Gilgit-Baltistan economy under stress due to declining tourists

The local economy of Pakistan’s Gilgit-Baltistan received a big jolt as the number of foreign tourists plummeted by about 90 percent in just one year. The region hosts five of the 14 tallest peaks across the Himalayas and attracts over 2,000 climbers annually. However, it saw just 270 climbers in 2025, thus registering a 90 percent decline in visits by international mountaineers. This has severely impacted the local people whose livelihoods are significantly dependent on tourism.

Loom businessman Haider Abbas was found struggling to pay shop rent and salaries after investing billions of rupees, while a tea seller on the Karakoram failed to get a single customer in a whole day. The growing perception of security risks, deteriorating infrastructure, bureaucratic and legal obstacles, and a sharp increase in permit charges and expenses, besides climate disasters, have become major reasons for foreign tourists skipping the mountainous region of Pakistan.

A sharp increase in permit fees has also discouraged international tourists from visiting Gilgit-Baltistan for winter activities. Pakistan Association of Tour Operators (PATO) member Liver Khan slammed the government for its anti-tourism policies, which included a surge in permit fees for mountaineering and trekking, as well as difficulties in obtaining visas. Khan said the sharp reduction in visits has affected the source of income for 90 percent of the local population, including labourers, transporters, hotel and shop owners, travel agents, tour operators and porters in remote areas.

Pakistan has lost foreign exchange due to the big drop in mountaineering expeditions in Gilgit-Baltistan, which locals said occurred due to an exorbitant hike in permit fees. A single expedition to the K-2 peak brings about USD 60,000 to Pakistan, which ends up supporting the hotel, aviation and tour sectors, as well as locals such as transporters, porters and other service providers. “However, the recent increase in royalty and permit fees has made it hard for tour operators to sell mountain expeditions and treks to foreign and domestic clients,” said PATO representatives.

K2, Nanga Parbat, Broad Peak, Gasherbrum I and Gasherbrum II in Pakistan are among the fourteen 8,000-metre peaks in the world. Besides, the rugged beauty and unique cultural landscape of Gilgit-Baltistan fetch millions of international tourists every year. However, the situation has become gloomy amid the decline in tourism. “This is the first dry season after 2020, when there was a total ban on climbing due to COVID-19. I haven’t joined even a single expedition this year,” said porter Ashraf Ali Raza Sadpara. “Usually, this would be our busiest time. We had to turn down expeditions because of too many offers. But this season has turned into a nightmare.”

Locals expressed concern over the government’s decision to increase the K2 permit fee to USD 3,500 from USD 1,725 and for other 8,000-metre peaks to USD 2,500 from USD 1,000. Expedition operator Anwar Syed said the exponential increase in fees can be difficult for climbers to cope with since they save money for years to fulfill their dreams. “When they learn that their costs have doubled or tripled, many cancel their plans. Regional wars have only made the cancellations worse,” Anwar said.

Climate change-fuelled natural calamities and global conflicts have also affected tourism in Gilgit-Baltistan. A few adventure sports enthusiasts have lost their lives in Gilgit-Baltistan in recent years. The border conflict with neighbouring India has played a major role in driving international as well as local tourists away. Hotels in the famous Neelam Valley looked deserted as the clouds of war gathered overhead. “Most tourists have left and returned to their cities because there is a risk of war,” said local hotel owner Rafaqat Hussain.

Poor civic and rescue infrastructure has also added to the problem, as visitors avoid the difficulties and uncertainties caused by bad roads, limited accommodation and irregular utilities, especially as climate-linked hazards have become quite common in the region. Restaurant owner Asif Gohar said, “Currently, the issues we are facing are primarily related to the roads and poor facilities in hotels. The tourists coming here have to face many difficulties due to poor infrastructure, including road conditions. Many tourists who visit once say that it will be difficult for them to return because of the road conditions.”

Security risks owing to the high probability of terror attacks and kidnapping have discouraged many foreign tourists from travelling to Pakistan. Many countries, including the UK and the US, have issued advisories against travelling to the country. Australia has also advised its citizens to “reconsider” plans to travel to Pakistan. “Terrorist and separatist groups hostile to foreign interests operate in Pakistan. The threat of terrorist attacks and kidnapping remains very high. Foreigners may be targeted,” read its latest advisory.