ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday acknowledged that high taxation, expensive energy and financing costs have compelled some companies to exit Pakistan, while stressing that the government is fully aware of the economic challenges confronting businesses.
Speaking at the Pakistan Policy Dialogue in Islamabad, the finance minister said that although some firms have left the country, new foreign investment is also flowing in. He revealed that around 20 foreign investors, including Google, Aramco, Wafi Energy and Turkish Petroleum, have entered the Pakistani market over the past 18 months.
“There are firms which are also leaving — that is true,” Aurangzeb said. “If taxation is high, energy costs are high, or financing costs continue to rise, these remain real issues for businesses.”
He described high taxes and energy prices as persistent challenges for the private sector, adding that the government has initiated structural and fiscal reforms to reduce pressure on the national exchequer and restore economic stability.
The finance minister also urged businesses to reassess their business models, noting that long-standing practices may no longer be viable in the evolving global economy.
“It takes two to tango — what the government has to do and what the private sector has to do,” he said. “If businesses remain wedged into outdated models of the past 50 years, they will not work in the new world order.”
Aurangzeb said structural reforms were underway across multiple sectors, including the ongoing transformation of the Federal Board of Revenue (FBR). He emphasised that stronger compliance and enforcement mechanisms were critical to ensuring effective implementation of tax laws and creating a more sustainable business environment.
