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Economic impact of music industry

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The Music Industry contributes hundreds of billions dollars to the global GDP. Global music revenues reached heights of US $31.7 billion in 2025, adding over $210 billion annually to the US economy and record 81.9 billion in the UK-EU annually. While supporting millions of jobs worldwide through streaming live concerts and goods export, stimulating economic activity and generates tax revenues.Pakistan as a developing nation, has no shortage of musical talent. In its 79-year existence we have seen superstars such Madam Noor Jahan, Mehdi Hassan, Ghulam Ali, Nusrat Fateh Ali Khan, Nazia Hassan, and Atif Aslam just to name a few. These singers have attracted enormous followings and legions of admirers both domestically and abroad. Pakistani artists have proved that they can amass large international audiences, and with the right support from the right institutions and people this can translate into monetary gain not only for them, but for the nation’s wider economy.

Music also shapes society by uniting communities, preserving cultural heritage and driving social change. Music is the language of the Universe and improving mental and physical health through emotional expressions and therapy.
Our musical talent has not been relegated to the distant sands of the past century but has remained alive and healthy in present times. We can see this most evidently perhaps in the franchise of Coke Studio, which in its many seasons has given a platform to up and coming talent, alongside exhibiting collaborations with titans of the traditional music sphere in Pakistan. In recent times, Pakistani artists such as Arooj Aftab have shined upon the global stage, with her securing a Grammy in the Best Global Music Performance category in 2022 for her track “Mohabbat”. This is in no way an isolated occurrence, and the untapped well of talent in Pakistan presently and into the future, is more than enough to sustain the nation’s and the world’s collective music lovers.

The benefits to Pakistan from music, are not relegated to the merely what many would argue is a superficial advantage. It is monetary. According to a British Council Report the music industry in Pakistan turns over about US$100 million annually and is responsible for the creation of tens of thousands of jobs. This of course has the benefit of contributing to the GDP of the country, which would increase consumer confidence and result in economic growth and an increase in financial prosperity. The way in which such a financial contribution is made is the result of multiple mediums of communication in the country. The chief amongst them are Music publishers, recording studios, authors performers, artist management, CMO’s, music radio, Music television, digital music services, Physical music retail. Live music event production, concert venues, touring services, manufacturing and retailing of musical instrument and Music equipment, music merchandising and music teachers.
Music Companies, Music Labels as well as CD or DVDs. These mediums work to increase the reach of the songs, and as such lead to an increase in sales of the artists’ works, resulting in a higher turnover not only for their agencies, but the musicians themselves.

The level of such a turnover, on the side of the artist, as to if they get their fair share in term of royalty and share in the music industry, is another question entirely. It is in such a domain where there have been many unfortunate cases of record labels exploiting their financially and legally illiterate stars, by fooling them into the signing of absurdly unbalanced contracts. As such, the artist who finds himself in such a conundrum is to only seek the help of a competent legal professional, who will be able to advise and advocate for them in the courts, as well as on the negotiating table, so that their interests are protected. This extends to the collection of unpaid royalties to artists from unauthorized users, which if left undisturbed can rack up millions of rupees of revenue which does not go to its rightful creator and revenue department. It is in relation to the proper collection of music royalties, that Collective Management Organizations have taken root in the world. In Pakistan, we see the first ever example of such an organization in the form of COMP, which if run well would lead to the interests of Pakistani singers being protected, along with their financial positions improving.

If the financial struggles of artists are lessened to whatever degree they may be through such aid, the benefits enter into the domain of the moral as well. When the overall interest, exercise and exhibition of art in a society increases, the more degenerating influences born from despair, boredom and misanthropic attitudes lessen. As a result, young people with limited prospects who would have turned to crime in an effort to support themselves as well as to lash out against a world which had forsaken them, would now look upon the world as a delicate field of possibilities and beauty.

In the realm of private benefactors in Pakistan, EMI Pakistan proves to be the only music label to provide financial assistance to musical artists. This was seen most recently where the label distributed royalty cheques to the legendary Pakistani singers. This is an immensely positive step for the country’s musical community, as we see the households which provided emotional support to these great artists all their lives receive appreciation for their deeds, even if the singers in questions have since passed. It is doubly important in view of the fact that many of these legendary singers, though greatly admired and appreciated, passed away in deeply troublesome financial states, either due to third party exploitation or uninformed mismanagement.
This could lead to other legacy music labels in Pakistan, as well as some departments of the government to follow in EMI’s footsteps. On the other side the Government should promote cultural grants and artist welfare organizations and set up specialized nonprofit relief Funds that offer emergency and medical grants and career development subsidies for young music performers. The music industry of Pakistan has not been recognized as an industry. The artists belong to this Music industry lack digital marketing strategies and promotion. They further need legal assistance for signing musical contracts and protected licensing regime of their musical works with the music sectors. If this hopeful reality is to be actualized, the benefits explored above would be well worth the money expended to achieve it. It is often said that it takes a village to raise a child; a similar idiom may be utilized in relation to artists. It takes nations to help foster the fruits of the artistic landscape therein. Despite the difficulties, we see a glimmer of hope in EMI.

Muhammad Majid Bashir
(The writer is a former judge and lawyer, Email: [email protected])

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