SMEDA, ILO Review Enterprise Formalization Initiative

Lahore, August 9, 2025 — The Technical Working Group (TWG) of the Ministry of Industries and Production (MoIP) on Business Formalization reviewed the initial draft of the National Roadmap prepared by SMEDA in collaboration with consultants from the International Labour Organization (ILO) to facilitate the transition of informal businesses into the formal economy.

The review meeting was held at SMEDA’s Head Office on Saturday, August 9.

CEO SMEDA Mr. Socrat Aman Rana highlighted that over 84% of Pakistan’s workforce operates informally within SMEs and the home-based working sector. This creates major challenges such as limited access to markets, financing, social protection, and skills development.

Federal Secretary MoIP Mr. Saif Anjum, who chaired the meeting, noted that the MoIP-ILO collaboration under the Enterprise Formalization Project aims to bridge gaps in the formalization process. He emphasized that informal SMEs can thrive in a formal, supportive economic system if provided with the right incentives and infrastructure.

Earlier, ILO Consultant Usman Khan presented the proposed National Roadmap, which includes targeted measures to simplify and incentivize the registration of microenterprises in the informal sector.

The National Roadmap is a strategic policy document that will guide efforts to strengthen SME competitiveness and promote inclusive, sustainable economic growth across Pakistan.