SMEDA, ILO advance roadmap for SME and worker formalization

The Small and Medium Enterprises Development Authority (SMEDA) and the International Labour Organization (ILO)

ISLAMABAD: The Small and Medium Enterprises Development Authority (SMEDA) and the International Labour Organization (ILO) have advanced Pakistan’s agenda for formalizing small and medium enterprises (SMEs) and workers through a National Roadmap aimed at providing a coordinated framework for future action.

The roadmap is expected to guide relevant government institutions and stakeholders in continuing efforts to bring businesses and workers into the formal economy, building on progress achieved under the ILO-funded “SME & Worker Formalization and Just Transition” project.

The implementation and future direction of the roadmap were reviewed during the third and final meeting of the Technical Working Group (TWG) on SME and Worker Formalization. The meeting was held under the chairmanship of Humaira Zia Mufti, Additional Secretary-I, Ministry of Industries and Production.

SMEDA, working under the Ministry of Industries and Production, has played a significant role in advancing the formalization agenda through policy development, stakeholder consultations and practical initiatives designed to support SMEs in their transition towards greater integration with the formal economy.

These efforts are aligned with the government’s broader objective of creating a more supportive business environment, expanding opportunities for entrepreneurs and strengthening the role of SMEs in economic growth and employment generation.

During the meeting, Humaira Zia Mufti appreciated the National Roadmap and its contribution towards enterprise and worker formalization. She stressed the need for coordinated efforts among relevant institutions to ensure that the work carried out during the project could lead to practical and sustainable outcomes for SMEs and workers.

The meeting also reviewed the achievements of the ILO-funded project, progress made on the National Roadmap and the proposed course of action following completion of the project. The ILO formally announced the closure of the project on September 30, 2026, while the financial closure process is still underway.

Sheharyar Tahir, General Manager Policy and Ecosystem at SMEDA, briefed participants on the background of the project and the extensive consultation process undertaken for the development of the National Roadmap. He also outlined implementation activities carried out during the project and presented proposals for the way forward.

Tahir said the roadmap provides a framework for coordinated action to facilitate enterprise and worker formalization, improve working conditions and promote inclusive and sustainable development of the SME sector.

Naeem Ansari, an ILO representative, briefed the participants on the project’s achievements and its contribution to advancing Pakistan’s formalization agenda. He said all technical deliverables under the project had been completed, including the development and launch of the National Roadmap, which was approved by the Technical Working Group.

The National Roadmap includes an implementation matrix outlining continued actions for relevant government organizations and stakeholders. Its implementation is expected to help translate the formalization agenda into practical measures aimed at facilitating businesses, strengthening workers’ integration into the formal economy and supporting more inclusive and sustainable SME growth.

The TWG meeting concluded with a shared understanding that the completion of the ILO-supported project would mark a transition towards sustained institutional efforts for SME and worker formalization in Pakistan.