In a blow to Pakistan’s faltering economy, several global giants have abandoned their operations amid crippling taxes and energy expenses, according to Finance Minister Aurangzeb. This mass departure signals deep-seated problems that could hinder the country’s growth for years.
From automotive parts suppliers to apparel brands, the list of exiting firms is growing. These companies, which invested billions over the years, now view Pakistan as too risky. The minister pointed to punitive tax policies and power tariffs that have doubled in recent months as primary culprits.
Pakistan’s energy sector is in turmoil, with frequent blackouts and bills inflated by subsidies gone awry. Businesses report paying rates three times higher than regional competitors in India or Bangladesh. ‘We can’t compete globally under these conditions,’ echoed sentiments from industry leaders.
Aurangzeb outlined upcoming reforms, including tax simplification and renewable energy pushes, but skepticism abounds. The IMF, a key lender, has urged faster action to avert default. Foreign investment inflows plummeted 20% last quarter, per official data.
Local manufacturers are scrambling to fill the void, but lack the scale and technology. Unemployment is ticking up, straining social services. This corporate flight not only drains capital but erodes investor confidence, making revival harder. Pakistan must act decisively to stem the tide.