ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday acknowledged that high taxation energy prices and financing costs have compelled several multinational companies to exit Pakistan but maintained that investor confidence remains resilient as new domestic and foreign players continue to enter the market. He made these remarks while addressing the Pakistan Policy Dialogue organised by PRAC in collaboration with Corporate Pakistan Group and Nutshell Group.

Addressing concerns over the multinational exodus the finance minister said the issue must be accepted with honesty as steep taxes and energy costs have posed real challenges for businesses. However he added that outdated business models can no longer survive in a rapidly evolving global economy. Companies must adapt to modern realities to remain competitive in Pakistan.

Citing Nestle and Unilever as successful examples Aurangzeb said firms that focus on local sourcing and exports are able to sustain margins and expand operations. He revealed that Pakistan attracted 20 new foreign investors over the past 18 months including Google Aramco Wafi Energy and Turkish Petroleum reflecting continued market interest.

Highlighting reforms he said the government is transforming the Federal Board of Revenue strengthening compliance enforcement and digitisation. By June all government payments will move through digital channels. He also announced that regulatory customs and additional duties will be phased out over five years to lower raw material costs and support export led growth.

Aurangzeb said remittances are expected to exceed 41 billion dollars this year while inefficiencies in state owned enterprises are costing nearly one trillion rupees annually. He said recent savings of 850 billion rupees in debt servicing reflect improved fiscal management. Debt servicing remains the largest expenditure but reforms are under way to modernise debt management.

Other speakers stressed political stability export competitiveness and equitable reforms. Planning Minister Ahsan Iqbal said exports are vital for national security while Climate Change Minister Musadik Malik criticised elite capture and unequal subsidies. Experts agreed that sustainable growth requires productivity driven policies inclusion and a shift toward services and technology led exports.