Pakistan's tourism sector earned $1.15 billion from foreign tourists in 2024 while its citizens spent an estimated $2.4 billion abroad, resulting in a $1.25 billion deficit, according to a recent report by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). This stark imbalance highlights the failure of the sector to capitalize on the country's breathtaking landscapes and rich cultural heritage, which have long been touted as a potential tourism juggernaut.
Tourism's Contribution to Economy
Despite the deficit, tourism contributes nearly 5.9% to Pakistan's GDP and supports 4.7 million jobs. However, it accounts for just 2.9% of total exports, a figure that pales in comparison to regional competitors. Pakistan ranks 101st on the World Economic Forum's Travel and Tourism Development Index, far behind India (39th) and the UAE (18th).
Key Challenges Identified
The FPCCI report identifies several factors restricting tourism growth: complex visa regimes, fragmented governance, inadequate infrastructure, and weak international promotion. Pakistan's assets are undeniable, including the Karakoram range's peaks for mountaineers, the Kartarpur Corridor that attracted over 45,000 Sikh Indian pilgrims in 2025 despite border tensions, and unparalleled Indus Valley Civilisation and Buddhist heritage sites. But assets alone do not generate revenue.
Need for Reform
Experts suggest that Pakistan must treat tourism as an economic priority to counter the trend of tourism imports dwarfing exports. Reforms such as e-visas would make travel easier for modern tourists. They insist certification and standard-setting for foreign tourism-related businesses should become a federal subject to ensure consistency. Tourism was devolved under the 18th Amendment, and provinces created differing standards that have led to confusion for foreign tourists booking independently.
