Karachi, October 18, 2025 — The State Bank of Pakistan (SBP) has emphasized that even modest improvements in tourism could significantly boost Pakistan’s economy, create millions of jobs, and empower women and youth—especially in rural regions.
In its latest study titled “Unlocking Pakistan’s Tourism Potential,” the SBP highlights that tourism is a global economic powerhouse, generating 10% of global GDP and supporting 357 million jobs worldwide. However, Pakistan captures only a fraction of this opportunity: in 2022, tourism contributed just 5.9% of GDP and created 4.2 million jobs.
Pakistan’s Untapped Tourism Potential
Pakistan ranked 101st out of 119 countries in the World Economic Forum’s (WEF) Travel & Tourism Development Index 2024, signaling vast untapped potential. From the majestic peaks of Gilgit-Baltistan and beaches of Balochistan to the ancient Gandhara and Indus Valley sites, Pakistan offers rich and diverse attractions.
Yet, the sector faces persistent challenges—poor infrastructure, inconsistent standards, limited promotion, regulatory hurdles, and negative security perceptions. The SBP report warns that without major reforms, Pakistan will continue missing out on billions in revenue and job creation opportunities.
Tourism’s Strong Economic Impact
Tourism has one of the highest economic multipliers globally. According to the SBP, every dollar spent on tourism generates $2.9 in total income, while each direct tourism job creates four more in supporting sectors such as agriculture, retail, construction, and manufacturing.
Investments in airports, roads, and railways not only improve connectivity but also stimulate broader economic development. Moreover, tourism’s social impact is profound — globally, women make up 54% of the tourism workforce, while responsible tourism helps fund environmental conservation and community development.
However, the sector also contributes 8% of global carbon emissions, underlining the urgent need for sustainable, low-impact tourism practices to balance economic growth with environmental preservation.
Government Efforts and Key Initiatives
The Pakistani government has begun taking steps to strengthen the tourism sector. Initiatives under the Special Investment Facilitation Council (SIFC) include simplifying investment rules, expanding e-visa access, and promoting public-private partnerships through Green Tourism Pakistan.
Improving digital connectivity, airports, and road infrastructure remains essential to attract international tourists and improve visitor experience.
Governance, Security, and Skills — The Key Gaps
Despite progress, fragmented governance continues to hinder growth. While the National Tourism Coordination Board has improved coordination, SBP urges greater integration between federal and provincial authorities. A unified tourism policy—defining clear roles, responsibilities, and performance indicators—can help ensure better governance, accountability, and consistent standards nationwide.
Security concerns also remain a challenge. The report recommends establishing tourist police units, safe travel corridors, and trained guides to improve visitor confidence. Enhancing crisis response and transparent communication can further reshape Pakistan’s international image.
Climate-Resilient and Skilled Tourism Future
Pakistan’s recent floods and landslides (2022–2025) have exposed the vulnerability of its infrastructure, especially in mountainous regions. The SBP calls for climate-resilient planning and disaster risk management in all new tourism projects.
In addition, Pakistan’s hospitality skills lag behind regional competitors. The SBP suggests setting up vocational training institutes to develop internationally aligned skills, improve service quality, and professionalize the tourism workforce.
Conclusion
Pakistan stands on the threshold of a tourism-driven economic revival. The SBP’s study makes it clear: by modernizing governance, investing in resilient infrastructure, and empowering the hospitality workforce, Pakistan can transform tourism into a key growth engine—creating millions of jobs, uplifting communities, and showcasing the nation’s cultural and natural treasures to the world.