Hotels and Restaurants Now Have More Employees Than Govt Offices in Pakistan

As per the latest Economic Census conducted by the Pakistan Bureau of Statistics, as many as 991,371 workers are associated with different categories and sized hotels and restaurants located in different parts of the country, making food services one of the single largest organized sectors of employment in the country. As such, hotels and restaurants in Pakistan now employ more workers than government offices (823,395), hospitals (768,002), and banks (271,470). The number of hotels and restaurants is increasing in the food-loving country-Pakistan, surging a surprising number of 256,926 by the end of 2023 and employing nearly 1 million workforce. According to the survey, Punjab has the highest number of hotels and restaurants of 152,984, with a workforce of 510,343. It is followed by Sindh with 55,632, employing 275,363 workers. KPK has 31,387 hotels and restaurants with 110,929 workers. Balochistan has 11,555 hotels and restaurants, employing 54,461 workers. Islamabad has 5,368 food places with 40,275 employees. It has been observed that a significant number of global brands and local food chains and their franchises have been established in the past few years in Pakistan. These eateries are not only a source of employment in urban areas but a very lucrative sector for investment and entrepreneurship, particularly for local investors and entrepreneurs. This sector offers opportunities to youth and low-entry-barrier jobs in urban areas and tourist spots. However, a significant part of this hotel and restaurant segment is unregulated and untaxed. There is a need for provincial food and tax authorities to introduce strict compliance in these restaurants to pay taxes and install digital payment solutions for customers and vendors. The concerned authorities should also vouch for workforce capacity building and employment rights in this sector. The workers should be provided with skills and training on hygienic cooking practices and friendly customer service. Workers at restaurants, hotels, and cafes should not be underpaid and overworked. Restaurants and hotels that comply with the above-mentioned fundamentals should be given tax relief by the authority.