A candid confession from Pakistan’s Finance Minister Muhammad Aurangzeb has spotlighted the nation’s business exodus. High taxes and energy costs are pushing multinationals out, he revealed while addressing the Pakistan Policy Dialogue in Islamabad, hosted by the Policy Research and Advisory Council. ‘Companies are leaving, and it’s true,’ he affirmed, listing elevated tax frameworks, power tariffs, and financing burdens as undeniable barriers.
Aurangzeb called on firms to modernize operations, yet the trend persists. Over recent years, heavyweights including Procter & Gamble, Eli Lilly, Shell, Microsoft, Uber, and Yamaha have shuttered Pakistani offices, migrating to Gulf hubs and other markets due to punitive taxes. Local business lobbies have persistently advocated for relief, underscoring the crisis’s breadth.
Fresh developments amplify the concerns: Telenor has divested its entire Pakistan portfolio to PTCL, exiting the telecom scene. Qatar’s Al Thani Group, frustrated by government payment arrears amid instability, has joined the fray with suspension threats. The minister stressed that ‘economic growth doesn’t happen on its own’—targeted reforms are essential for investment inflows and industrial momentum.
Pakistan’s deteriorating business environment demands immediate attention. These high-profile departures not only erode revenue but also tarnish the country’s global image. As leaders deliberate, the onus is on crafting investor-friendly policies to halt the hemorrhage and chart a path to recovery.