A new wave of corporate exits is signalling trouble for the economy.

Procter & Gamble will wind down local operations and shift to third-party distribution. In the last two years, Sanofi-Aventis was sold out, Eli Lilly ceased manufacturing, Bayer wound down operations, Shell sold its business, TotalEnergies exited a significant stake, Telenor sold its mobile operations, Pfizer divested local assets, and in 2025, Microsoft shut down its domestic offices, while Careem suspended services.

The pattern spans sectors and business models, which is precisely why it matters. Each firm offers its own rationale, yet the aggregate signal to global boards is clear: Pakistan has become a difficult venue for large, rule-bound companies. Reputation is a leading indicator. When blue-chip names retreat, capital listens.

Markets vote every day; boards vote with exits.

P&G’s decision is another warning about an investment climate that discourages rather than protects capital. If the trajectory were genuinely improving, global brands would be queuing for entry, not looking for the door. The core complaint is policy unpredictability. Overseas investors have warned for years that abrupt shifts and reversals destroy planning horizons and push up risk premia, even when demand exists.

Tax policy has become a drag rather than a fix. Over the past year, large companies faced a 29 per cent corporate income tax, an 18 per cent general sales tax, and a super tax of up to 10 per cent. Business leaders argue that Pakistan’s effective burden now exceeds that of regional competitors and requires rationalisation to restore........

© The Friday Times