Finance Minister Aurangzeb has sounded the alarm: Pakistan is hemorrhaging international businesses due to punishing taxes and skyrocketing energy bills. His revelation paints a grim picture of a nation struggling to retain its corporate allure in a competitive global market.
From pharma leader GlaxoSmithKline winding down to fast-food chain KFC closing outlets, the list of exits is growing. The core issue? Energy costs that have doubled since 2022, fueled by imported fuel dependencies and inefficient distribution. Taxes aren’t helping either, with super taxes on banks and turnover taxes squeezing margins thin.
Aurangzeb detailed how this exodus has slashed export revenues by 15%, as firms shift to cost-friendly hubs like the UAE free zones or India’s Gujarat. Circular debt in the power sector, now at PKR 2.7 trillion, perpetuates the crisis, forcing industries to rely on expensive diesel generators.
Optimism flickers with promises of renewable energy pushes and tax holidays for special economic zones, but implementation lags. Economists urge a holistic approach: deregulation, skill development, and infrastructure upgrades. For Pakistan, retaining global talent and capital isn’t optional—it’s existential. The coming budget will be a litmus test for real change.