Finance Minister Muhammad Aurangzeb has acknowledged that some companies are leaving Pakistan due to high taxes, expensive energy, and rising financing costs, while insisting that the government is fully aware of these economic challenges and is working to address them.
Speaking at the Pakistan Policy Dialogue in Islamabad, the finance minister said it is true that certain firms have exited the market. He noted that taxation levels and energy prices remain serious obstacles for businesses, particularly for companies that have not adjusted their operating models to changing global conditions.
Despite these exits, Aurangzeb highlighted a positive trend, stating that 20 new foreign investors have entered Pakistan in the past 18 months. These include major international names such as Google, Aramco, Wafi Energy, and Turkish Petroleum, reflecting continued interest in the country’s market.
The finance minister stressed that success now depends on shared responsibility between the government and the private sector. He explained that companies relying on outdated business models face difficulties, while those that adapt by shifting to local sourcing have managed to protect their margins and expand exports.
Aurangzeb said firms that made these adjustments have remained competitive and profitable in Pakistan. Others, he added, need to reassess their strategies rather than relying solely on policy support.
He also confirmed that structural reforms are underway, including the ongoing transformation of the Federal Board of Revenue. Strengthening tax compliance and enforcement, he said, is essential for economic stability and long-term growth.
