The Pakistan Business Council (PBC) issued a warning on Friday, stating that several multinational companies are considering relocating their back offices from Pakistan, with some having already made the move.
This concern comes in light of a report from the Dubai Chamber of Commerce, revealing that 3,968 Pakistani companies registered in Dubai between January and June 2024, making Pakistan the second-highest country on the list. This figure represents a 17% increase compared to the 3,395 firms registered during the same period in 2023.
In 2023, the Dubai Chamber of Commerce registered a total of 8,036 new Pakistani businesses.
The growing number of Dubai-based Pakistani businesses highlights a significant exodus from Pakistan, a country already facing high unemployment and slow economic growth. With hundreds of thousands of skilled and unskilled workers leaving the country, millions more are reportedly seeking opportunities abroad.
The PBC emphasized that high-speed internet connectivity is crucial for the domestic economy, warning that many multinational companies are either planning to or have already relocated their back offices due to ongoing internet disruptions caused by a firewall. These disruptions reflect a deepening lack of confidence in the government’s economic policies.
The PBC cited several factors contributing to this lack of trust, including the high cost of doing business, political instability, rising electricity costs, and worsening law and order conditions.
The council also expressed concern over the growing idle capacity in power generation, leading to unemployment, loss of exports, and tax revenue. The emerging software sector now faces a similar threat due to poor implementation of the firewall, which could cause further economic damage.
The tech industry has already raised serious concerns about the recent internet slowdowns, warning that these disruptions could cost Pakistan up to $300 million. The PBC urged authorities to reconsider the firewall’s implementation and minimize its impact on employment and exports.
The PBC also highlighted that sectors like IT, IT-enabled services, agriculture, and tourism offer valuable opportunities to help the Prime Minister achieve his export targets over the next three years. High-speed internet connectivity is essential for these sectors and the broader domestic economy.
The Overseas Investors Chamber of Commerce and Industry (OICCI) echoed these concerns, warning that frequent internet disruptions could derail Pakistan’s economic progress.
Similarly, the Pakistan Software Houses Association stated that these disruptions are more than mere inconveniences; they are a direct and aggressive threat to the industry’s viability, with financial losses potentially reaching $300 million and increasing further.
