In recent months, several major multinational companies have either wound up their operations or significantly scaled back their presence in Pakistan, reflecting the country’s increasingly challenging economic environment.
ExxonMobil was one of the first to exit, shutting down its operations in Pakistan in late 2023. The energy giant cited a range of difficulties, from regulatory hurdles to concerns over investment security and profitability, particularly in the oil and gas exploration sector. The complex and often unstable economic conditions in Pakistan proved to be too formidable for ExxonMobil to continue its operations successfully.
Procter & Gamble (P&G) also began scaling back its operations in early 2023, facing the harsh realities of currency devaluation and rising costs. P&G found it increasingly difficult to maintain profitability in such a volatile market and decided to halt several product lines, redirecting its focus to more stable regions.
General Electric (GE) followed suit, starting to scale down its operations in early 2024. GE, deeply entrenched in Pakistan’s energy sector, struggled with delays and financial losses in its power generation projects. The broader economic instability and inconsistent policies further complicated GE’s ability to sustain its business.
Telenor, one of Pakistan’s prominent telecom providers, announced its decision to downsize in mid-2024. The company pointed to severe economic downturns and declining profitability in an increasingly competitive market. Coupled with regulatory challenges and high operating costs, Telenor found it necessary to scale back its operations in the country.
Finally, Shell decided to exit the retail fuel business in Pakistan by mid-2023. Shell’s departure was driven by an unviable business environment, characterized by regulatory uncertainties, fluctuating fuel prices, and the devaluation of the local currency. Faced with significant financial pressures, Shell opted to sell its stakes and exit the market.
These decisions by some of the world’s largest corporations underscore the severe economic challenges currently facing Pakistan, including high inflation, currency instability, and an unpredictable regulatory landscape.
