Islamabad: Over the past three years, Multinationals Exit Pakistan has become a defining trend, with global corporations either divesting or shutting down operations. From pharmaceutical giants like Pfizer and Eli Lilly to energy players such as Shell and TotalEnergies, the departures reflect growing concerns about the country’s business climate.
Industry experts warn that unless reforms are implemented, Pakistan risks further erosion of foreign direct investment (FDI) at a time when the country urgently needs capital inflows and stable economic growth.
A Timeline of Multinational Exits
Pharmaceuticals
- Eli Lilly (2022): Ceased local operations in November 2022, shifting distribution to local partners.
- Sanofi-Aventis (2023): Sold its 52.87% stake in Sanofi-Aventis Pakistan to Packages Group in April 2023.
- Bayer (2023): Divested local pharma assets mid-2023, acquired by OBS Group.
- Pfizer (2024): Sold Karachi plant and portfolio to Lucky Core Industries (May 2024).
Energy Sector
- Shell (2023): Announced exit and divestment of its majority stake in Shell Pakistan.
- TotalEnergies (2024): Sold its 50% stake in joint venture Total PARCO to Pakistani partners in August 2024.
Telecom & Tech
- Telenor Pakistan (2023–2024): Began divestment process, with PTCL/e& leading acquisition.
- Microsoft (2025): Announced closure of its local office in July 2025, continuing services via regional hubs.
Mobility & Digital Platforms
- Careem (2025): Suspended its ride-hailing service in July 2025, citing funding and market constraints.
Consumer Goods / FMCG
- Procter & Gamble (2025): In early October 2025, P&G announced that it will wind down its manufacturing and commercial activities in Pakistan, including those of Gillette Pakistan, as part of its global restructuring programme. It plans to switch to a third-party distributor model for its products in the country. Gillette Pakistan’s board is expected to evaluate steps that may include delisting from the Pakistan Stock Exchange (PSX).
Why Multinationals Exit Pakistan Happening?
Interviews, company filings, and independent reports highlight several recurring themes. One of the most pressing is macroeconomic instability. The Pakistani rupee has depreciated sharply over the past few years, making it increasingly difficult for companies to sustain profitability.
At the same time, inflation rates hovering above 25 percent during 2022 and 2023 pushed input and wage costs beyond manageable levels, forcing multinationals to rethink their operations in the country.
Another critical factor is regulatory and operational barriers. Delays in government approvals, coupled with restrictions on profit repatriation, have discouraged foreign firms from investing further.
The pharmaceutical sector in particular has voiced concerns over slow drug pricing and registration processes, which many companies argue have hindered their ability to innovate and respond to market needs.
Corporate strategy has also played a role. Some departures, such as those of Sanofi and TotalEnergies, were part of wider global realignments that prioritized high-growth regions over relatively stagnant ones. Others, including Microsoft and Careem, made decisions that were more directly tied to local conditions such as declining consumer demand, strong competition, and a lack of capital support.
The P&G case adds weight to the argument under the “Corporate Strategy & Global Portfolio Shifts” theme. Its exit is explicitly tied to a global restructuring plan, confirming that multinational companies are increasingly adopting lighter operational models when faced with high local costs and regulatory uncertainty.
Read more: Crossing 168k: Pakistan’s Market Sends a Bold Signal to the World
Impact on Pakistan’s Economy
The immediate consequences of these exits have been felt across multiple sectors. Skilled jobs in pharmaceuticals, telecom, and information technology have been lost, creating uncertainty for thousands of professionals. In some cases, supply chains were disrupted, particularly in healthcare, where certain medicines temporarily disappeared from the market until local buyers stepped in.
The long-term implications are more far-reaching. Investor confidence has been eroded by the repeated pattern of divestments, raising concerns about Pakistan’s ability to attract fresh capital. The withdrawal of major technology and pharmaceutical players has also reduced opportunities for technology transfer, research partnerships, and knowledge-sharing that multinationals typically bring.
At the same time, local companies such as Packages, OBS Group, and Lucky Core have moved in to acquire the assets and brands left behind, ensuring at least some continuity and domestic ownership.
With P&G’s exit, the scale of impact in the consumer goods sector has broadened. Employees whose roles are impacted will be considered for opportunities outside Pakistan or offered separation packages under local law.
The possible delisting of Gillette Pakistan from the PSX also adds to shrinking visibility of foreign-brand listed companies in local capital markets.
While corporate exits highlight challenges in Pakistan’s investment climate, the country’s capital markets have at times signaled resilience. Just this week, the Pakistan Stock Exchange crossed the historic 168,000 mark (read full report), suggesting that investor sentiment remains complex and cannot be understood through exits alone.
Expert Commentary
Economists argue that Pakistan must move swiftly to stabilize its currency and establish regulatory consistency if it wants to stem the tide of exits. Business chambers have called for reforms to streamline taxation and ease barriers to profit repatriation, pointing out that current rules are discouraging foreign reinvestment.
Policy analysts suggest targeted incentives for pharmaceuticals and information technology, two sectors most affected by recent withdrawals, warning that without support they may continue to shrink rather than grow.
Experts have pointed out that P&G’s exit underscores the argument that not all multinational departures are due to failing markets alone; often they are responses to global shifts in how consumer goods companies organize supply chains and operations. Some analysts are increasingly saying that Pakistan’s attractiveness as a direct manufacturing base is weakening relative to the risks.
The Road Ahead
Pakistan’s challenge now is twofold: to reassure foreign investors that the country remains a viable market, and to support local businesses that are absorbing the divested operations. Stabilizing the macroeconomic environment, simplifying regulatory procedures, and sending a clear signal of long-term policy direction will be crucial steps.
Without urgent action, analysts caution that Pakistan risks deeper isolation from global supply chains, especially at a time when neighboring economies are actively competing for foreign direct investment.
This report is based on official company statements, regulatory filings, and data from the State Bank of Pakistan, the Pakistan Bureau of Statistics, and analyses from international financial institutions.