Some multinationals exit, others enter as Pakistan clears $4bn debt: FinMin

• 80% of flood damage occurred in Punjab: FinMin.
• Income tax relief extended to lower income earners: Aurangzeb.
• Minister says wheat deregulation policy expected in 2026.

Finance Minister Muhammad Aurangzeb said on Wednesday that while some multinational companies have pulled out of Pakistan, several new investors are entering the market, reflecting renewed investor confidence amid signs of macroeconomic stability.

Speaking of Geo News on the program “Capital Talk”, the finance minister said that the withdrawal of some foreign companies should not be seen as a sign of distress.

“Such decisions are often part of global corporate strategies … if some companies leave, new ones come, especially in the energy and digital services sectors,” he noted.

Aurangzeb admitted that there are still some challenges for foreign investors, such as delays in repatriation of dividends, but Pakistan has made significant progress. “As economic stability has returned, we’ve cleared $4 billion in backlogs over the past two years,” he said.

The minister acknowledged that climate change is affecting Pakistan’s economy, noting that the frequency of floods and smog incidents has increased.

“Before the recent floods, GDP growth was projected at 4.2%, but at least 0.4 to 0.5 percentage points will now decline due to flood-related losses, 80% of which occurred in Punjab’s agriculture sector, particularly rice and cotton,” he said.

Aurangzeb said the government has focused on self-reliance, adding that relief and rescue operations are being carried out from domestic resources.

“We stand on our feet today. Reconstruction may require global support, but rescue and relief is managed entirely through local means,” he said.

He said Prime Minister Shehbaz Sharif has instructed Climate Change Minister Musadik Malik to prepare a 300-day climate resilience plan, noting that the next monsoon may arrive two weeks earlier than usual.

Highlighting the fiscal progress, Aurangzeb said tax collection from wholesalers and retailers increased by 100% last year, with additional recovery from the sugar, cement and tobacco industries.

He added that income tax relief was extended to the lower and middle income classes, with plans to extend it to other segments as well.

He also confirmed that the government is moving to deregulate wheat and sugar prices, with a comprehensive wheat deregulation policy expected in 2026 that will end intra-provincial movement restrictions.

He added that the World Bank appreciated Pakistan’s tax reform presentation and Egypt’s finance minister offered to send a team for knowledge sharing.