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Pakistan’s economy is collapsing, the burden of foreign debt on the country is increasing. Meanwhile, Pakistan has suffered another major setback. In the last 2 years, 9 billionaire companies have withdrawn their business from Pakistan.
Increasing debt on one hand and decreasing foreign exchange reserves on the other, the condition of the neighboring country has become so thin that many big companies do not want to do business there. Pakistani currency is getting weaker, its value has reached around Rs 278 against 1 dollar. In such a situation, everyone wants to get rid of this sinking ship as soon as possible.
9 companies closed business in 2 years
The companies that closed their business from Pakistan were able to invest further and expand their business on a large scale but these companies chose the way out of Pakistan. These include big industries like Pfizer, Uber and Telenor.
1. Pfizer– American pharma company Pfizer has sold its manufacturing operation to Pakistan’s Lucky Group in May 2024. Pfizer was present in the pharma market of Pakistan for a long time, so its exit from Pakistan shows that the situation of the pharma sector is also not good there.
2. Shell– Netherlands’ giant in the energy sector, Shell, has also said tata-bye-bye to Pakistan by selling its retail business and lubricant plant to Pakistan’s Wafi Energy Group.
3. Uber– While this giant American company is continuously expanding its service in India, it has stopped its operations in view of the poor economic conditions of Pakistan. This also includes the food delivery service of Uber’s subsidiary Careem. Uber has taken this decision due to market challenges, regulatory hurdles and pressure of competition.
4. Total– France’s Total Energy Company has sold its shares to Gunvor Group on 7 August 2024. Be it the energy sector or any other sector in Pakistan, the situation is the same everywhere. No sector is untouched by the poor economic conditions of the country.
5. Eli Lilly Pakistan– This American company is one of the largest pharmaceutical manufacturers in Pakistan. It had shut down manufacturing operations in Pakistan two years ago in 2022 itself.
6. Sanofi– France’s Sanofi sold more than half of its stake in Sanofi Aventis Pakistan Limited in April 2023. The company has sold its 52.87 percent stake to an investor consortium led by Packages Limited.
7. Telenor– Norway’s telecom company Telenor sold its operations to Ufone/PTCL in December 2023. At a time when there is competition as well as great opportunities in the telecom sector, Telenor’s move reflects the challenges associated with this sector in Pakistan.
8. Viatris Inc.- Another US pharma company Viatris Inc. sold its portfolio of some of its pharma brands to AGP Limited in April 2023. The health sector of the troubled Pakistan is also badly affected. In such a situation, many pharma companies want to wind up their business from there as soon as possible.
9. Lotte Chemical– This South Korean company had sensed the situation in Pakistan a year ago. In May 2023 itself, Lotte Chemical sold its assets to Lucky Core Industries of Pakistan.
The winding up of 9 companies from Pakistan within 2 years shows that its policies and economic conditions are not good. The government of Pakistan is constantly working under the pressure of China, while it is also under pressure to change policies to take loans from the IMF. But in this way, disinvestment of such big companies from Pakistan can affect employment, technological progress and economic development for a long time.
