ISLAMABAD – Pakistan’s economic engine is powered by its vast network of small and micro-enterprises, according to the newly released Economic Census 2023. The data reveals that businesses employing fewer than 10 people constitute 95% of all establishments nationwide, underscoring their immense contribution to the country’s economic landscape.
The census, conducted by the Pakistan Bureau of Statistics (PBS), mapped a total of 7 million economic establishments. The report found that the wholesale and retail trade sector is the largest with 2.9 million establishments, followed by manufacturing, education, and health services. These findings confirm the diverse and dynamic nature of economic activity across Pakistan.
A significant portion of this economic activity is home-based. The census identified 10.9 million household-based units, with animal farming being the most common activity, followed by other vital sources of income such as tailoring, carpet weaving, and small-scale poultry. This informal sector is a major driver of employment, income diversification, and social uplift, particularly for women and rural communities.
This landmark census was integrated with the 7th Population & Housing Census, a first-of-its-kind digital undertaking in Pakistan. This innovative approach saved approximately Rs. 7 billion and eliminated the duplication of efforts, providing a consolidated baseline for future national planning. Dr. Naeem uz Zafar, Chief Statistician at the PBS, noted that the data will be used to create Pakistan's first Statistical Business Register (SBR), an essential tool for targeted policy interventions, especially for small and medium-sized enterprises (SMEs).
Planning Minister Ahsan Iqbal praised the comprehensive data set, calling it a solid foundation for crafting policies to promote inclusive growth and poverty reduction. Sarwar Gondal, the focal person for the Digital Census, hailed the successful integration as a groundbreaking achievement. The PBS team, with the help of 121,000 trained enumerators, navigated a challenging timeline to produce this detailed economic database, which promises to be a game-changer for future policy and development efforts.
