LAHORE: Over 84 percent of Pakistan’s workforce operates informally within SMEs and home-based working sector, which creates obstacles for businesses and workers alike, hindering access to critical markets, financing, social protections, and skill development.
It was stated by Socrat Aman Rana, Chief Executive Officer of the Small and Medium Enterprises Development Authority (SMEDA), while addressing a workshop jointly arranged by SMEDA and ILO for inception of the Enterprise Formalization Project.
The workshop was also addressed by Guillermo Montt, ILO CO for Pakistan, Shusuke Oyobe - Technical Specialist, Formalization (Geneva), Rabia Razzaque, Senior Programme Officer ILO CO Pakistan, Nadia Jahangir Seth, General Manage Policy and Planning, SMEDA and Sheharyar Tahir, Head External Relations Department, SMEDA.
CEO SMEDA, addressing the workshop, as Chief Guest, highlighted key features and objectives of the project declaring the Enterprise Formalization Project, a pivotal step forward in shaping the future of Pakistan’s small and medium enterprises (SMEs) for strengthening the national economy.
He informed that the collaboration of MoIP with the ILO for Enterprise Formalization Project is an outcome of an earlier mapping study by ILO and SMEDA.
This project aims to bridge gaps in formalization and ensure that our SMEs can thrive within a formal, supportive economic framework, he said adding that the project aligns with the MoIP’s vision to create a modern, sustainable, and inclusive economy, one that builds upon Pakistan’s SME Policy 2021, the ILO Decent Work Country Programme for Pakistan (2023–27) (DWCP IV), and the United Nations Sustainable Development Cooperation Framework.
He pointed out that the key objective of this project is to develop a national roadmap for formalizing SMEs and home-based workers, removing barriers to registration and simplifying processes, which would enable even the micro enterprises to benefit from various schemes that can aid in their development. Another key feature of the program, he said, will be a digital tool designed to support large enterprises in formalizing their supply chains, especially SMEs in the textile and automotive sector that will reduce the costs of compliance, making formalization not just feasible, but desirable, for businesses as well.
CEO SMEDA requested to the government bodies, industry leaders, development partners, and business community members to join hands with SMEDA in realizing the MoIP vision of formalized economy.
Earlier, Ms. Nadia Jahangir Seth, GM Policy and Planning Division of SMEDA gave a presentation on key findings from the SMEDA study “Mapping of barriers and opportunities to reduce the informality of enterprises in Pakistan” and support to women entrepreneurs.
On the occasion Guillermo Montt, ILO CO for Pakistan made a review of the Project Implementation Plan and Monitoring Framework. Shusuke Oyobe - Technical Specialist, Formalization (Geneva) spoke on Informal economy & formalization and also highlighted significance of developing a National Roadmap for Enterprises Formalization for Pakistan.
Andre Bongestabs, ILO Specialist on Local Strategies for Decent Work apprised the participants how and why large enterprises can support their Supply Chain Formalization. Whereas, Rabia Razzaque, Senior Programme Officer ILO CO Pakistan highlighted the significance of consultation and role of project stakeholders.
Copyright Business Recorder, 2024
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