Daily Insights

Share of Pakistani Cities in GDP Remains Low

By 23/11/2021 March 25th, 2022 0 Comments

Globally, cities contribute almost 80% to a country’s Gross Domestic Product (GDP). Properly urbanized areas indicate high per capita income and greater employment opportunities. However, in Pakistan, the share of cities in GDP is around 55%. A lack of investment in infrastructure is making Pakistani cities lag behind in economic and commercial growth.

The absence of urban planning has led to a poor transportation network, under-resourced health facilities, and weak educational facilities. Although urbanization can boost a country’s economy, if unplanned development continues to take place, cities can fast become centres of socioeconomic woes for all segments of society.

Cities in Pakistan are a chief source of employment opportunities for small and medium enterprises, which provide the vast majority of Pakistan’s non-agricultural jobs. Cities are also the hub for Pakistan’s prestigious educational institutions, which impart education, training skills, and research and development opportunities in marketable disciplines.
To harness the economic and social benefits of urbanization, policymakers must plan for efficient land use, match population densities with the required needs for transport, housing and infrastructure, and arrange the financing needed for such urban development projects.

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