Pakistan has 7.2m economic units: economic census

By Mehtab Haider
|
August 22, 2025

Planning Minister Ahsan Iqbal at the Oxford Union debate. — Online/File

ISLAMABAD: Pakistan has a total of over 7.2 million economic units, with Punjab holding the largest share across all sectors. However, Sindh leads the way in the services sector. This was revealed in the first-ever Economic Census 2023, officially launched by Minister for Planning Ahsan Iqbal at the P Block Auditorium on Thursday.

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The minister said that 40 million buildings across the country were geo-tagged, of which 7.2 million were identified as economic establishments. They include retail shops, service outlets, factories, as well as educational and healthcare institutions. Of the 7.2 million economic units, 2.7 million are retail businesses, 188,000 are wholesale enterprises, 825,000 are service outlets, 23,000 are factories, and 643,000 are production units. Comparing these figures with only 250,000 companies registered with the SECP, Ahsan Iqbal noted that the census highlights vast opportunities for business formalisation, tax net expansion, and investment.

Pakistan has a total of 7,142,941 establishments. The services sector holds the largest share (57.86pc), followed by production (24.80pc), social (14.15pc), and others (3.09pc). In the social sector, mosques account for the highest number of establishments (600,403), followed by cattle farming in the production sector with 1,110,771 establishments, and retail shops in the services sector with 2,779,899 establishments.

Punjab leads in the total number of establishments and across all sectors. However, in the services sector, Sindh has a larger share (64.31pc) compared to the other sectors. Khyber Pakhtunkhwa has the highest share of social sector establishments (19.08pc), while Balochistan records the largest proportion of establishments under the “Others” category (4.82pc). Islamabad, despite having fewer establishments overall, has the highest concentration in the services sector (70.42pc). Overall, the services sector dominates across all provinces, with retail trade emerging as the single largest unit type in the country.

In the social sector, Punjab has the highest number of institutions in all categories, while Balochistan and the Islamabad Capital Territory (ICT) have the lowest. There are a total of 242,616 schools, mostly government-run, and 11,568 colleges, with a slightly higher share in the private sector. The country has 214 universities, 36,331 madrassas, and 119,789 hospitals, with private facilities making up the majority. Punjab leads in both public and private institutions.

The total employment of the 7 million establishments was recorded at 25.34 million. Punjab has 4.36 million establishments employing 13.64 million people, followed by Sindh with 1.38 million establishments employing 5.713 million. Khyber Pakhtunkhwa has 1 million establishments employing 1 million people, Balochistan has 303,000 establishments with a workforce of 1.38 million, and ICT has 86,000 establishments employing 621,000.

Punjab and the Karachi Division have the highest concentration of both establishments and workforce. In contrast, most districts in Balochistan and Khyber Pakhtunkhwa have fewer establishments and smaller workforces, reflecting relatively lower levels of economic development.

Of the total workforce of 25.34 million, the largest proportion is engaged in the services sector (44pc or 11.29 million). This is followed by the social sector (30pc or 7.58 million), the production sector (22pc or 5.29 million) and the “Others” category (5pc or 1.17 million).

Punjab has the largest workforce, with 13.64 million workers, leading in both production and services sectors. Khyber Pakhtunkhwa (3.98 million) and Balochistan (1.38 million) have relatively higher proportions of workers in the social sector, while Sindh (5.71 million) shows strong employment in commercial activities, particularly retail and wholesale trade. ICT, although having the smallest workforce (621,514), has a significant proportion employed in government and administrative services. This pattern highlights clear regional differences in employment structures across the country.

Most of the establishments in Pakistan fall into the category of fewer than 10 employees, with Punjab having the largest number 4.2 million. ICT has the smallest number in this category, with 77,284 establishments. Overall, 7,100,504 establishments in Pakistan have between 1 to 50 employees. Medium-sized establishments (51-250 employees) number 35,351, while large establishments (over 250 employees) are the least common, totalling only 7,086.

At the provincial level, Punjab leads in all employment size categories, with 4,344,337 small establishments, 16,728 medium establishments, and 3,228 large establishments -- reinforcing its status as the country’s main economic hub. Sindh ranks second, with 1,375,704 small, 7,773 medium, and 1,693 large establishments. ICT records the smallest numbers overall, with 84,760 small, 1,140 medium, and 254 large establishments.

Of the 5.6 million household-based economic activities, more than half (51.35pc) are involved in animal farming, making it the most common activity. Around 41pc of households are engaged in various unspecified or miscellaneous activities. Approximately 3.85pc are involved in tailoring, with other notable activities including embroidery (1.36pc ), poultry farming (1.32pc ), and tuition centres (0.56pc). Smaller proportions are engaged in food preparation, beauty parlours, and online services, each contributing less than 1pc.

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