Government Urged to Avert Growing Exit of Multinationals

The government has been urged to introduce an investment and business protection policy to stop Multinational Companies (MNCs) from leaving Pakistan. Over 200 MNCs contribute more than one third of the Federal Board of Revenue’s (FBR) tax collection, but many are unhappy with high taxes, profit repatriation restrictions and regulatory hurdles. Nine MNCs have already exited in recent years, especially from the pharmaceutical sector. Experts warn that this trend threatens jobs, foreign investment and Pakistan’s global credibility. They recommend a simpler and export focused tax system, including reviewing Federal Excise Duty (FED) and ending multiple indirect taxes. The government says reforms are underway to improve the business environment and protect remaining foreign investors.