Recently, during construction work along the Indus Highway, an archeological site was discovered that was part of the mature period of Indus Valley Civilization. Perhaps the words “stumbled upon” are more apt than the word “discovered” since it was noticed only because 4000 year old artifacts were scattered on huge dumps of earth. That the site is in bad condition because it has sustained damage is no surprise. Nor is it a surprise that this is not the first time it has happened. The even older Amir site belonging to the pre-Harappan stage of Indus Valley Civilization was “discovered” in a similar manner in 2005-06.
Despite the tremendous increase in tourism in recent years, Pakistan remains below regional averages. Pakistan’s direct contribution as a percentage of GDP was 2.7 in 2016 and growth was 5.1 percent, whereas South Asia’s was 3.2 percent and 6.6 percent respectively, as per the Travel & Tourism Economic Impact 2017 – Pakistan report by the World Travel & Tourism council. The bulk of the tourists that make up the figures in the graph are those that are visiting friends and family.
A draft report by USAID on tourism in KP postulates that an increase in one standard deviation in the share of tourism exports leads to about 0.5 percentage point in additional annual growth. Similarly, a 2010 study titled “Tourism, Economic Growth and Current Account Deficit in Pakistan: Evidence from Co-integration and Causal Analysis” puts forward the hypothesis that there is a causal relationship between number of tourists, CAD and GDP growth. Since the CAD deficit persists because Pakistan’s exports are resource-based and lack competitiveness in the international market, the study argues that by putting greater emphasis in the tourism sector, the problem can be redressed.
Having said all this, to cross the $1 billion mark in a sector that receives little attention from the government is impressive. Many of Pakistan’s traditional exports such as leather goods, surgical goods, and fruits and nuts, are less than the revenue generated by tourism. True, it is the expats that drive Pakistan’s remittances and tourism. Yet, the volume underscores the potential that lies if resources were allocated to develop Pakistan’s cultural and scenic beauty.
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