play an effective role in Pakistan’s economic growth.
Addressing the heads of Women Chambers of Commerce & Industry from Sindh, at a meeting jointly organised by the Small and Medium Enterprises Development Authority (SMEDA) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said the government was fully committed to making women equal partners in national development by providing them an enabling environment to start, grow and scale their businesses.
“This is part of a series of meetings being held under the vision of Prime Minister Shehbaz Sharif to reach out to women entrepreneurs across the country, listen to their issues and address them in a coordinated manner,” Mr Khan said, adding that the government firmly believed in equal opportunities for women in all spheres of life and stressed the need to remove structural barriers hindering their economic participation.
“We must provide a complete ecosystem to women entrepreneurs so they can contribute meaningfully to national growth,” he said.
He directed SMEDA to lead dedicated committees in collaboration with the State Bank of Pakistan, the Pakistan Banks Association and the Trade Development Authority of Pakistan to document and resolve the issues of women entrepreneurs and chambers, particularly from Sindh and Balochistan. He also called for the establishment of a mechanism to handle women's chambers’ issues on priority basis.
He further advised the heads of Women Chambers to maintain close coordination with SMEDA, which he described as a vital bridge between women entrepreneurs and national support initiatives.
Acting CEO SMEDA Nadia J. Seth highlighted the organization’s ongoing initiatives and said work had already started on the implementation of Pakistan’s first Women Entrepreneurship Policy, which is expected to be approved soon by the federal cabinet. She also briefed the participants on SMEDA’s nationwide outreach programme aimed at expanding women’s access to training, finance and markets.
A representative of the Pakistan Banks Association informed the meeting that despite existing challenges, banks and microfinance institutions had extended credit facilities to around 5 million women borrowers across the country. He shared that women now hold 37 percent of Pakistan’s 100 million unique bank accounts. He also announced that an SME Performance Index was being developed to improve data collection and credit assessment for women entrepreneurs.
Ms Fatima Javaid of the State Bank of Pakistan said concessionary finance schemes for SMEs were available and women were allocated specific quotas in several initiatives, including the e-bike scheme. She added that SBP, in collaboration with SMEDA and TDAP, was actively raising awareness about available financial facilities for women entrepreneurs.
The Small and Medium Enterprises Development Authority (SMEDA) and the Pakistan Bureau of Statistics (PBS) have signed a Memorandum of Understanding (MoU) to promote evidence-based policy formulation, data sharing and strategic collaboration for the development of SMEs across Pakistan.
The MoU was signed by Ms Nadia J. Seth, CEO SMEDA, and Muhammad Sarwar Gondal (S.I), Member (SS/RM), Pakistan Bureau of Statistics, on the sidelines of DataFest 2025.
CEO SMEDA Ms Nadia J. Seth said the collaboration is aligned with the SME development vision of Prime Minister Shehbaz Sharif to be implemented under the supervision of SAPM Mr Haroon Akhtar Khan and Secretary MoI&P Mr Saif Anjum for employment generation, industrial development and export promotion through evidence-based SME development initiatives.
She observed that improving the availability and use of SME-related data will enable more targeted policy interventions, strengthen business support programs and help identify opportunities for growth and competitiveness across key sectors.
The collaboration will also include capacity-building trainings, workshops and consultations to support data-driven decision-making for SME development.
This year’s PBS DataFest covered themes of Vision of Uraan Pakistan; Disaster Risk and Climate Resilience; Data for Growth and Investment; Health, Education and Resource Distribution; and Data Ecosystem, AI and Communication.
SMEDA also set up a stall at DataFest 2025, where the team equipped the visitors with information about key initiatives to advance Prime Minister Shehbaz Sharif’s vision of empowering Micro, Small and Medium Enterprises (MSMEs) through financial literacy, access to finance, tech-driven upskilling and climate resilient solutions.
The Small and Medium Enterprises Development Authority (SMEDA) is pleased to share an update on the ongoing SME Finance Research Study, a major national initiative aimed at identifying and addressing the key barriers that small and medium enterprises (SMEs) face in accessing bank financing in Pakistan.
This research study is being conducted in partnership with the Lahore School of Economics (LSE), the Centre for Economic Research in Pakistan (CERP), and the University of Chicago. Together, these institutions are working to generate evidence-based insights that will inform programs that will improve SME access to formal financial services.
To date, the research team has successfully recruited over 700 registered SMEs from across Pakistan and more than 100 bank relationship managers representing a diverse range of financial institutions. Extensive interviews have been conducted with both SME managers and bank officers to better understand the lending process from both sides of the market.
The project has now entered a new phase, in which referrals are being facilitated between participating bank relationship managers and SME managers. In the coming weeks, the research team will conduct confidential follow-up calls to track and cross-verify these interactions. These follow-ups will play a crucial role in shaping SMEDA’s future support programs and financial access policies for SMEs nationwide.
All participating SMEs and relationship managers are strongly encouraged to reach out to their assigned referrals—whether by phone or in person—as every interaction contributes valuable information toward improving SME financing in Pakistan.
As a token of appreciation, certificates of recognition will be awarded to:
- SMEs that successfully make contact with their referred bank relationship managers and complete short follow-up interviews; and
- Bank relationship managers who reach out to all their assigned SME managers and complete regular follow-up interviews, along with their respective branch managers.
These certificates will be jointly issued by SMEDA, the Lahore School of Economics, and the University of Chicago, in recognition of each participant’s contribution to this important national research initiative. Certificates will be issued around December of 2025, please get in touch with referrals as soon as possible.
This study represents a vital step toward creating more inclusive financial systems and supporting Pakistan’s SME sector as a key driver of economic growth and employment.
For further information, please contact:
Muhammad Asif
Deputy General Manager, SME Division
Small and Medium Enterprises Development Authority (SMEDA)
Ph: +92 300 6363899
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The Small and Medium Enterprises Development Authority (SMEDA) is taking measures to support SME sector vendors in developing Electric Vehicles (EVs) facilities in Pakistan.
The initiative has been undertaken under SMEDA’s Vendor Development Program and is in line with the Government of Pakistan’s Electric Vehicle Policy 2025-30.
Mr Socrat Aman Rana, Chief Executive Officer of SMEDA, assured full support to e-vehicle manufacturers in developing a robust subcontracting network within the MSME sector.
He made this commitment during a meeting with a delegation of a company, a strategic ally of China’s BAIC Group actively engaged in introducing and localizing EV technology in Pakistan. Senior officials of SMEDA also attended the meeting.
Speaking on the occasion, Mr Rana stated that Prime Minister Shehbaz Sharif had revitalized SMEDA to accelerate the growth of Micro, Small and Medium Enterprises across the country. In line with the Prime Minister’s vision, SMEDA is prioritizing subcontracting promotion, particularly in the automobile and textile sectors, to enhance local industrial capacity and competitiveness, he added.
He emphasized that SMEDA will extend support to e-vehicle manufacturers in building a strong vendor network and trade bodies such as the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) will also be engaged in the process.
The initiative is expected to open new avenues for technology transfer, local capacity building and sustainable industrial development within Pakistan’s growing electric vehicle ecosystem, he said.
Meanwhile, the company plans to set up an E-Vehicle manufacturing unit in Faisalabad.