Finance Minister Muhammad Aurangzeb has said that while some multinational companies have exited Pakistan, new investors – particularly from the Middle East – are showing interest in the country’s economy.
In an interview with a private news channel on Wednesday, the finance minister noted that multiple factors drove the recent exits of several multinationals from the South Asian country.
“There are two or three aspects to this issue. The first is that global companies often make strategic decisions based on their own priorities – deciding which clients to continue with, which products to focus on, and which countries to operate in,” said Aurangzeb.
In recent months, several multinational companies, including P&G, Telenor, Microsoft and Careem, have announced plans to scale back or cease operations in Pakistan.
However, Aurangzeb believed that while some companies have left Pakistan, others have entered.
Citing the example of Aramco, Wafi Group and Mashreq Bank, he said “we’re also seeing a shift from West to East, where new players from the Middle East are showing growing interest”.
“Just last week, Mohammad Ali [privatisation minister] and the prime minister announced the privatisation of the First Women Bank, which was sold to United Arab Emirates-based International Holding Company (IHC).
“This wasn’t just a matter of them buying it for $14 or $15 million,” he said. “They have big plans to invest in expanding the bank’s network and making it digitally advanced.”
He added that Abu Dhabi Ports and other regional institutions are also interested. “So this clearly indicates a strategic investment shift toward Pakistan.”
However, the finance minister acknowledged challenges faced by foreign investors in the past.
“If their capital was stuck here, or if they couldn’t repatriate profits or dividends, it created frustration, but those issues have now largely been resolved,” he said.
“There’s also a natural evolution happening – local companies are becoming highly productive and cost-efficient, giving run-of-the-mill to global players.
“This is the fourth major factor – the rise in quality and efficiency of local industries. Just like the old perception about ‘Made in China’ has changed, our local companies and conglomerates are now evolving into world-class entities,” he said.
Separately, Aurangzeb on Thursday reaffirmed the government’s commitment to strengthening institutional coordination, enhancing transport safety standards and supporting initiatives that protect lives and reduce long-term social and fiscal costs.
He stated this while talking to UN Secretary-General’s Special Envoy for Road Safety Jean Todt, who called on the minister. Mr. Todt is currently visiting Pakistan to attend the Regional Transport Ministers’ Conference being held in Islamabad, says a press release.
During the meeting, Todt briefed the finance minister on the global and regional dimensions of road safety, underlining the heavy human and economic costs of road accidents, which claim over a million lives annually worldwide and cause significant GDP losses, particularly in developing countries.
He stressed that investing in safer roads, vehicles and mobility systems is not only a public health imperative but also a sound economic and climate-resilient strategy.