Abstract:
In developing nations, the informal sector is a significant component of metropolitan
economies. Almost half of Pakistan's GDP is generated by the informal economy. This
research investigated nine distinct sectors within the informal sector of Rawalpindi's central
business district, including wholesale and retail trade, hotels and restaurants. A survey of
404 respondents from 16 CBD marketplaces enables a comprehensive examination of who
works in the informal and formal economic sectors, how much they make, their goals and
views of their job, and their degree of similarity to the rest of the working population.
Furthermore, the statistics provided illustrate the pro-cyclical connections between this
sector and the formal economy. This research demonstrates how intimately connected the
informal sector is to the formal economy. Moreover, the connections between those working
in informal economic sector and their contribution were explored and how they might be
strengthened to improve urban institutional resilience. The Multinomial Logistic Regression
(MLM) technique is used to develop the model that identifies the primary variables that need
government attention to mobilize the informal sector and generate effective institutional
governance, and policies.
