84% of SMEs informal

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LAHORE:

The Small and Medium Enterprises Development Authority (Smeda) has marked the International Labour Day by ensuring labour rights in all Small and Medium Enterprises (SME) development initiatives.

In a joint statement, Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar, Federal Secretary Ministry of Industries and Production Saif Anjum, and Smeda Chief Executive Officer Socrat Aman reaffirmed full support for boosting employment and skill development in SME sector.

This commitment aligns with the Prime Minister's SME development vision, to be implemented by the Ministry of Industries and Production through SMEDA.

He stated that the Ministry of Industries and Production was working to protect workers' rights while increasing job opportunities in the SME sector under PM's vision. Federal Secretary Saif Anjum informed that the Ministry of Industries and Production (Mop) in partnership with the ILO had launched "the Enterprise Formalisation Project, which will also formalise the labour force to improve their employability and access to the new job markets by developing the skills required for a just transition in response to climate change.

Smeda CEO said, "At Smeda, we are committed to looking after the complete value chain of the SME sector, in which labour plays a pivotal role. He informed that Smeda development projects also include capacity-building initiatives for the labour force of the country to provide them with the necessary tools, training, and resources to compete in the job market.

"Over 84% of Pakistan's workforce operates informally within the SMEs and home-based sectors, creating barriers for businesses and workers alike. This informality limits access to critical markets, financing, social protections and skill development," he said and hoped that the "Enterprise Formalisation Project" launched by MoIP in collaboration with ILO will remove these anomalies.