Super-rich companies exit Pakistan, divest billions in assets

ISLAMABAD: Over the past two years, nine multi-billion, super-rich companies have divested their assets in Pakistan, signaling a significant shift in the country’s economic landscape.

The exits span various sectors, reflecting broader concerns and strategic recalibrations by global corporations.

Pharmaceutical giant Pfizer (USA) sold its manufacturing operations in Pakistan to the Lucky Group in May 2024. This move marks a substantial withdrawal from a market where Pfizer had a longstanding presence. Energy behemoth Shell (Netherlands) divested its retail business and lubricants plant to the Wafi Energy Group. This sale underscores Shell’s strategic shift as it recalibrates its global portfolio.

Ride-hailing service Uber (USA) discontinued its operations in Pakistan, including its subsidiary Careem’s food delivery business. This cessation highlights challenges in the local market, including regulatory hurdles and competitive pressures.

French oil major TotalEnergies has agreed to sell its 50 percent stake in oil marketing company Total PARCO Pakistan Limited to global commodities trader Gunvor Group, the company said in a statement on Tuesday. Eli Lilly (USA) ceased its manufacturing operations in Pakistan in November 2022. The company’s withdrawal points to strategic realignments and possibly concerns over local market conditions. Sanofi (France) sold its 52.87 percent shareholding in Sanofi-Aventis Pakistan Limited to an investor consortium led by Packages Limited in April 2023. This divestment reflects Sanofi’s broader global restructuring efforts.

Telecommunications provider Telenor (Norway) sold its operations to Ufone/PTCL in December 2023. The move signifies a strategic exit from a highly competitive market where operational challenges have persisted. Viatris (USA) sold a portfolio of certain pharmaceutical brands to AGP Limited (AGP) in April 2023, marking another significant divestment in the healthcare sector. Lotte Chemical (South Korea) sold its assets in Pakistan to Lucky Core Industries in May 2023. This transaction highlights the reshuffling within the chemical industry amid global economic pressures.

These exits represent a substantial outflow of foreign investment, with companies capable of further investments or expansions opting to withdraw. The divestments raise questions about Pakistan’s investment climate and economic policies, posing challenges for the government to attract and retain foreign direct investment.

The cumulative impact of these withdrawals could be far-reaching, affecting employment, technological advancements and economic growth.