Internet disruptions: PBC says multinational companies are leaving Pakistan

KARACHI: The Pakistan Business Council (PBC) issued a warning on Friday, highlighting that several international corporations have recently relocated their back offices out of Pakistan.

This caution follows a study by the Dubai Chamber of Commerce, which revealed that 3,968 Pakistani firms registered in Dubai between January and June 2024, making Pakistan the second-highest ranking country in this regard. This figure represents a 17% increase compared to the 3,395 businesses registered during the same period in 2023.

The growing presence of Pakistani companies in Dubai signals an increasing exodus from a country already grappling with high unemployment and sluggish economic growth. Reports suggest that millions more Pakistanis are leaving the country in search of opportunities abroad, adding to the hundreds of thousands of skilled and unskilled workers who have already departed.

“Many multinational companies (MNCs) are either planning to relocate their back offices from Pakistan or have already done so due to widespread internet disruptions caused by the implementation of a firewall,” the PBC said in a statement.

This migration underscores a deepening lack of confidence in the government’s economic policies, driven by factors such as the high cost of doing business, political instability, soaring electricity prices, and deteriorating law and order.

“As we face the consequences of idle capacity in power generation, leading to unemployment, loss of exports, and tax revenue, we must now also contend with the threat of idle capacity in the emerging software sector due to poor firewall implementation,” the PBC added.