Pakistan’s Finance Minister, Muhammad Aurangzeb, acknowledged that multinational companies are leaving the country due to high taxes and energy costs. Speaking at the Pakistan Policy Dialogue in Islamabad, he emphasized the difficulties faced by global firms in doing business in Pakistan. Companies like Procter & Gamble, Eli Lilly, Shell, Microsoft, Uber, and Yamaha have relocated their offices to Gulf countries and other destinations due to excessive taxation.
Aurangzeb urged companies to adapt their business models to align with the modern world amidst concerns over taxation, energy costs, and financing expenses. Local investors have also been advocating for measures to reduce the cost of doing business in the country. Telenor Group recently sold Telenor Pakistan to Pakistan Telecommunication Company Limited (PTCL) as the business environment in Pakistan became increasingly challenging.
The economic uncertainty and political turmoil in Pakistan have led to foreign companies like the Qatar-based Al Thani Group withdrawing from the country. The Al Thani Group expressed dissatisfaction with delays in receiving payments from the Pakistan government and warned of potential operational suspensions. To spur growth and attract investments, Pakistan needs to take concrete steps towards industrialization.
