Moaaz Manzoor

The Institute of Cost and Management Accountants of Pakistan (ICMA) has reported that a growing number of multinational companies (MNCs) operating in Pakistan are shifting toward asset-light, partner-led and distributor-driven business models as they face rising costs, regulatory uncertainties and evolving market conditions.

According to the ICMA study available with Wealth Pakistan, multinationals across sectors including FMCG, manufacturing and technology have reconfigured their local operations to reduce overheads while maintaining market presence.

The report notes that companies are increasingly outsourcing non-core functions, relying on local distributors, and adopting flexible operational structures supported by digital tools such as e-commerce platforms and online marketing.

ICMA cites the example of manufacturing firms that have either downsized or relocated production to regional hubs as part of broader cost-optimisation efforts. In the FMCG and retail sectors, companies have expanded their reliance on distribution partners and modern supply networks to ensure continuity of sales without maintaining large-scale physical operations.

The report highlights that these shifts follow a global trend in which multinational corporations streamline operations and prioritise efficiency in response to fluctuating commodity prices, inflation, and competitive pressures. Distributor-led models allow companies to limit financial exposure while retaining their brands in the market.

The research identifies asset-light strategies as a key component of multinational restructuring in Pakistan. These strategies include reducing dependence on fixed assets, minimising investment in physical infrastructure, and focusing on marketing, product development and supply-chain partnerships to sustain operations.

According to the findings, technology and services firms are also transitioning toward models driven by remote delivery, regional integration and digital channels. ICMA states that companies in these sectors increasingly prefer scalable structures that rely on technology-enabled systems instead of on-ground assets.

The study notes that regulatory challenges and cost drivers, such as high electricity tariffs, heavy taxation and administrative delays, have reinforced the shift away from capital-intensive operations. As a result, companies seeking long-term presence in Pakistan are adopting operational frameworks that provide flexibility in periods of economic uncertainty.

ICMA emphasises that distributor-led or partnership-based models remain viable for multinational firms that wish to stay engaged in the Pakistani market while avoiding the financial risks associated with extensive direct investment. The report observes that these models are already widely used in global markets and reflect changing strategies within multinational corporations.

According to the institute, such operational adjustments illustrate a broader transformation in how foreign companies participate in Pakistan’s economy. ICMA notes that supporting these evolving business models through clearer regulations and improved operational environments can help maintain the country’s attractiveness for foreign investors.

Credit: INP-WealthPk