ISLAMABAD: The government, in collaboration with the International Labour Organisation (ILO) and the Small and Medium Enterprise Development Authority (Smeda), has launched the National Roadmap for SME and Worker Formalisation.

Special Assistant to the Prime Minister Haroon Akhtar Khan, ILO Country Director Gier Tonstol and Smeda’s acting CEO Nadia J. Seth launched the roadmap.

The roadmap aims to simplify and consolidate business registration processes, and a Single National Firm Registry will be established under the Easy Business Act.

It was highlighted that the formalisation of workers was not about penalising businesses but about unlocking opportunity, access to finance, technology, new markets, decent work, and global competitiveness. The workers’ formalisation means fair wages, written contracts, safety at work, social protection, and dignity.

Mr Khan referred to a report that despite progress made by the SMEs under GSP+ scheme, Pakistan’s labour compliance score remains low. While the state the National Roadmap would mean higher productivity, accurate economic data, stronger revenues, and a more resilient economic structure.

He noted that unstructured economy cannot compete with an organised global market, and alignment with the European Union’s new trade policies has become inevitable. “Pakistan urgently requires reforms to enhance global competitiveness,” Mr Khan added.

Key priorities include safeguarding workers’ rights, ensuring a safe working environment, and promoting a transparent contracting system.

While Pakistan has around 7.13 million SMEs but less than 10pc of them were registered, this includes only 245,000 with the SECP. The National Roadmap will be initially implemented as pilot actions in garments and auto-parts sectors.

Published in Dawn, December 12th, 2025