Whereas India continues to draw report ranges of international funding and company enlargement, Pakistan has witnessed a gentle retreat of worldwide corporations throughout sectors. This distinction displays not solely macroeconomic developments but additionally the underlying enterprise tradition, regulatory frameworks, and institutional capability that form investor confidence and long-term strategic selections, in keeping with an article in Japan Ahead, an internet site of the Sankei Shimbun newspaper.
Pakistan, regardless of being the fifth-most populous nation on this planet, has struggled to retain the curiosity of main worldwide corporations. The latest announcement by Procter & Gamble (P&G) to close down its manufacturing and business operations in Pakistan is emblematic of broader challenges, the article by Professor Pema Gyalpo stated.
The P&G’s exit follows related strikes by Shell, Pfizer, TotalEnergies, Telenor, and Microsoft.
Pfizer offered its Karachi manufacturing plant to Fortunate Core Industries in 2024, ending native manufacturing. Shell exited in 2023 after years of strategic reconsideration, promoting its stake to Saudi Arabia’s Wafi Power.
TotalEnergies divested its share in Complete PARCO Pakistan Restricted to Singapore-based Gunvor Group.
Telenor, after a failed merger try, agreed to promote its Pakistan operations to Pakistan Telecommunication Firm Restricted, although regulatory approvals have delayed the transaction. Microsoft, after 25 years in Pakistan, quietly shut down its operations in July 2025.
These exits span various sectors, client items, power, prescribed drugs, telecommunications, and expertise, suggesting systemic relatively than sector-specific points. Business leaders have pointed to excessive energy prices, regulatory uncertainty, and infrastructure bottlenecks as key deterrents.
Saad Amanullah Khan, former CEO of Gillette Pakistan, famous that such departures ought to function a wake-up name for policymakers. The shortage of dependable logistics, frequent energy outages, and delays in approvals have made it more and more tough for MNCs to function effectively.
The pharmaceutical sector gives a very stark instance. Multinational drug corporations have confronted extended delays in worth change approvals and regulatory hurdles from the Drug Regulatory Authority of Pakistan (DRAP). Inconsistent enforcement, lack of transparency, and outdated promotional requirements have discouraged innovation and funding.
These challenges are compounded by macroeconomic instability, forex depreciation, inflation, and restricted entry to international change, which erode profitability and complicate monetary planning.
The article highlights that, in distinction, India has emerged as a most popular vacation spot for international funding. In FY24–25 alone, India attracted $81 billion in international investments, pushed by regular financial progress, a quickly increasing center class, and a business-friendly coverage surroundings. The federal government’s proactive initiatives, reminiscent of ‘Make in India’, digital infrastructure enlargement, and tax reforms, have created a conducive local weather for company enlargement.
Main international corporations are deepening their footprint in India. Airbus is investing throughout manufacturing, engineering, and coaching, aligning with nationwide priorities. Microsoft has dedicated $3 billion to broaden its cloud and AI infrastructure, with new knowledge centres deliberate to help rising demand.
Apple has considerably elevated iPhone manufacturing, assembling over $22 billion price of units in April 2025 alone. Amazon, already one in every of India’s largest employers, is investing a further $8.2 billion in cloud infrastructure in Maharashtra. NTT DATA has launched its largest knowledge centre campus in India, whereas VinFast LLC is constructing a $2 billion EV manufacturing plant in Tamil Nadu.
The pharmaceutical sector in India can be thriving. Eli Lilly is investing over $1 billion in contract manufacturing and establishing a world functionality heart in Hyderabad. The corporate is positioning India as a key hub for innovation and manufacturing, together with the rollout of its experimental weight reduction drug.
