Industry — Islamabad Capital Territory

Islamabad is primarily a services, information-technology, and administration economy, with a modest manufacturing base in designated industrial sectors, especially I-9 and I-10.

The Economic Census 2023 records 86,154 economic establishments in ICT, employing 621,514 people. Manufacturing is about 11% of establishments. Services account for roughly 70% of establishments in some reports. ICT is about 1% of national economic establishments and has the highest services concentration among regions.

Sector overview (Economic Census 2023)

SectorEstablishmentsWorkforce
Wholesale and retail trade; repair of motor vehicles37,922149,868
Manufacturing9,78740,389
Other service activities8,84352,638
Accommodation and food service6,09947,852
Agriculture, forestry and fishing4,70138,007
Real estate4,38524,583
Education4,183114,155
Human health and social work2,15025,266
Information and communication1,44227,806
Professional, scientific and technical1,2498,018
Construction4684,564
All establishments86,154621,514
86,154

Economic establishments

621,514

People working in those establishments

Establishments in the largest sectors

Key industries and products

SectorMajor activitiesLocation
PharmaceuticalsAbout 141 companies in formulation, packaging, and medical devicesKahuta Triangle, I-9, I-10, and industrial areas
Steel and metalSteel melting, re-rolling, pipes, bars, and structural steelI-9 and I-10
Flour, oil and gheeFlour mills and oil and ghee millsI-9 and industrial sectors
Marble and stoneCutting and polishingIndustrial areas
Engineering and light manufacturingMetalworking, engineering goods, pipes, and plastic and rubber productsI-9, I-10, and I-11
IT, software and technologySoftware houses, BPO, data centres, fintech, and researchSoftware Technology Parks, NASTP, Silicon Village, and related zones
OtherSoap and detergents, bakery and food items, garments, and small-scale unitsScattered and industrial zones

Sector I-9 is repeatedly cited as a major industrial hub, with about 250 industrial units in steel, flour, oil and ghee, marble, metalworking, and engineering.

Industrial infrastructure

  • Existing industrial areas: Primarily Sectors I-9 and I-10, and parts of I-11, with additional activity in the Kahuta Triangle and Koral.
  • Special Technology Zones: Silicon Village at Capital Smart City (about 498 acres), NASTP Alpha, Islamabad Technopolis and NUST-linked parks, New State Life Tower, Tech 7, and others focused on IT, AI, IoT, biotech, data centres, and high-tech manufacturing.
  • Planned: The ICT Model Industrial Zone / Islamabad Model Special Economic Zone near T-Chowk / Rawat is CPEC-linked, with reports citing about $2.5 billion in potential investment. The Islamabad Chamber of Commerce and Industry has advocated a new industrial estate of up to about 8,000 acres. CDA master-plan references include further industrial development, including I-17 concepts.

Economic impact and growth opportunities

  • Strengths: Pharmaceuticals, IT and software, proximity to federal institutions, and growing special economic and technology zones.
  • Constraints: Limited land for heavy industry, environmental and planning restrictions in the capital, and competition from Rawalpindi and Punjab industrial clusters.
  • Opportunities: Expansion of the ICT Model Industrial Zone, technology zones for AI, data centres, electric-vehicle manufacturing and biotech, value addition in pharmaceuticals and light engineering, China-Pakistan industrial cooperation, and formalisation of manufacturing SMEs.

The 2023 Census recorded unemployment at 7.1%, and 40.25% of people aged 15–24 were neither employed nor in education. The key-indicator list records unemployment at 9.5%.

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