Why the Pakistan steel mills are in the formal sector?

Pakistan Steel Mills (PSM) is considered part of the formal sector because it operates under government ownership and regulation, adhering to labor laws, taxation, and corporate governance standards. As a state-owned enterprise, it is registered with the relevant authorities, has a structured workforce, and contributes to the national economy through employment and production. This formal status also means it is subject to oversight by various governmental bodies, ensuring compliance with industry regulations and standards.