The video games industry in Pakistan represents a rapidly emerging sector with the potential to contribute significantly to the country’s economy at a time when the government is grappling with economic challenges. This industry has grown rapidly over the past few years and has been able to garner the attention of the private and public sectors, while the future prospects of its growth also appear promising. However, given its tremendous potential, it is paramount that the industry is developed and nurtured further and that the acceptance of gaming by users is catalyzed. In this context, the Working Paper aims to highlight the importance of the gaming sector as a legitimate industry that can provide significant opportunities for economic growth and employment generation in Pakistan. The paper focuses on the evolution and potential of Pakistan’s video games industry, the factors that have led to its development and growth, and its future prospects. Lastly, it outlines several recommendations.