National Roadmap Draft Reviewed for Formalizing Informal Businesses

LAHORE: The Technical Working Group (TWG) of the Ministry of Industries and Production (MoIP) convened to assess the preliminary draft of the National Roadmap. This roadmap, a collaborative effort between SMEDA and consultants from the International Labour Organisation, aims to facilitate the transition of informal businesses into the formal sector.

The review took place at the Small and Medium Enterprises Development Authority (SMEDA) headquarters, presided over by Secretary MoIP, Saif Anjum. Attendees included Additional Secretary Industries and Production, Asad Islam Mahni; CEO SMEDA, Socrat Aman Rana; ILO Consultants Usman Khan and Muhammad Awais; along with senior SMEDA officials. Other TWG members from the private and public sectors participated via Zoom.

CEO SMEDA, Socrat Aman Rana, stated that over 84% of Pakistan’s workforce is engaged in the informal sector, primarily within SMEs and home-based work, creating challenges for both businesses and workers. These challenges encompass restricted access to vital markets, funding, social security, and skills enhancement. He noted that the project stems from a previous mapping exercise by ILO and SMEDA, highlighting the necessity for a national roadmap to formalize SMEs and home-based workers by removing registration barriers and simplifying regulatory procedures.

Federal Secretary MoIP, Saif Anjum, mentioned that the MoIP’s collaboration with the ILO on the Enterprise Formalisation Project seeks to attract informal sector enterprises into the formal sector by addressing gaps in the formalization process. He remarked that informal SMEs could prosper within a structured and enabling economic environment by fostering a secure and supportive atmosphere. He expressed confidence that the National Roadmap would empower the SME sector to significantly contribute to the national economy.

Earlier, ILO Consultant Usman Khan delivered a comprehensive presentation on the proposed National Roadmap for transitioning informal businesses toward formalization.