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How Tourism Industry Stimulates Economic Growth in Pakistan

Tourism Industry Stimulates Economic Growth in Pakistan


This decade has proven to be a boom for the Tourism industry in Pakistan, despite being prone to the recent Pandemic. As a result, it has acted as a facilitator to stimulate economic growth in Pakistan. After 9/11 the image of Pakistan was shaken and was termed as a terrorist country and the war on terror also acted as a contributor to shutter the economic stability of the country. However, after 2014 there seems an actual improvement in terms of peace, stability, and growth in different sectors including the tourism industry in Pakistan. People from all around the world visit Pakistan for enjoying its scenic beauty, breathe taking landscapes, its diversified culture, historical places, beautiful mountains & plains, and many more things. As a result, the economy of the country is showing a positive comeback towards stability, growth & prosperity.

Tourism Industry as a stimulator for economic growth

The tourism industry in Pakistan is the backbone and the future for the economic growth of the country in the recent decade. With the advancement in modern technology and the influence of social media, tourism has developed very fast in past few years. Within it, many other sectors like the hotel & hospitality sector, transport sector and also the agriculture sector has shown improvement & got boosted. In addition, the revenue generated from the tourism industry and other related sectors is contributing to escalating the economic reservoir of the country, while taking it towards stability and progress. Thus, it seems very clear that the tourism industry plays the role of a critical stimulus for economic modernization in Pakistan.

Tourism development as a gateway to economic prosperity

The tourism industry in Pakistan is playing the role of a booster in the national economy as it is the new source of development, with which other sectors are also getting boosted. With the growing national & international tourism, different areas of Pakistan which are important in terms of touristic point of view are getting popularity on national and international media that is a direct impetus of the tourism development, which in turn is facilitating the economic growth in the country. The increasing flow of tourism has brought positive economic outcomes for the country and is contributing to the GDP growth of the country. It has also brought new job prospects for people who are affiliated with this sector; as a result, it has contributed to the economic wealth of the populace.

Economic growth is directly proportional to social development

Economic development and growth have a direct relationship with other sectors including health, education, medical care, water supply & sanitation, housing condition, and more specifically the poverty alleviation. Economic prosperity means a more improved quality of life & standard of living. This means the development in the social sector will contribute to the advancement in health & hygiene, better quality of education, better housing conditions, poverty alleviation, and improving the overall social fabric of the country. Hence, tourism development triggers the economic stimulus, which in turn prompts social development.

Economic stimulus package for tourism development

The tourism sector is getting boosted in Pakistan but for more advanced facilities and for the improvement of the infrastructure, an economic stimulus package for the tourism development is essential. The reason is, without investing in this sector there is a little chance of improvement in the national economy. Moreover, improving the facilities of the hotel industry, making an investment in the infrastructure like roads, etc. can increase the probability of more flow of international tourists, because to cater to the bulk of national and international tourists, a huge investment is needed. Therefore, the government needs to invest in this sector to gain returns in the form of economic growth.


The tourism industry is acting as a facilitator for the economic perpetuation of the country. This is an emerging sector that is predicted as the spine for the economic progress in Pakistan. Pakistan is blessed with immense beauty & enriched cultures and has the potential to attract visitors from all around the world to experience the natural atmosphere of the country. This will help the country to generate its revenue from this sector and utilize it on the social spending & the overall economic growth of the country. For this, the utmost thing is to allocate some infrastructural budgets for this sector, so that the facilities can be improved to get the tourism sector boosted. 

Written by Nahida Karim

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