Small and medium-sized enterprises (SMEs) form the backbone of most APO member economies and account for around 70% of employment, yet they face persistent challenges arising from rapid technological change, labor shortages, skill gaps, and limited resources. In this context, human capital management has become increasingly critical, as SMEs must compete through human capability rather than capital intensity.

In response, the National Productivity Organization, Pakistan, held the Workshop on Human Capital Management in SMEs in Karachi, Pakistan, from 27 to 30 January 2026. The workshop aimed to strengthen participants’ understanding of human capital management as a strategic approach, address related emerging challenges in the digital and AI era, and equip participants with practical frameworks and tools for aligning workforce strategies with SME business goals.

Twenty-three participants from eight member economies completed the workshop under the guidance of four resource persons, one from Malaysia, one from Sri Lanka, and two from Pakistan. Through interactive lectures, group work, and facilitated discussions, participants developed practical, SME-ready action plans for human capital management. A site visit to Artistic Milliners, one of the key denim producers and exporters in Pakistan, enabled participants to observe advanced human capital management and productivity practices in a real industrial setting and exchange insights with the company’s HR team, providing them with an enhanced understanding of how human capital management concepts can be applied to improve productivity.