This study attempts to provide a broad understanding of the emerging SE sector in Pakistan, alongside the policy and regulatory environment. It has been informed by interviews, focus group discussions and an extensive literature review of international and national research studies. It reviews the context in which SEs have evolved in Pakistan, their ways of addressing different economic, social and environmental needs, the key barriers and enablers to SE development, and explores opportunities on how various stakeholders might effectively engage and develop the regulatory and policy framework for SEs in the local context. The paper concludes with key recommendations for policymakers in Pakistan and other regulators who find their context similar to the Pakistan story. These policy solutions include improved taxation schemes, public procurement, improving access to finance for SEs, and a clarification of the roles that different sectors like the academia, private sector, civil society, and social enterprises would play in the community.