PAKISTAN has recently witnessed the departure of several MNCs, raising concerns about its capacity to attract and retain foreign direct investment. The exit of major players such as P&G, following earlier departures of Shell, Pfizer, Total and Telenor, has intensified anxieties, given also the expectations of investment from the Middle East. Since 2010, Pakistan’s annual net FDI has averaged $2 billion, in contrast to Vietnam’s $14bn and India’s $44bn.

Many challenges have contributed to the exit of MNCs. A weak economic environment and unpredictable government policies hinder long-term planning. Businesses face high taxation and energy costs. Unfair competition from the informal sector impacts the investment climate. Intel­lectual property protection is weak, leaving companies vulnerable to counterfeiting. Investors grapple with restrictions and delays in remitting profits, royalties and technical fees. Rupee devaluation negatively impacts parent company profits.

Despite these obstacles, FDI brings benefits beyond capital inflows. It fosters the development of local talent and introduces new technologies. Talent from companies such as Citibank, Unilever, ICI and P&G is recognised for its contributions in and beyond........

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