New Delhi, Oct 26 (NationPress) As India continues to draw unprecedented levels of foreign investment and corporate growth, Pakistan has seen a gradual withdrawal of global companies across various sectors. This disparity not only mirrors macroeconomic patterns but also the fundamental business environment, regulatory landscapes, and institutional frameworks that influence investor trust and long-term strategic choices, as highlighted in an article on Japan Forward, a platform of the Sankei Shimbun.

Despite being the fifth-most populous nation globally, Pakistan has struggled to maintain the interest of significant international corporations. The recent decision by Procter & Gamble (P&G) to cease its manufacturing and commercial activities in Pakistan symbolizes broader complications, according to the article by Professor Pema Gyalpo.

P&G's withdrawal follows similar exits by Shell, Pfizer, TotalEnergies, Telenor, and Microsoft. Pfizer divested its Karachi manufacturing facility to Lucky Core Industries in 2024, marking the end of local production. Shell departed in 2023 after extensive strategic re-evaluation, selling its share to Saudi Arabia's Wafi Energy.

TotalEnergies sold its holdings in Total PARCO Pakistan Limited to Singapore's Gunvor Group. Telenor, after a failed merger effort, agreed to transfer its operations in Pakistan to the Pakistan Telecommunication Company Limited, although regulatory approvals are pending. Microsoft quietly terminated its operations in Pakistan in July 2025, after 25 years.

These departures span various fields, including consumer goods, energy, pharmaceuticals, telecommunications, and technology, indicating systemic issues rather than those related to specific sectors. Industry leaders cite high electricity costs, regulatory unpredictability, and infrastructure challenges as major deterrents.

Saad Amanullah Khan, the former CEO of Gillette Pakistan, emphasized that these exits should signal a wake-up call for policymakers. The deficiencies in logistics, recurrent power outages, and prolonged approval processes have made it increasingly difficult for multinational corporations to operate efficiently.

The pharmaceutical sector exemplifies these struggles. Global drug companies are confronted with delays in price adjustment approvals and regulatory obstacles from the Drug Regulatory Authority of Pakistan (DRAP). Inconsistent enforcement, lack of transparency, and outdated promotional standards have stifled innovation and investment.

These difficulties are exacerbated by macroeconomic volatility, currency depreciation, inflation, and restricted access to foreign currency, which diminish profitability and complicate financial planning.

The article emphasizes that, conversely, India has positioned itself as a favored location for global investment. In FY24–25 alone, India attracted $81 billion in foreign investments, fueled by robust economic growth, a rapidly growing middle class, and a business-friendly policy framework. The government's proactive measures, such as 'Make in India', the expansion of digital infrastructure, and tax reforms, have fostered a supportive environment for corporate growth.

Major international firms are expanding their presence in India. Airbus is making investments across manufacturing, engineering, and training in alignment with national priorities. Microsoft has committed $3 billion to enhance its cloud and AI infrastructure, with plans for new data centers to meet rising demand.

Apple has significantly ramped up iPhone production, assembling devices worth over $22 billion in April 2025 alone. Amazon, already one of India's largest employers, is investing an additional $8.2 billion in cloud infrastructure in Maharashtra. NTT DATA has launched its most extensive data center campus in India, while VinFast LLC is developing a $2 billion EV manufacturing facility in Tamil Nadu.

The pharmaceutical industry in India is also flourishing. Eli Lilly is investing over $1 billion in contract manufacturing and setting up a global capability center in Hyderabad. The company is positioning India as a critical hub for innovation and production, including the rollout of its experimental weight loss drug. These initiatives underscore confidence in India's regulatory environment, skilled workforce, and infrastructure readiness.