In a stark admission that underscores Pakistan’s mounting economic woes, Finance Minister Muhammad Aurangzeb has confirmed that numerous multinational corporations are pulling out of the country due to exorbitant taxes and soaring energy costs. Speaking at the Pakistan Policy Dialogue organized by the Policy Research and Advisory Council in Islamabad, Aurangzeb did not mince words: ‘Some companies are leaving Pakistan, and this is true.’ He pinpointed high tax structures, elevated energy expenses, and costly financing as the core culprits crippling business viability.
The minister urged remaining firms to revamp their business models to align with modern global standards, a call that highlights the desperation to stem the tide of exits. Recent years have seen giants like Procter & Gamble, Eli Lilly, Shell, Microsoft, Uber, and Yamaha shift operations to Gulf nations and beyond, citing oppressive taxation as the primary driver. Local investors have echoed these grievances for years, demanding urgent reforms to slash operational costs.
Aurangzeb emphasized that economic growth won’t materialize without deliberate action to lure investment and bolster industrialization. The latest blow comes from Telenor Group, which has finalized the sale of its Pakistani operations to Pakistan Telecommunication Company Limited, effectively winding down its presence. Adding to the list is Qatar’s Al Thani Group, which voiced frustration over delayed government payments amid economic uncertainty and political instability, even threatening to suspend operations.
As Pakistan grapples with these departures, the business climate appears increasingly hostile. Ignoring these red flags—high taxes, energy tariffs, and financing hurdles—risks further isolation from global markets. The government’s next moves will be pivotal in determining whether it can reverse this exodus and revive investor confidence.