Moaaz Manzoor

The Institute of Cost and Management Accountants of Pakistan (ICMA) has said that the recent exits and restructuring decisions by several multinational companies operating in Pakistan form part of broader global and regional realignment strategies, rather than isolated developments linked solely to Pakistan’s domestic market conditions.

According to the ICMA’s research report available with Wealth Pakistan, many global companies have been reshaping their operations across multiple countries as part of long-term restructuring programmes focused on cost optimisation, portfolio adjustments and strategic concentration on more profitable markets.

The analysis notes that similar trends have taken place in India, Bangladesh, Sri Lanka, Nepal and the Maldives, where multinationals have either streamlined operations, consolidated units, or withdrawn from specific segments due to regulatory pressures, high operational costs or limited market potential.

The report highlights that companies exiting Pakistan between 2023 and 2025, such as Shell, P&G, Microsoft, Pfizer, TotalEnergies and Telenor, acted largely in line with global corporate-level restructuring decisions. Several organisations either divested their stakes, discontinued manufacturing units, or shifted to partner-led or distributor-led business models already implemented in other regions.

ICMA’s findings show that multinational exits in Pakistan frequently coincided with broader structural changes. Examples include P&G’s global transition toward asset-light operations, Shell’s global restructuring of downstream assets, and technology firms’ shifts toward regional service hubs. The report emphasizes that these actions were consistent with international restructuring patterns.

The study also records that South Asian markets experienced similar developments. In India, multinational firms streamlined underperforming brands and rationalised plant operations. In Bangladesh, companies faced exits or restructuring due to taxation and compliance pressures. In Sri Lanka and Nepal, high operational costs, regulatory uncertainties and small market sizes triggered selective divestments or reduced footprints. The Maldives also saw targeted exits in banking and aviation due to profitability constraints.

ICMA notes that while Pakistan faces challenges such as high taxation, inflation, foreign exchange constraints and operational bottlenecks, these issues align with pressures seen by multinationals in other developing economies. The report argues that Pakistan’s situation should be assessed within the wider global context of shifting investment strategies and evolving corporate models.

Despite these exits, the report underscores that Pakistan continues to offer substantial opportunities in key sectors including energy, automotive, information technology, digital services and Special Economic Zones. The country’s large consumer base and expanding demand in essential sectors remain attractive to foreign investors, even as companies restructure their operating frameworks.

The ICMA report concludes that multinational adjustments in Pakistan reflect global strategic movements rather than a withdrawal of confidence from the Pakistani market. It recommends that supportive policies, regulatory stability and streamlined investment processes can enhance investor sentiment and help attract long-term foreign participation.

Credit: INP-WealthPk