Mobilizing Informal Economic Sector to Uphold Urban Institutional Resilience: A Case Study of Rawalpindi, Punjab

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.