Promoting rights and social inclusion through organization and formalization (PRS) – Phase 2: Pakistan Component

Background

Nearly 75 per cent of Pakistan’s working-age population is employed in the informal sector, where workers often lack social protection, face OSH risks, low wages, excessive working hours, gender inequality, and violence and harassment at work.

With ILO’s support, the Small and Medium Enterprise Development Authority is developing a comprehensive roadmap to guide regulatory reforms and simplify processes for small and medium-sized enterprises and home-based workers. At the provincial level, important steps have been taken, including the Punjab Domestic Workers Act of 2019.

As a Pathfinder Country under the Global Accelerator on Jobs and Social Protection for Just Transitions, Pakistan has reaffirmed its commitment to advancing formalization and universal social protection.

In this context, the PRS Project works closely with social partners and government to address decent work deficits and gender inequalities in the informal economy, promote formalization, and strengthen partnerships and coordination among policymakers, employers’ organizations, and workers’ organizations to tackle informality and gender inequality.

Project objective:

The project aims to reduce decent work deficits and support the transition of informal economy workers and enterprises to formality. The immediate objectives for the Pakistan component are:

• Strengthen the capacity of national employers’ and workers’ organizations to implement strategies promoting formalization and gender equality.
• Enhance partnerships and coordination among constituents and stakeholders to identify and implement policies supporting formalization and gender equality.
• Raise awareness and build support among wider stakeholders, including the public, on the challenges and vulnerabilities of informal workers and enterprises.

The project will also contribute to stronger institutional capacities, enhanced social dialogue, and improved implementation of national laws, fundamental conventions, and international labour standards.

Areas covered in Pakistan:

Sectors: Domestic work and sanitation
Locations: Faisalbad, Lahore, Sahiwal and Sialkot in Punjab Province, and Karachi in Sindh Province

Partners:

Government: Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD), Labour Departments in Punjab and Sindh Provinces, Sahiwal Municipal Corporation

Trade Unions: Pakistan United Workers Federation (PUWF) and Domestic Workers Union (DWU)

Employers Organizations: Employers Federation of Pakistan (EFP), Lahore Waste Management Company (LWMC) and Water and Sanitation Agency (WASA)

Target beneficiaries:

The ultimate beneficiary of this project are informal domestic and sanitation workers. The project will also benefit government agencies and strengthen the capacity of employers’ and workers’ organizations to represent and support the interests of informal workers and economic units.