ISLAMABAD: A growing number of multinational corporations are pulling out of Pakistan, raising alarm over the country’s deteriorating investment climate and economic instability. In recent years, several global giants — including Procter & Gamble, Microsoft, Shell, Uber, and Yamaha — have either exited the market or scaled down their operations, citing a mix of regulatory hurdles, rising costs, and currency volatility.
Experts say the ongoing exodus is a reflection of deep-rooted structural issues in Pakistan’s economy. The rapid depreciation of the rupee, high taxation, inconsistent government policies, and prolonged delays in regulatory approvals have made it increasingly difficult for foreign firms to operate profitably. Multinationals that once viewed Pakistan as a growth frontier are now shifting to regional hub models or outsourcing operations through local partners.
In sectors such as pharmaceuticals, consumer goods, and energy, companies have also voiced frustration over bureaucratic bottlenecks and slow decision-making, especially in price adjustments and licensing. The uncertainty, analysts warn, is eroding investor confidence at a time when Pakistan desperately needs foreign investment to stabilise its balance of payments.
However, experts note that some withdrawals are part of global restructuring rather than being exclusive to Pakistan — as seen in Shell’s decision to sell its retail fuel business in multiple countries. Still, the concentration of exits within a short period underscores the need for urgent policy reforms and better incentives for international investors.
The fallout extends beyond corporate boardrooms. Thousands of jobs are at risk, along with technology transfer and managerial expertise that foreign firms typically bring. Economists caution that if this trend continues, Pakistan could face a significant blow to its industrial competitiveness and long-term economic growth.
The government has yet to issue a comprehensive strategy to restore investor confidence, but business leaders are calling for predictable regulation, currency stability, and pro-business taxation reforms to reverse the decline.
This story has been reported by PakTribune. All rights reserved.