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)
| Sector | Establishments | Workforce |
|---|---|---|
| Wholesale and retail trade; repair of motor vehicles | 37,922 | 149,868 |
| Manufacturing | 9,787 | 40,389 |
| Other service activities | 8,843 | 52,638 |
| Accommodation and food service | 6,099 | 47,852 |
| Agriculture, forestry and fishing | 4,701 | 38,007 |
| Real estate | 4,385 | 24,583 |
| Education | 4,183 | 114,155 |
| Human health and social work | 2,150 | 25,266 |
| Information and communication | 1,442 | 27,806 |
| Professional, scientific and technical | 1,249 | 8,018 |
| Construction | 468 | 4,564 |
| All establishments | 86,154 | 621,514 |
Economic establishments
People working in those establishments
Establishments in the largest sectors
Key industries and products
| Sector | Major activities | Location |
|---|---|---|
| Pharmaceuticals | About 141 companies in formulation, packaging, and medical devices | Kahuta Triangle, I-9, I-10, and industrial areas |
| Steel and metal | Steel melting, re-rolling, pipes, bars, and structural steel | I-9 and I-10 |
| Flour, oil and ghee | Flour mills and oil and ghee mills | I-9 and industrial sectors |
| Marble and stone | Cutting and polishing | Industrial areas |
| Engineering and light manufacturing | Metalworking, engineering goods, pipes, and plastic and rubber products | I-9, I-10, and I-11 |
| IT, software and technology | Software houses, BPO, data centres, fintech, and research | Software Technology Parks, NASTP, Silicon Village, and related zones |
| Other | Soap and detergents, bakery and food items, garments, and small-scale units | Scattered 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%.