Earlier this week, this column highlighted the need to adopt a sectoral and country-wise approach to finding solutions for weak exports and FDI (See BR Research column "Forex troubles: Need a closer look," published December 28, 2016). In that context, one sector that the Board of Investment should put into FDI limelight is tourism. Here are four quick reasons why.

First, a vibrant tourism destination softens a country's image. And with the security situation finally improving, Pakistan could make good use of a soft image, which in turn would have a positive impact in many different ways.

Second, developing the tourism industry can help boost the GDP. According to World Travel and Tourism Council, the sector contributes about 9.8 percent of GDP, creating about one out every 11 jobs. Its potential in Pakistan can be gauged by the fact that the country's tourism exports are already very close to some of the box standard export items such as cotton yarn (See graph). And this is despite the fact that Pakistan is yet to tap its tourism potential.