The invisible backbone

Informal work and sustainable growth  

Muslim Town Lahore is a living example of how Pakistan’s urban neighborhoods are rapidly changing. Originally planned as a residential area under the Lahore Development Authority, the area has gradually transformed into a mixed commercial zone. Tuition academies, small retail shops, clinics, food outlets, and home-based businesses now operate alongside residential homes. This transformation reflects economic vigour, but it also raises important questions about sustainability and decent work.

The concept of “decent work and economic growth” in the United Nations’ Sustainable Development Goal 8 goes beyond job creation. It calls for productive employment, business formalization, labour protection, and sustainable economic practices. Most commercial activities in Muslim Town operate informally. Shop assistants, delivery riders, street vendors, and small entrepreneurs often operate without formal contracts, social security, or business registration.

Informal employment plays a crucial role in sustaining livelihoods, especially in urban Pakistan where unemployment is a serious concern. Small businesses in Muslim Town provide income opportunities for youth, women and middle income families. However the absence of regulation creates risks. Workers lack job security, and businesses often operate without complying with environmental or zoning regulations.

Under the United Nations Sustainable Development Goals, specifically SDG 8, the global community has pledged to promote “Decent Work and Economic Growth.” A key part of this goal is the transition of informal employment into the formal sector. In a residential and commercial area like Muslim Town, which falls under the sophisticated planning of the Urban Unit, one would expect to see this transition in action. Instead, we see a widening gap. Our current planning models focus almost entirely on hard infrastructure roads, bridges, and glass-fronted buildings while ignoring the soft infrastructure of the people who work on the curbsides

The rapid commercialization of Muslim Town has also put pressure on local infrastructure. Roads designed for residential traffic are now overcrowded by commercial activities. Parking shortages, unregulated waste disposal, and noise pollution have become common concerns. Drainage systems designed for low density residential use struggle during heavy rainfall. While economic activity has expanded, urban management systems have not fully adapted.

From a policy perspective, the challenge is not to limit economic growth but to make it sustainable. Zoning regulations under the Lahore Development Authority are intended to manage land use, yet gaps in enforcement allow informal commercial exchanges to continue. Without integrated planning, economic expansion undermines environmental quality and resident well being.

Muslim Town represents a golden opportunity for the Punjab government to prove that urban planning can be both modern and inclusive. If we truly want to achieve the targets of SDG 8, we must stop planning cities for cars and buildings alone and start planning them for the people who make the city work. The street vendors of Muslim Town are not an obstacle to development; they are the heart of it.

Formalisation should be approached as a supportive rather than punitive measure. Simplified business registration procedures, digital licensing platforms and access to microfinance can encourage small businesses to enter the formal economy. Formal registration will not only increase tax documentation but also allow workers to access social protection schemes and financial services. Linking business licensing with environmental compliance, such as proper waste disposal and energy efficiency standards, can further align economic growth with sustainability goals.

Stakeholder engagement is equally important. Residents, vendors, and local authorities should collaborate to address common challenges such as traffic management and waste control. Participatory governance strengthens accountability and ensures that policies reflect realities on the ground.

Muslim Town reflects a broader urban trend across Pakistan. Cities are expanding not only geographically but also economically. Informal institutions drive much of this growth. Yet without policy coherence, such growth can deepen inequalities and environmental tensions. Good work requires safe working conditions, fair wages and regulatory inclusion. Sustainable development requires that economic growth not compromise environmental sustainability.

Coordinated action is needed to achieve Sustainable Development Goal 8 at the local level. Urban planning authorities, labour departments and municipal bodies must work together to integrate informal workers into formal frameworks to safeguard collective well-being. With thoughtful reforms, neighbourhoods like Muslim Town can serve as models of inclusive and resilient urban development.

Economic growth is visible in the busy streets of Muslim Town. The task now is to ensure that this growth is orderly, equitable, and environmentally responsible. Only then can urban prosperity truly reflect the principle of decent work for all.

To fix this, our provincial and local policies need a reality check. We need to stop viewing Muslim Town through a lens of perfect, empty streets and start seeing it as a living marketplace. This requires a shift from eviction to integration. For instance the Urban Unit and the LDA should identify specific zones within Muslim Town where vendors can be legally registered. A simple, low-cost digital permit would give these workers a legal identity. Once they are “on the map,” they can be linked to the Punjab Social Security Institution (PESSI), ensuring that a roadside laborer has the same basic right to a doctor as a corporate employee.

Muslim Town represents a golden opportunity for the Punjab government to prove that urban planning can be both modern and inclusive. If we truly want to achieve the targets of SDG 8, we must stop planning cities for cars and buildings alone and start planning them for the people who make the city work. The street vendors of Muslim Town are not an obstacle to development; they are the heart of it.