ISLAMABAD: Pakistan’s finance chief acknowledged on Wednesday some companies have exited the country due to high production and operational costs, though he pointed out that others have adapted their business models and are expanding amid the government’s efforts to move from economic stabilization to sustainable growth.
Several high-profile multinational firms in the consumer goods, energy, telecommunications, pharmaceuticals and manufacturing sectors have exited or scaled back operations in Pakistan over recent years, as the government sought to stabilize a weakening economy through stringent structural reforms, currency controls and fiscal tightening. These included organizations such as Shell, Procter & Gamble, Lotte Chemical and Telenor, while others transferred or shut local manufacturing units amid rising costs, import restrictions and policy uncertainty.
Speaking at the Pakistan Policy Dialogue in Islamabad, Finance Minister Muhammad Aurangzeb said the government was focused on sustaining reforms after repeated boom-and-bust cycles that had left Pakistan reliant on successive International Monetary Fund (IMF) programs.
“Now there are firms who are also leaving, which is true,” he said. “But those firms which have been able to look at their business models and adapt are staying and expanding. It takes two to tango. The government has its role, and the private sector has its role.”
