Small Businesses Dominate Pakistan’s Economy
ISLAMABAD: According to the Pakistan Bureau of Statistics (PBS) Economic Census 2023, 95% of all businesses in Pakistan employ fewer than 10 workers. This shows the central role micro and small enterprises play in Pakistan’s economic growth.
Key Sectors Leading Business Activity
The census highlights that:
- Wholesale and retail trade leads with 2.9 million establishments.
- Manufacturing follows with 696,558 units.
- Education accounts for 326,868 institutions.
- Health and social work represents 123,973 establishments.
These figures reflect Pakistan’s diverse economic activities.
Informal Sector and Household Enterprises
The informal economy remains a major driver of employment. Nearly 10.9 million household-based units contribute to income and livelihood.
- Animal farming leads with 5.6 million units.
- Other activities include tailoring, embroidery, carpet weaving, small-scale poultry, and tuition centres.
These small businesses promote women’s empowerment and rural employment.
Digital Census and Cost Savings
The 2023 Economic Census was integrated with the 7th Population and Housing Census, Pakistan’s first-ever digital census. This integration saved Rs7 billion, reduced duplication, and created a consolidated socio-economic database for future planning.
Strategic Role of the Statistical Business Register
PBS Chief Statistician, Dr. Naeem uz Zafar, stated that the new Statistical Business Register (SBR) will support:
- SME development
- Labour market analysis
- Enterprise surveys
- Digital economy growth
He urged policymakers to focus on the informal sector along with large-scale industries to boost inclusive economic transformation.
Policy Impact and Future Development
Planning Minister Ahsan Iqbal praised the census for providing a strong base for inclusive growth and poverty reduction strategies.
Sarwar Gondal, focal person for the digital census, termed the project groundbreaking. Over 121,000 trained enumerators used IT-based solutions to build a comprehensive economic database that will aid Pakistan’s future development.
