KP govt gives legal framework to street economy
KP govt gives legal framework to street economy: Khyber Pakhtunkhwa has taken a major step toward protecting its street-based workforce with the introduction of the Ehsaas Rehri Ban Employment Protection Bill 2025. This move marks the first time the province has created a comprehensive legal framework for the street economy, a sector that contributes an estimated Rs 380 billion to the local economy.
The new bill reflects an effort to provide equal protection to every citizen and ensure that workers who depend on daily earnings can continue their livelihood without fear of harassment or exploitation.
A Landmark Initiation Toward Street Economy Reform
Under the leadership of Chief Minister Muhammad Sohail Afridi, Khyber Pakhtunkhwa has finalized the draft of the Ehsaas Rehri Ban Employment Protection Bill 2025. The initiative aligns with a broader vision of creating a fair and supportive system for low-income workers who rely on informal jobs such as street vending and rickshaw services.
This development stands out as the first of its kind in the province, addressing long-standing challenges faced by rickshaw drivers and street vendors.
First Province to Legally Protect Rickshaw Drivers
One of the major components of the bill is the formal recognition and legal protection of rickshaw drivers. More than 1.4 lakh rickshaw pullers across the province are expected to benefit from these protections. Once registered, drivers will be safeguarded from unlawful actions, exploitation, and sudden loss of livelihood.
By bringing their rights under provincial law, the government aims to give these workers a sense of security and respect in their daily work.
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Formalising a Rs 380 Billion Street Economy
The street economy, often overlooked due to its informal nature, plays a huge role in supporting thousands of families. Through this bill, Khyber Pakhtunkhwa has taken historic steps to recognise this workforce and bring regulation, structure, and safety into their routine operations.
Legalising and documenting this sector is expected to enhance transparency, reduce conflicts, and create better economic opportunities for small-scale earners.
Key Features of the Ehsaas Rehri Ban Employment Protection Bill 2025
Harassment and Bribery Declared Serious Offences
The bill defines harassment, intimidation, and bribery against registered rickshaw drivers and street vendors as punishable offences. This aims to eliminate long-standing issues faced by workers at the hands of various authorities.
No Action Without Official Notice
Registered rickshaw drivers cannot face any penalties, seizure of vehicles, or removal from their spot without prior written notice. This rule is designed to ensure fairness and prevent sudden loss of income.
Establishment of Safe Vending Zones
The bill introduces designated zones where vendors can operate without fear of eviction. These zones come with clear rights, safety rules, and full legal protection.
Access to Microfinance, Credit, and Insurance
Registered workers will have the opportunity to access:
- Microfinance services
- Easy credit facilities
- Affordable insurance
- Emergency financial support
This is expected to help them manage financial shocks and grow their small businesses.
Introduction of Street Vending Certificates
A street vending certificate will serve as official proof of recognition and protection by the provincial government. For rickshaw drivers, this certificate will act as a safeguard for their daily earnings and identity as lawful workers.
Representation in Tehsil Vending Committees
To ensure that decisions reflect the needs of street workers, the bill proposes mandatory representation of rickshaw drivers in every tehsil vending committee. This gives them a voice in planning, zoning, and policy-making directly related to their livelihoods.
Promoting Dignity and Self-Reliance
According to the philosophy guiding the bill, supporting the street economy is not just an economic step but also a way to strengthen the self-respect and dignity of hardworking citizens. By giving them legal protection and reducing uncertainty, the government aims to promote self-discipline, security, and long-term growth for thousands of families.
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Next Step: Cabinet Approval and Presentation in the House
The draft bill will be presented to the provincial cabinet for approval. Once cleared, it will be tabled in the provincial assembly for final legislation. If enacted, Khyber Pakhtunkhwa will become the first province in Pakistan to formally protect the rights of rickshaw drivers and street vendors under a structured law.
Background Note
A similar initiative, the Ehsaas Rehri Ban Program, was launched at the federal level during an earlier government term. The new provincial bill builds on that concept by introducing stronger and more localised protections.