The government is under increasing pressure to prevent a steady exodus of multinational companies from Pakistan. While more than 200 global firms remain active, their growing departures are raising serious economic red flags. These multinationals contribute a substantial portion of tax revenues, but their lack of exports and high repatriation of profits is creating an unsustainable pattern.
According to insiders, the authorities are now considering a business-protection framework aimed at retaining these companies. A key part of this involves rethinking tax strategies—moving away from heavy import tariffs toward policies that reward efficient, export-oriented operations. One proposal under review is to eliminate or reduce the burden of federal excise duty and other indirect taxes for well-compliant multinationals.
The sharp rise in foreign firm exits has been linked to a range of issues: discriminatory tax policies, steep corporate tax rates, regulatory uncertainty, and growing difficulties in repatriating profits. Additionally, rupee devaluation, inflation, and frequent policy changes are adding pressure. Some companies reportedly face blocked dividends running into the billions of dollars.
Experts warn that a further foreign-company run could deal a blow to Pakistan’s reputation. These multinational players are not just profit machines—they bring advanced technology, best-in-class management practices, and valuable employment opportunities. Their exit creates a gap not only in capital but also in expertise and innovation.
Industry associations are calling for urgent reforms. They want simplified tax structures, stable regulation, and clear protection mechanisms. Their concern is not just profit—it’s about sustaining foreign direct investment, preserving high-quality jobs, and maintaining the country’s competitiveness on the global stage.
As the debate intensifies, the hope among business leaders is that the government recognizes the wider cost of these exits and takes decisive steps to stem the tide before it’s too late.