‘SME Roadmap is central pillar of economic transformation’

LAHORE: The implementation on National SME and Worker Formalisation Roadmap will pave way for competitive economic growth of Pakistan by promoting stronger institutions, higher productivity, and improved working conditions of the SME sector.

It was jointly stated by Haroon Akhtar Khan, Special Assistant to PM on Industries and Production (MoIP), Malik Aman, Joint Secretary MoIP, Nadia Jehangir Seth, CEO SMEDA and Geir T Tonstol, Country Director ILO in Pakistan while commenting on Pakistan’s first National SME and Worker Formalisation Roadmap.

SAPM Haroon Akhtar Khan, described the Roadmap as a central pillar of Pakistan’s economic transformation. He explained that formalisation expands opportunities by improving access to finance, technology, export markets, and decent work. With 44 percent of GDP remaining informal and millions of workers outside social protection, he emphasised the need for structural reforms that align Pakistan with modern supply chain expectations.

Joint Secretary Industries & Production Malik Aman highlighted that the initiative reflects government’s effort driven through the Ministry’s Technical Working Group. The Roadmap, he noted, presents realistic and actionable pathways for simplifying SME on boarding, harmonising labour definitions across federal and provincial institutions, and expanding digital mechanisms for easing compliance.

Nadia Jahangir Seth, CEO SMEDA, emphasised that SMEs are central to Pakistan’s economic activity and that formalisation is vital for unlocking their growth potential.

She also said that SMEDA will advance the SME One Window Initiative and ensure informal enterprises are actively engaged in policy dialogue through both digital and physical outreach platforms. She informed that ILO and SMEDA will roll out nationwide awareness programs, capacity-building workshops, and technical support to help SMEs navigate the transition to formalisation.

Geir T Tonstol, Director ILO Country Office for Pakistan reaffirmed the ILO’s commitment to supporting the Government of Pakistan and SMEDA in this national effort.

He said that the Roadmap’s focus on simplifying procedures, improving compliance mechanisms, and enabling SMEs to meet global standards will contribute to a more resilient and inclusive economic environment.

It is notable that Pakistan continues to face widespread informality, with 84 percent of the workforce operating outside the formal sector. This undermines productivity, limits access to finance, weakens global competitiveness, and makes it difficult for enterprises to meet international requirements such as GSP+ commitments, EU Green Deal provisions, and emerging global due-diligence standards.

Copyright Business Recorder, 2025