Why global companies are packing up and leaving Pakistan?

Procter & Gamble (P&G), the global consumer goods giant, becomes the latest multinational to begin winding down its manufacturing and commercial operations in Pakistan.

Big international brands aren’t leaving Pakistan because of a single problem—it’s a mix of economic strain, policy uncertainty, and changing global strategies. For many firms, the cost of staying now outweighs the benefit of being here, and the risks have become too big to ignore. 

1. A Weak Economy That Drains Profits 

One of the biggest deal-breakers is the constant fall of the Pakistani rupee. When a company earns in PKR but reports in dollars or euros, its profits shrink the moment they’re converted. What looks profitable locally often turns into a loss on the balance sheet. 

On top of that, sending money out of Pakistan has become a nightmare. With low foreign reserves, the State Bank has tightened capital controls, leaving some companies with millions stuck in the country. Add to this the import restrictions meant to save dollars—factories can’t get raw materials or spare parts on time, and production slows to a crawl. 

2. Politics and Policy Whiplash 

For any business planning to invest long-term, stability is key. Pakistan’s political turnover, abrupt policy shifts, and sudden tax changes make planning nearly impossible. Companies can’t commit millions when rules can change overnight—or worse, retroactively. 

Read more: Over 172000 Pakistanis left country for work abroad in early 2025

Then there’s taxation. High corporate taxes, complicated compliance procedures, and arbitrary enforcement make Pakistan one of the toughest markets to operate in. Weak contract enforcement and slow legal processes only add to investor frustration. 

3. Hard to Operate, Harder to Grow 

Even daily operations are a struggle. Inflation has battered the average household, shrinking demand for branded and premium products. Companies like Uber and Careem have already pointed to falling purchasing power as a reason to scale back. 

Energy shortages and rising electricity and gas tariffs make production expensive and unpredictable. In some sectors, like pharmaceuticals, strict price caps make it highly not possible to operate profitably when raw materials are imported and prices can’t adjust. 

4. Sometimes, It’s Just Strategy 

Not every exit is a Pakistan-only story. Some companies, like Shell and P&G, are restructuring globally—selling off assets in smaller markets to focus on big regional hubs. Others aren’t fully leaving but switching to third-party distributors.

This is meant to keep their brands in the market without dealing with currency risks, regulations and day-to-day operations.