Several multinational companies operating in Pakistan are contemplating, or have already initiated, the relocation of their offices to other countries.
According to a recent report by Arab News citing the Dubai Chamber of Commerce, 3,986 Pakistani companies registered in Dubai from January to June, marking a significant increase from the 3,395 registrations during the same period last year. Pakistan now ranks second in the list of countries with companies registered in Dubai, with 8,036 new Pakistani businesses recorded over the past year.
This trend underscores a growing inclination among Pakistani businesses to establish operations abroad, reflecting diminishing confidence in domestic economic policies. The Pakistan Business Council has voiced concerns, noting that numerous multinational corporations are relocating their operations due to underutilised electricity capacity, adversely affecting exports, unemployment, and tax revenue.
Additionally, the business community, including the Pakistan Business Council and the Overseas Investors Chamber of Commerce and Industry, has highlighted significant impediments, such as slow internet speeds and the implementation of restrictive firewalls. These factors are estimated to potentially cost the country losses of up to $300 million, signalling a pressing need for policy reforms to retain and attract business investments.
