Finance Minister Muhammad Aurangzeb on Wednesday acknowledged that some companies are leaving Pakistan because of high taxes, costly energy, and expensive financing.
Speaking at the Pakistan Policy Dialogue in Islamabad, he said the government fully understands the pressures facing businesses and the wider economy. He admitted that high taxation and energy costs remain serious hurdles for firms operating in the country.
At the same time, Aurangzeb said Pakistan has attracted 20 new foreign investors over the past 18 months. These include global names such as Google, Saudi Aramco, Wafi Energy, and Turkish Petroleum.
“There are firms which are leaving, that is true,” he said. He added that high taxes, rising energy prices, and financing costs have become real issues for many businesses.
Aurangzeb said the government has launched reforms to reduce pressure on the national exchequer and restore economic stability. He stressed that policy changes aim to make Pakistan more competitive for both local and foreign investors.
He also highlighted the role of business models in determining whether companies stay or exit. Aurangzeb said firms that adapted by shifting to local sourcing improved their margins and expanded exports. As a result, they chose to remain in Pakistan.
“Those that could not adjust their business models need to rethink their approach,” he said, adding that economic realities have changed over time.
The finance minister said structural reforms are underway across multiple sectors. He added that the transformation of the Federal Board of Revenue is progressing to strengthen compliance and enforcement.
“Strong compliance and enforcement are essential for effective tax implementation,” Aurangzeb said, reaffirming the government’s commitment to long-term economic reform.
