Pakistan’s business landscape is undergoing a seismic shift as global companies pack up, overwhelmed by high taxes and prohibitive energy prices. Finance Minister Muhammad Aurangzeb confirmed the trend, warning it threatens the nation’s industrial backbone.
Affected firms span fast-moving consumer goods to heavy engineering. Billions in sunk costs are written off as executives chase better prospects in Vietnam and Indonesia. Aurangzeb emphasized that inconsistent policies have eroded Pakistan’s edge in low-cost labor.
Energy tariffs, adjusted monthly upward, now rival Europe’s despite abundant hydro potential untapped. Tax evasion crackdowns, while necessary, have ensnared compliant firms in red tape. Combined, these squeeze margins to breaking point.
Reform blueprints include digital invoicing for taxes and solar incentives for industry. Yet, political gridlock hampers progress. FDI halved year-on-year, per State Bank figures, signaling distress.
The human cost is profound: skilled workers emigrate, supply chains fracture. Economists advocate public-private partnerships to rebuild trust. Aurangzeb’s statement spotlights the urgency—Pakistan can’t afford to lose more ground in the global race.