Pakistan can unlock billions in tourism exports, but structural gaps persist: report

Pakistan can significantly boost tourism exports, employment and economic growth, but structural weaknesses and policy bottlenecks continue to limit the sector's competitiveness, a new study by the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce & Industry found.

The report draws on data from 213 stakeholders, including tourists, tour operators and government officials.

How much does tourism contribute to Pakistan's GDP?

Tourism currently contributes around 5.9% to Pakistan's gross domestic product and supports nearly 4.7 million jobs nationwide. The sector generated an estimated $1.15 billion in tourism export earnings in 2024, accounting for 2.9% of Pakistan's total exports and almost 14% of services exports. PAB-FPCCI said the country holds substantial untapped tourism assets that remain underdeveloped.

The report, titled "Mapping Pakistan's Tourism Potential: A Comprehensive Export Analysis," assesses the country's tourism landscape and outlines reforms needed to position Pakistan as a globally competitive destination. It points to diverse landscapes, religious sites, cultural heritage and adventure tourism opportunities that could draw more international visitors.

Which type of tourism is most popular in Pakistan?

The study mapped tourism demand across eight major segments and found adventure tourism to be the largest category, accounting for 45% of total demand. Religious tourism followed at 22%, while historical tourism made up 11%. Business and educational tourism each accounted for 6%, sports tourism 5%, dark tourism 3% and cruise tourism 2%.

The findings suggest Pakistan's mountainous terrain and natural landscapes remain its strongest draw for both domestic and international travelers.

Why does Pakistan spend more on tourism than it earns?

The report highlighted a significant imbalance between inbound and outbound tourism spending. Foreign visitors contributed approximately $1.15 billion to Pakistan's economy in 2024, while Pakistani travelers spent an estimated $2.4 billion overseas during the same period. The report said closing this spending gap presents a major opportunity to strengthen Pakistan's foreign exchange earnings.

International tourists spend an average of $12.5 per day, with a typical four-to-five-day trip contributing between $1,500 and $1,750 to the local economy. Domestic tourists spend around $8.5 daily by comparison, generating roughly $500 per trip.

What barriers are limiting Pakistan's tourism growth?

Despite the sector's potential, the study identified several barriers limiting tourism growth. On the demand side, key constraints include poor road infrastructure, inadequate public amenities, weak digital connectivity and ongoing safety concerns. On the supply side, the report pointed to unplanned construction, complex visa procedures, weak international marketing, inconsistent policy implementation and excessive regulatory requirements.

Among the most significant hurdles was the requirement for No-Objection Certificates for foreign tourists seeking access to certain destinations, a process the report said discourages inbound travel.

What reforms could boost Pakistan's tourism exports?

To improve Pakistan's ranking on the global Travel and Tourism Development Index and expand tourism exports, PAB-FPCCI recommended a broad package of regulatory and infrastructure reforms. The report called for simplified visa processes, eased NOC requirements for foreign visitors and digital governance systems for surveillance and complaint management. It also urged investment in digital payment systems at tourist destinations, climate-resilient transport infrastructure and better roadside facilities.

The study also stressed the need for stronger quality controls, including improved food standards, hygiene protocols and waste management systems across tourism zones.

Could tourism become a major export earner for Pakistan?

Analysts said the report reflects growing recognition of tourism as a strategic export sector capable of generating foreign exchange without requiring large-scale imports. An analyst familiar with the sector said the study underscores an important opportunity for Pakistan to diversify beyond traditional goods exports. They said tourism could emerge as a major source of foreign exchange while supporting employment across hospitality, transport and retail if infrastructure improves and policy barriers are removed.

Analysts added that attracting higher-spending international visitors could ease pressure on Pakistan's external account and contribute to broader economic stability as the country searches for more sustainable export growth channels.