Finance Minister Muhammad Aurangzeb has said that while some multinational companies have exited Pakistan, new investors — particularly from the Middle East — are showing interest in the country’s economy.
In an interview with a private news channel on Wednesday, the finance minister noted that multiple factors drove the recent exits of several multinationals from the South Asian country.
“There are two or three aspects to this issue. The first is that global companies often make strategic decisions based on their own priorities — deciding which clients to continue with, which products to focus on, and which countries to operate in,” said Aurangzeb.
In recent months, several multinational companies, including P&G, Telenor, Microsoft and Careem, have announced plans to scale back or cease operations in Pakistan.
However, Aurangzeb believed that while some companies have left Pakistan, others have entered.
Citing the example of Aramco, Wafi Group and Mashreq Bank, he said “we’re also seeing a shift from West to East, where new players from the Middle East are showing growing interest”.
“Just last week, Mohammad Ali [privatisation minister] and the prime minister announced the privatisation of the First Women Bank, which was sold to United Arab Emirates-based International Holding Company (IHC).
“This wasn’t just a matter of them buying it for $14 or $15 million,“ he said. “They have big plans to invest in expanding the bank’s network and making it digitally advanced.”
He added that Abu Dhabi Ports and other regional institutions are also interested. “So this clearly indicates a strategic investment shift toward Pakistan.”
However, the finance minister acknowledged challenges faced by foreign investors in the past.
“If their capital was stuck here, or if they couldn’t repatriate profits or dividends, it created frustration, but those issues have now largely been resolved,” he said.
The finance minister also noted that Pakistan’s local industries are evolving rapidly
“There’s also a natural evolution happening — local companies are becoming highly productive and cost-efficient, giving run-of-the-mill to global players.
“This is the fourth major factor — the rise in quality and efficiency of local industries. Just like the old perception about ‘Made in China’ has changed, our local companies and conglomerates are now evolving into world-class entities,” he said.
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