Economy of Islamabad

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Downtown Islamabad

Islamabad is the capital of Pakistan and a net contributor to the Pakistani economy. Whilst having only 0.8% of the country's population, it contributes 1% to the country's GDP.[1] The Islamabad Stock Exchange, founded in 1989, is Pakistan's third largest stock exchange after Karachi Stock Exchange and Lahore Stock Exchange.[2] The exchange has 118 members with 104 corporate bodies and 18 individual members. The average daily turnover of the stock exchange is over 1 million shares.[3] As of 2012, Islamabad LTU (Large Tax Unit) was responsible for Rs 371 billion in tax revenue, which amounts to 20% of all the revenue collected by the Federal Board of Revenue (FBR) as of 2012.[4]

Islamabad has seen an expansion in information and communications technology with the addition three Software Technology Parks which house numerous national and foreign technological and IT companies. The tech parks are located in Evacuee Trust Complex, Awami Markaz and I-9 sector. Awami Markaz houses 36 IT companies while Evacuee Trust house 29 companies.[5] Call centers for foreign companies have been targeted as another significant area of growth, with the government making efforts to reduce taxes by as much as 10% in order to encourage foreign investments in the IT sector.

Most of Pakistan's state-owned companies like Pakistan International Airlines, PTV, PTCL, OGDCL, and Zarai Taraqiati Bank Ltd. are based in Islamabad. The city is home to many branches of Karachi-based companies, banks, and TV channels. Headquarters of all major telecommunication operators such as PTCL, Mobilink, Telenor, Ufone, China Mobile and are located in Islamabad.

Being an expensive city, the prices of most of fruits, vegetable and poultry items increased in Islamabad during the years 2015-2020


According to the World Bank's Doing Business Report of 2010, Islamabad was ranked as the best place to start a business in Pakistan.[6]


  1. ^ "Pakistan | Economics and extremism". Dawn.Com. 2010-01-05. Archived from the original on 2010-01-08. Retrieved 2010-06-02.
  2. ^ "Pakistan Stock Exchanges". Archived from the original on 2010-02-28. Retrieved 2011-05-28.
  3. ^ ISE-Official website. "About ISE". Archived from the original on 2011-06-17.
  4. ^ "Rs371bn revenue target: FBR hails LTU Islamabad's performance". 5 July 2012. Retrieved 9 July 2012.
  5. ^ Pakistan Software Export Board. "Islamabad". Archived from the original on 2010-05-05.
  6. ^ "Faisalabad best place to do business in Pakistan". The Express Tribune. June 30, 2010.