Pakistan’s Finance Minister Muhammad Aurangzeb dropped a bombshell at the Policy Research and Advisory Council’s event in Islamabad, admitting that multinational exits are accelerating due to crippling taxes and energy prices. ‘This is reality—companies are departing,’ he declared at the Pakistan Policy Dialogue, attributing the flight to lofty tax rates, exorbitant electricity bills, and steep borrowing costs.
Advising companies to evolve their models for contemporary demands, Aurangzeb faces an uphill battle. The roster of leavers is impressive: Procter & Gamble, Eli Lilly, Shell, Microsoft, Uber, Yamaha, and dozens more have pivoted to Gulf states, decrying ‘overly burdensome’ levies. Pakistani entrepreneurs have voiced similar frustrations, pushing for structural fixes to tame business expenses.
Telenor’s full-scale retreat via sale to PTCL exemplifies the trend, while Al Thani Group’s ire over delayed dues—coupled with economic and political headwinds—threatens operational halts. Aurangzeb underscored the need for ‘solid, actionable measures’ to magnetize investments and fuel industrial growth.
The implications are profound: a hostile ecosystem repels capital, stifles jobs, and hampers development. This ministerial acknowledgment could catalyze change, but history suggests rhetoric alone won’t suffice. Pakistan must prioritize reforms to reclaim its place as an attractive market, or witness more giants vanish over the horizon.