Why Multinational Companies are leaving Pakistan? - Explained

Описание: #pakistaneconomy #investmentinpakistan #foreigninvestment #pakistan #pmshehbazsharif #fieldmarshalasimmunir #breakingnews #arynews

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American multinational corporation Procter & Gamble said on Thursday that it would wind down its manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue to serve customers as part of a restructuring programme.

The news comes as various multinational corporations (MNCs) have pulled their operations from Pakistan over the past three years, including Eli Lilly, Shell, Microsoft, Uber and Yamaha.

Does this point to a greater trend suggesting that the economic climate in Pakistan is inhospitable for multinationals, or are there other reasons? Here’s what analysts have to say:

‘Companies have own reasons for exiting’

Business and economy journalist Khurram Hussain said that companies have “their own reasons” for exiting. “It is not really about Pakistan, but restructuring at their end,” he said.

“Take Shell as an example. They have exited the retail fuel business in Mexico and Indonesia as well as Pakistan, and retail energy more broadly in many other markets,” he said.

“They’re trying to refocus in higher margin areas like liquefied natural gas etc […] their exit from Pakistan was part of this global restructuring,” he said.

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