Why has Pakistan lost a number of multinational companies?

A number of multinational companies have left Pakistan in recent years, which has been confirmed by Finance Minister Muhammad Aurangzeb.

Pakistan’s worsening reputation for foreign businesses is no longer speculation. It is a documented reality, marked by a clear timeline of exits and shutdowns.

In April 2022, Uber officially announced it was exiting Pakistan, citing global restructuring. But insiders and industry observers were clear: Pakistan’s regulatory uncertainty and compliance pressures made the market expendable.

In June 2023, Shell Pakistan said that parent Shell had notified it of the group’s intent to sell its shareholding in the business.

In July 2023, Microsoft shut down its local operations in Pakistan, ending a presence that spanned over two decades.

Careem, once a symbol of Pakistan’s tech promise, began significantly downsizing operations following its acquisition, leaving thousands in the gig economy uncertain about their future.

In April 2023, Trella, a Maersk-backed logistics startup — announced its exit from Pakistan, openly pointing to economic instability and an impossible operating environment.

In September 2025, Yamaha Motor Pakistan Ltd (YMPL) announced the discontinuation of its motorcycle assembly operations. The decision comes as part of a change in the company’s business strategy.

Expressing his views market expert AAH Soomro said foreign companies consistently face aggressive tax notices, overlapping government authorities, unclear laws, retrospective interpretations, and investigations that feel more like harassment than regulation.

He was of view that Pakistan’s current tax regime does not allow businesses to grow, multi national have the ability to move to other countries where they can be in a lower tax regime, whilst still exporting to Pakistan.

He said Pakistan in terms of production is uncompetitive on energy, tax and ease of business. In order to keep the multinational companies in country, Islamabad needs to formulate business-friendly policies, he added.

Another market expert told ARY News that there are multiple reasons for the departure of multinational companies from Pakistan. He said that rupee depreciation is increasing the cost of domestic production and reducing purchasing power of locals.

Super taxes and other corporate income and non income taxes make cost of doing business much higher compared to India, Bangladesh, Philippines, Vietnam, this is the another main reason why multinational companies chose to say goodbye to Pakistan.

He said most good talent leaves the country causing serious recruitment and retaining issues in already average education system.

Infrastructure unavailability in terms of fast railways and cheaper ports coupled with security risks for travellers also hinder investment.

The gig economy of Pakistan has suffered the most. Delivery riders, call-center staff, influencers and content creators, ride hailing drivers, engineers, and freelancers have paid the price for policy chaos they had no role in creating. When platforms shrink or leave, workers lose income overnight, with no safety net.

If the government wants jobs, investment, and growth, it must work with companies, not antagonize them until they leave.