New Delhi, Dec 11 (NationPress) The Qatar-based Al Thani Group is the most recent foreign entity to exit Pakistan amidst the ongoing economic instability and political unrest in the nation. Al Thani has announced plans to divest 49 percent of its interest in the Port Qasim Power Project, a significant component of the China-Pakistan Economic Corridor (CPEC). This decision follows outstanding receivables that have exceeded PKR 288 million. The company has expressed frustration over the delayed payments from the Pakistan government and cautioned about a potential operational halt if dues remain unpaid, as reported by the UK-based Asian Lite newspaper.

Imtiaz Gul, director of the Centre for Research and Security Studies in Islamabad, stated that Al Thani's departure highlights Pakistan's deteriorating reputation for unfulfilled contracts and unpaid debts. He noted, “It’s no surprise that foreign direct investment has plummeted to just $26 million by September this year.” He added that the exit of the Qatari group illustrates a broken system that is suffocating under the profound apathy and incompetence of a power-obsessed elite resistant to genuine reform.

This exit is part of a larger trend, with numerous major corporations from various sectors withdrawing from Pakistan. The country’s financial vulnerabilities, along with the devaluation of the PKR and rising dues, led Shell Petroleum to exit. A representative from Shell Pakistan remarked, “To enhance and simplify its portfolio, Shell Petroleum Company Ltd... has begun a sales process to offload its 77.42 percent share in Shell Pakistan Ltd.”

Mustafa Pasha, Chief Investment Officer at Lakson Investments, noted that the economic slowdown has made it challenging for Shell’s operations. “The overall sentiment is very negative, indicating that businesses are losing confidence and shutting down in Pakistan,” he stated. “The environment for oil management firms in Pakistan is exceptionally challenging, with a regulatory framework that complicates operations.”

This trend continued with the French energy giant TotalEnergies, which has signaled that Pakistan is no longer a key market for them. “TotalEnergies’ exit is concerning,” remarked Adnan Sheikh, Assistant Vice President at Pak Kuwait Investment Company.

The swift exit of these multinational corporations raises alarms as the nation grapples with both economic and political crises. Business analyst Khurram Husain commented, “Multinationals are making their choices clear by exiting. The interplay of policy uncertainty and macroeconomic instability is driving them away.”

Dr. Sakariya Kareem’s article further emphasizes that the government faces criticism for its inability to stabilize the economy and implement structural reforms. Ahsan Iqbal, a senior figure in the Pakistan Muslim League-Nawaz, noted that TotalEnergies’ departure serves as a warning, indicating that Pakistan is not a secure destination for long-term investments.

Additionally, Norwegian telecom giant Telenor has exited Pakistan by divesting its entire stake due to unfavorable economic conditions and regulatory challenges. Telenor Asia head Jon Omund Revhaug stated, “Pakistan presents some of the lowest average revenue per user (ARPU) rates globally, paired with high spectrum costs and low service profitability.”

Six pharmaceutical multinationals, including Bayer, ICI, Sanofi-Aventis, Pfizer, Fresenius Kabi, and Novartis, have also left Pakistan in the last three years, reflecting broader strategic shifts among global firms. Ayesha T. Haq, Executive Director of the Pharma Bureau, stated, “No company can sustain losses indefinitely. This situation undermines investor confidence, deterring companies from introducing new therapies into the Pakistani market.”

Strict price regulations, regulatory burdens, currency risks, and economic instability have all contributed to the departure of these companies. Even consumer goods giant Procter & Gamble ceased operations in Pakistan due to soaring power costs, inadequate infrastructure, and regulatory challenges. “I hope these exits awaken the rulers to the pressing issues at hand,” expressed Saad Amanullah Khan, former CEO of Gillette Pakistan.

Further, cab aggregator Uber and tech giant Microsoft have scaled back their operations in Pakistan over recent years. This widespread disinvestment raises concerns about foreign investment in the country, according to Ikram Ul Haq, an economist and taxation lawyer. He remarked, “The negative perception of the country and the uncertain future are compelling even local investors to seek opportunities abroad. With the departure of esteemed multinationals, hopes for a breakthrough in foreign direct investment are dwindling.”