ILO unveils SME roadmap

The Small and Medium Enterprises Development Authority (SMEDA) and the International Labour Organisation (ILO) held a multi-stakeholder session at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore to share the draft of Pakistan's first National Roadmap for SME and Worker Formalisation.

According to a statement released on Thursday, the meeting highlighted business cases from the textile and auto sectors to showcase the benefits of formalisation. The initiative is part of the SMEDA-ILO project to reduce informality among SMEs and ensure a just transition towards sustainable production. Nearly 84% of Pakistan's workforce still operates outside the formal sector.

SMEDA representatives said CEO Socrat Aman Rana stressed aligning the National Roadmap with Pakistan's SME Policy 2021 and the UN Sustainable Development Cooperation Framework. The plan will offer SMEs incentives, technical support and helpdesks to formalise operations and improve competitiveness. Rana said the initiative enjoys full support of Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, and Federal Secretary Saif Anjum.

Nadia Jehangir Seth, GM Policy and Programme Design at SMEDA, said the government views stronger domestic industries and SME formalisation as key to jobs and sustainable growth.

Welcoming participants, FPCCI Vice President Zain Iftikhar Chaudhary said the roadmap would enhance public-private collaboration. He urged industry and policy to move together to enable formalisation without harming inclusivity. FPCCI Vice President Zaki Aijaz lauded the SMEDA-ILO effort and noted the private sector's readiness to support implementation. He also praised Akhtar Khan's business-friendly approach.

Sheharyar Tahir, GM Gender and Sustainability, briefed the audience on SME initiatives, including a certification programme to help firms secure accreditation for international markets.

Project consultants M Naeem Ansari and M Awais outlined key drivers of change, including market access, simplified compliance, and financial incentives to encourage registration.

ILO and SMEDA will roll out workshops and a national awareness campaign in coming months. The roadmap also proposes sector strategies, training modules, helpdesks in Lahore and Karachi, and digital tools to guide SMEs.