More than 80 per cent of workers in Pakistan are employed in the informal economy, often without basic labour rights, social security, or workplace protections. In a significant step toward addressing this challenge, representatives from government, employers’ and workers’ organizations reaffirmed their commitment to advancing formal and protected work during a national tripartite forum convened by the International Labour Organization (ILO).
The high-level forum was organized under the Promoting Rights and Social Inclusion through Organization and Formalization (PRS) Phase 2 Project and brought together over 300 participants from across the country. The discussions focused on expanding labour protections and social security coverage in sectors marked by high levels of informality — including domestic work, sanitation services, and the plastic value chain.
Strengthening Pakistan’s Informal Workforce Through Tripartite Collaboration
The forum highlighted the importance of tripartite collaboration — uniting governments, employers, and workers — to drive sustainable change in Pakistan’s labour market.
Geir Tonstol, Country Director of ILO Pakistan, emphasized the critical role of joint efforts:
“No single entity can tackle informality alone, tripartite collaboration is key. When governments, employers, and workers work together, awareness rises, practices improve, and institutions strengthen, ensuring that progress is sustainable.”
This collaborative approach aims to strengthen institutions, expand social dialogue, and improve access to labour protection mechanisms — all essential pillars of decent work and economic inclusion.
Advancing Domestic Workers’ Rights in Punjab
One of the key achievements highlighted at the forum was progress in formalizing domestic work in Punjab.
Through the PRS Phase 2 Project, partners supported the implementation of the Punjab Domestic Workers’ Act by:
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Notifying a minimum wage for domestic workers
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Simplifying registration for social security coverage
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Enhancing coordination between labour institutions
These steps represent a major milestone in bringing domestic workers closer to formal recognition, legal protection, and improved working conditions.
Formation of Punjab’s First Domestic Workers Federation
The initiative also significantly strengthened workers’ representation and voice.
Key achievements include:
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Establishment of new unions in the sanitation and plastic value chain sectors
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Formation of the first provincial Domestic Workers Federation in Punjab
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Mobilization and union registration of more than 10,000 domestic and sanitation workers
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Creation of union council committees to support dispute resolution at the community level
By empowering workers to organize, the project reinforces social dialogue and ensures workers can advocate for fair wages, safer conditions, and social security coverage.
Expanded Social Security for Waste Management Workers
The project also delivered concrete results in the sanitation sector. With ILO support, the Lahore Waste Management Company (LWMC) extended social security coverage to over 18,000 waste management workers.
Improvements included:
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Access to social security benefits
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Provision of personal protective equipment (PPE)
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Paid maternity leave
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Workplace health services
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Enhanced occupational safety and health measures
These interventions mark a significant step toward ensuring decent work standards for sanitation workers in Pakistan.
Government Commitment to Formalization and Financial Inclusion
Tauseef Dilshad Khattana, Additional Secretary of the Department of Labour, Punjab, reaffirmed the government’s commitment to supporting workers’ transition to formal employment. He highlighted initiatives such as digital wallet accounts for low-income households aimed at:
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Enhancing financial inclusion
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Increasing transparency in wage payments
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Strengthening accountability in employment relationships
Digital financial tools are increasingly viewed as a key enabler of formalization, particularly for vulnerable and low-income workers.
Unlocking Pathways to Decent Work in Pakistan
Heejin Ahn, Regional Project Coordinator of the PRS Project, underscored the broader impact of coordinated reforms:
“While informality is complex and multifaceted, our collective achievements through the project demonstrate that when policies, institutions and systems work together, we can unlock pathways to formalization for workers, enhancing their visibility, dignity and livelihoods.”
The Road Ahead: Scaling Sustainable Interventions
The national tripartite forum concluded with a renewed commitment to scaling up sustainable interventions nationwide. Priorities include:
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Strengthening labour institutions
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Expanding social protection coverage
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Deepening social dialogue mechanisms
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Supporting worker organization and unionization
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Enhancing occupational safety and health standards
With more than four out of five workers currently in informal employment, Pakistan’s transition to a more inclusive, formalized labour market remains both a challenge and an opportunity. Through coordinated action led by the International Labour Organization and national partners, meaningful progress is being made toward securing decent work, social protection, and dignity for all workers.
