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Lahore: The Ministry of Industries and Production (MoIP) in collaboration with the International Labor Organization (ILO) is working on a National Roadmap to transition informal businesses into the formal sector. The Technical Working Group (TWG) held a review meeting at the Small and Medium Enterprises Development Authority (SMEDA) head office to discuss the draft roadmap.
The meeting, chaired by Mr. Saif Anjum, Secretary MoIP, included key participants such as Mr. Asad Islam Mahni, Additional Secretary Industries and Production, Mr. Socrat Aman Rana, CEO SMEDA, and ILO Consultants Mr. Usman Khan and Mr. Muhammad Awais. Additional members from both private and public sectors participated via Zoom.
Mr. Socrat Aman Rana highlighted that over 84% of Pakistan’s workforce is employed informally within small and medium enterprises and the home-based working sector. This informality presents challenges for businesses and workers, limiting access to essential markets, financing, social protections, and skill development. The initiative stems from a previous study by ILO and SMEDA, which identified the necessity for a national roadmap to formalize SMEs and home-based workers.
Mr. Saif Anjum emphasized that the collaboration between MoIP and ILO under the Enterprise Formalization Project aims to integrate informal enterprises into the formal sector. He expressed confidence that the roadmap would create a supportive environment for these enterprises, allowing them to contribute significantly to the national economy.
During the meeting, Mr. Usman Khan, ILO Consultant, provided a detailed presentation on the proposed roadmap. The presentation included proposals for simplifying the registration process and incentivizing micro enterprises to formalize their operations.