Government of Pakistan SMEDA ILO

SME Formalization & Just Transition

Success Stories

Textile and automotive sectors drive Pakistan’s exports and employment, yet many of their supply chains remain informal—limiting growth, access to finance, and compliance with global standards. SMEDA and ILO conducted a baseline study with 40 enterprises in Lahore and Karachi, validated through consultations with key industry stakeholders.

The result is a set of ten real-world business cases that showcase local enterprises on their journey from informality to formalization — highlighting the hurdles, milestones, and ultimate benefits of becoming formal.

Mehran Commercial Enterprises

Transforming supply chains through structured growth and compliance.

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Sky High Industries

Scaling up operations with formal business practices and training.

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Bajwa Agro Industries

Modernizing agricultural production through formal registration.

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Pak Orient

Improving workforce welfare and workplace standards via formalization.

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Ayesha Knitwear

Enhancing competitiveness and export-readiness through compliance.

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Sunflower Industries

Promoting sustainable operations and formal workforce inclusion.

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National Automotive

Strengthening local auto parts production through legal compliance.

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Creative Apparels

Achieving international quality standards via formalization.

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Aadam Textiles

Empowering women-led textile units through formal business structures.

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Style Textiles

Driving growth and social responsibility in the formal sector.

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