Gallup Pakistan’s analysis of the Pakistan Economic Census 2024 has revealed a comprehensive picture of the country’s economic landscape, documenting nearly 7 million establishments across the nation. The findings highlight that the majority of businesses operate in the services sector and that micro and small-scale enterprises overwhelmingly dominate Pakistan’s economic structure.
According to the data, retail shops remain the largest category of establishments, with 2.7 million units spread nationwide. Production shops follow at 643,000, while the country is also home to 256,000 hotels and 242,000 schools. The census further recorded 119,000 hospitals and 600,000 mosques. Strikingly, the number of factories is just 23,000, underscoring the limited scale of formal manufacturing units within the economy.
The census sheds light on the workforce distribution across these establishments. Over 99 percent employ fewer than 50 workers, indicating a heavy reliance on small-scale enterprises. Only 7,086 establishments nationwide qualify as large-scale, employing 250 or more workers, which accounts for just 0.1 percent of the total. This structural imbalance highlights the absence of medium-sized businesses—the so-called “missing middle”—which often play a critical role in driving productivity, innovation, and formalization in more developed economies.
By sector, trade dominates with 3.22 million establishments, illustrating its central role in Pakistan’s economy. Agriculture comes next with 1.1 million establishments, followed by manufacturing at 696,000. The education sector accounts for 327,000 establishments, while health-related establishments stand at 124,000. The data reflects the significant weight carried by services and trade in the country’s economic framework compared to industrial and manufacturing units.
The structural message from the census is clear: Pakistan’s economy continues to rely heavily on micro and small-scale enterprises, while the underdevelopment of medium and large-scale businesses constrains overall productivity. This “missing middle” not only hinders efficiency but also restricts the process of formalization, limiting opportunities for sustainable growth and employment creation.
Experts argue that this pattern of economic activity emphasizes the need for policy interventions that encourage scaling up small businesses, enabling them to transition into medium-sized enterprises. Bridging this gap could unlock higher productivity, foster innovation, and improve access to formal financial systems. Strengthening linkages between trade, agriculture, and manufacturing sectors could also help rebalance the economy and reduce overreliance on informal setups.
The findings from Gallup Pakistan’s analysis provide a critical lens into the challenges and opportunities ahead. With nearly 7 million establishments operating nationwide, the focus must shift from simply growing the number of businesses to improving their quality, efficiency, and contribution to the formal economy.
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