Pakistan’s first economic census reveals structural realities
Pakistan’s first comprehensive economic census has laid bare the country’s institutional and structural fabric, challenging assumptions about the nature of its economy.
The report highlights a dominance of residential infrastructure, Punjab’s overwhelming lead in establishments, and the central role of household-based activities such as animal farming and tailoring. With education, healthcare, and religious institutions heavily shaping the national landscape, the census delivers unprecedented insight into how Pakistan’s economy functions at both the household and structural levels.
Pakistan’s maiden economic census has cast fresh illumination on the nation’s occupational landscape, dismantling long-held assumptions. Contrary to the prevalent belief that industry is the principal fountain of employment, the survey unveils that the service sphere alone harnesses 45 percent of the workforce. In stark contrast, Pakistan harbors over 600,000 mosques yet only 23,000 factories — a juxtaposition that underscores the country’s structural paradoxes.
The census bridges an informational void that had lingered since 1947. It represents the third analytical cornerstone after the demographic and agrarian enumerations, offering a panoramic portrait of the economic edifice. The findings reveal that of the 40 million permanent establishments across Pakistan, 7.2 million serve as employment structures, collectively hosting 25.4 million workers in 2023. Punjab and Karachi division emerged as epicenters of both enterprise density and manpower. Alongside mosques and religious seminaries — which surpass 36,000 and cluster heavily in Punjab — the landscape bears merely 643,000 small production houses in addition to the scant 23,000 factories.
Among the 25.4 million engaged, 11.3 million find their livelihood within the service sector, dwarfing the production industry, which claims a modest 22 percent, and trailing the social sector’s 30 percent, amounting to 7.6 million individuals. Punjab alone marshals 13.6 million laborers, towering above Sindh’s 5.7 million, Khyber-Pakhtunkhwa’s 4 million, and Balochistan’s sparse 1.4 million workforce.
The report discloses that Pakistan’s economy breathes largely through small-scale endeavors. Roughly 7.1 million outfits employ between one and fifty individuals. Enterprises boasting workforces of 51 to 250 scarcely exceed 35,000, while true industrial leviathans — units hosting more than 250 employees — barely touch 7,000 in number.
Disaggregated by classification, 2.7 million retail shops dominate the commercial tapestry, trailed by 188,000 wholesale vendors, 256,000 hotels, and 119,000 hospitals. Educational outposts encompass 242,000 schools, 11,568 colleges, and 214 universities, while spiritual structures remain unmatched with 604,000 mosques. The financial scaffolding comprises 19,645 banks, complemented by 29,836 public offices and 10,452 semi-government departments.
Sectoral parsing demonstrates that of the 7.2 million geo-tagged entities, over 3.2 million gravitate towards wholesale and retail trade, inclusive of vehicle and motorcycle repair. Manufacturing accounts for 696,000 establishments, while educational institutions reach 326,000. Services command the lion’s share at 58 percent, production secures 25 percent, social endeavors hold 14 percent, and a negligible 3 percent languish in the undefined “other” category.
This census, thus, sketches an intricate tableau: a country where mosques overwhelmingly outnumber factories, where livelihoods are tethered not to the clang of machinery but to the hum of services, and where small enterprises are the true backbone of an economy still in search of its balance.
The economic census reveals a vast network of social, educational, and health institutions alongside household-level economic activities that shape the country’s livelihood patterns. The report documents 242,616 schools, primarily government-operated, alongside 11,568 colleges, where the private sector holds a modest edge. In higher education, Pakistan hosts 214 universities, while its religious sphere is marked by 36,331 madrassas. Healthcare infrastructure comprises 119,789 hospitals, where private facilities outweigh public provision. Across these domains, Punjab emerges as the clear leader, dominating in both public and private establishments.
At the household level, the census underscores that 5.6 million households engage in economic activity. Among them, animal farming reigns supreme, accounting for 51.4% of household involvement. Roughly 41% pursue miscellaneous or unspecified activities. Tailoring provides sustenance for 3.9% of households, embroidery supports 1.4%, and poultry farming covers 1.3%. Smaller segments participate in home-based food preparation, beauty salons, and digital services, each representing less than one percent of households — modest yet significant in their contribution to localized economies.
Geographically, Punjab contains 58% of all establishments, underlining its dominance in the national landscape. Sindh follows with 20%, Khyber-Pakhtunkhwa (KP) with 15%, while Balochistan and Islamabad trail with 6% and 1% respectively. The figures highlight Punjab’s dense economic and structural presence, while Balochistan and Islamabad remain thinly developed by comparison.
When examined structurally, residential buildings constitute 79.4% of Pakistan’s total constructions, revealing a housing-centric infrastructure. KP leads this segment, with 81.6% of its buildings designated for residential use. Mixed-use and purely economic structures make up a far smaller portion, underscoring the limited emphasis on non-residential construction. Out of 114,148 multi-story structures, nearly two-thirds (64.4%) are purely residential, 29% combine residential with economic functions, while a slim 6.7% serve exclusively as economic units. Sindh carries the largest share of Pakistan’s multi-story residential buildings.
The census is intended to deliver a comprehensive portrait of the economy — documenting the scale, character, ownership, and employment patterns of establishments. While neighboring nations have pursued economic censuses regularly since the late 1970s, Pakistan’s efforts faltered. An attempt in 2003 collapsed after activity-based queries were entangled within the population census framework. By contrast, India has already completed seven economic censuses, while Bangladesh has managed three since its independence in 1971.
This latest exercise not only closes a long-standing gap but also lays bare the reality of Pakistan’s economy — heavily household-driven, predominantly residential, and disproportionately concentrated in Punjab. It highlights both the country’s untapped opportunities and its structural imbalances, offering policymakers the data needed to finally anchor economic planning in evidence rather than assumption.
The findings present a portrait of an economy rooted in small-scale, household-driven endeavors, with infrastructure tilted towards housing rather than commerce. Punjab’s dominance underscores regional imbalances, while the prevalence of informal and home-based occupations reflects untapped economic potential. By filling a decades-long void in data, the census equips policymakers with the evidence needed to steer planning and reforms — a vital step if Pakistan is to rebalance its economy and align with the systematic approaches long practiced by its neighbors.