Pakistan’s economic fragility laid bare: Finance Minister Muhammad Aurangzeb openly acknowledged that steep taxes and prohibitive energy prices are driving away major international companies. During his address at the Policy Research and Advisory Council’s Pakistan Policy Dialogue in Islamabad, he stated unequivocally, ‘It is a fact that companies are exiting Pakistan.’ Blaming a burdensome tax regime, skyrocketing power costs, and expensive loans, Aurangzeb painted a grim picture of the investment landscape.
He implored businesses to adapt their strategies for the ‘modern world,’ but the damage is already evident. Powerhouses such as Procter & Gamble, Eli Lilly, Shell, Microsoft, Uber, and Yamaha have relocated to more favorable destinations like Gulf countries, fleeing what they term ‘excessive taxation.’ Even domestic players have long clamored for cost-cutting measures, a plea now validated at the highest levels.
Telenor Group’s complete withdrawal—selling off to PTCL—marks another chapter in this saga. Qatar-based Al Thani Group is the newest casualty, protesting payment delays from the government against a backdrop of political turmoil and economic volatility. Aurangzeb warned that growth demands ‘concrete and practical steps’ to attract capital and industrialize effectively.
This wave of exits signals deep-seated issues that policymakers can no longer sideline. With foreign investment dwindling, Pakistan faces a critical juncture: reform or risk prolonged stagnation. The minister’s candid remarks may spark debate, but without swift policy overhauls, more corporate flight seems inevitable.