Business
Other side of multinationals’ exit story | The Express Tribune
As some long-entrenched firms leave, new players move in, drawn by signs of economic recovery and growth
Also likely to levy income tax on companies suffering gross losses. PHOTO: NASDAQ
ISLAMABAD:
“All happy families are alike; every unhappy family is unhappy in its own way.” Leo Tolstoy
Procter & Gamble’s exit from Pakistan has reignited debate over the country’s business climate. Many view it as part of a broader trend of multinational companies leaving amid mounting economic challenges. Analysts have pointed to high corporate taxes, restrictions on profit repatriation, and a cumbersome regulatory environment as key reasons. But the story is more complex.
Over the past four years, nine multinational companies have exited or divested their operations in Pakistan. Four of these were manufacturers – three pharmaceutical firms (Pfizer, Sanofi-Aventis, and Eli Lilly) and one consumer goods company (P&G). The remaining were service-sector players such as Shell, Total, Telenor, and Uber/Careem. The pharmaceutical sector has seen the most exodus; though this is not new. Three decades ago, 48 multinational drug companies operated in Pakistan. Today, fewer than half remain. Most have gradually divested, transferring operations or product registrations to local firms that now command over two-thirds of the domestic market.
Price controls and rigid regulations have made it harder for global firms to operate profitably, while local players have grown stronger, more agile, and more competitive.
P&G’s decision appears to reflect its global priorities more than Pakistan’s domestic conditions. Its strategy now centres on manufacturing in major markets like the United States, Europe, Greater China, and India, while exiting relatively smaller markets including Nigeria, Argentina, Bangladesh, Kenya, and others in Latin America.
In the services sector, exits also reflect broader global restructuring rather than a loss of investor confidence. Shell’s sale of its Pakistan operations to Saudi-based Wafi Energy aligns with its strategy to exit retail fuel businesses in several countries. Telenor’s decision, taken in 2022, is part of a move to focus on a smaller set of core markets. Uber and Careem have yielded market share to more affordable competitors such as InDrive and Yango. As some long-entrenched firms leave, new players are moving in, drawn by signs of economic recovery and growth. China’s Challenge Group is investing $150 million in Punjab to develop a high-tech textile zone expected to generate 18,000 jobs and an estimated $100 million in apparel exports.
Consumer healthcare multinational company Haleon is expanding its Jamshoro facility, positioning Pakistan as a regional manufacturing hub and targeting a sizeable part of production for export. Belarus plans to set up a tractor manufacturing joint venture in Balochistan.
In the financial sector, the sale of First Women Bank Limited marks the first successful privatisation in two decades. Though a small transaction, the acquisition by a multibillion UAE investment holding company signals growing investor interest as it explores more opportunities in Pakistan. UAE’s Mashreq Bank is also investing $100 million, aiming to expand financial access for the unbanked and establish Pakistan as a back-office hub for its global operations.
The largest new wave of investment is expected from China as both countries resume work on the long-delayed second phase of CPEC. New investments amounting to $8.5 billion, including $1.5 billion in joint ventures, have recently been finalised, targeting key sectors such as agriculture, renewable energy, electric vehicles, healthcare, steel, and other emerging industries.
It is essential that these new investments do not repeat the old import-substitution model pursued by many existing companies. Instead, they should emulate the example of the Chinese-Pakistani joint venture, Service Long March (SLM) Tyres, which has successfully captured most of the domestic market once dominated by smuggled goods and is now exporting tyres worth $100 million annually, mostly to the United States.
The real challenge for policymakers is to identify and replicate such success stories. Pakistan hosts over 200 multinational companies that play a vital role in driving commerce and industry and contribute more than one-third of the FBR’s total tax collection. Yet, despite this significant presence, their export footprint remains negligible, even as they repatriate over $1.5 billion in profits annually.
In contrast, multinationals operating in other developing countries are far more outward-looking, focused on global markets, earning substantial foreign exchange, and contributing to export growth rather than relying primarily on domestic sales.
The recent reforms to Pakistan’s trade and tariff policies offer an opportunity to shift towards export-led growth, and multinationals can and should play a central role in that transition, as they have elsewhere.
The era of special concessions through SROs and high tariff protection is drawing to a close. Companies can no longer afford to depend on importing components at low duties, assembling them, and selling locally at high margins in a highly protected market.
To remain relevant and competitive, they must break this cycle of dependency and embrace an export-oriented strategy, one that rewards efficiency, innovation, and global competitiveness. This is precisely how the East Asian economies transformed their industrial landscapes and achieved lasting prosperity. By following similar policies, Pakistan can do the same.
The writer is a member of the steering committee overseeing the implementation of the National Tariff Policy 2025-30. He has previously served as Pakistan’s ambassador to the WTO and FAO’s representative to the United Nations
Last Updated:
Jayesh Logistics IPO: Unlisted shares of Jayesh Logistics Ltd are currently trading at Rs 127 apiece in the grey market, against the upper IPO price of Rs 122, a GMP of 4.10%.
Jayesh Logistics IPO GMP Today.
Jayesh Logistics IPO Day 1: The initial public offering (IPO) of Jayesh Logistics Ltd opened on Monday, October 27. The Rs 28.63-crore SME IPO will remain available for public subscription for three days till Wednesday, October 29. Till 10:29 am on the first day of bidding on Monday, the IPO received a 0.17x subscription, garnering bids for 2,86,000 shares as against the 16,71,000 shares on offer.
Its retail category has received a 0.20x subscription, while the NII (non-institutional investor) quota has received a 0.38x subscription.
Jayesh Logistics IPO Price & Lot Size
The price band of the IPO has been fixed in the range of Rs 116 to Rs 122 apiece. The lot size for the issue is 1,000. It means a retail investor will have to apply for a minimum of 1,000 shares (a lot) and in multiple thereof. The minimum investment required is Rs 2,44,000, on the upper price of the IPO.
Jayesh Logistics IPO GMP Today
According to market observers, unlisted shares of Jayesh Logistics Ltd are currently trading at Rs 127 apiece in the grey market, against the upper IPO price of Rs 122. It means a grey market premium (GMP) of 4.10%, indicating mild listing gains for investors as of now.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
The IPO will be listed on both the NSE Emerge on November 3.
Jayesh Logistics IPO: More Details
The IPO, which is entirely a fresh issue of 23.47 lakh shares, will close for subscription on October 29, 2025, with allotment expected on October 30. The company’s shares are proposed to be listed on the NSE SME platform on November 3, 2025.
The price band for the issue has been fixed at Rs 116-Rs 122 per share, with a lot size of 1,000 shares. The minimum investment for retail investors is Rs 2,44,000 (for two lots or 2,000 shares at the upper band), while HNIs are required to apply for a minimum of three lots (3,000 shares), amounting to Rs 3,66,000.
Indcap Advisors Pvt Ltd is the book-running lead manager, Kfin Technologies Ltd. serves as the registrar, and Giriraj Stock Broking Pvt Ltd is the market maker for the issue.
Financially, the company reported a revenue jump of 27%, while profit after tax (PAT) surged 128% between FY24 and FY25, reflecting improved operational performance.
Founded in May 2011, Jayesh Logistics Limited is a full-service logistics solutions provider with a strong presence in cross-border cargo movements across the Indo-Nepal Corridor and the Nepal hinterland.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 27, 2025, 10:42 IST
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Business
Which Central Govt Employees Are Eligible For Increased Gratuity Of Rs 25 Lakh? Govt Issues Clarification
The Department of Pension & Pensioners’ Welfare under Ministry of Personnel, PG & Pensions has issued clarification regarding coverage of offices for payment of gratuity to the Central Government Servant.
The Department of Pension and Pensioners’ Welfare (DoPPW) had issued OM on 30 May 2024 enhancing the maximum limit of the gratuity from Rs 20 lakhs to Rs 25 lakhs to the central government civilian employees covered under Central Civil Services (Pension) Rules, 2021 and the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.
DoPPW said that it keeps receiving references/RTI applications etc seeking clarification whether the above referred OM/payment of gratuity under CCS (Pension) Rules is applicable on societies, banks, ports trusts, RBI, PSU, autonomous bodies, Universities State Governments etc and if not under which rules these organisations are governed.
“It is stated that Department of Pension & Pensioners’ Welfare (DoPPW) is the nodal Department for formulation of policies relating to pension and other retirement benefits of Central Government civil employees covered under the Central Civil Services (Pension) Rules, 2021 and Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. These rules are not applicable on types of organisations as mentioned in para 2 above. It is further stated that any query on the subject including one i.e. under which rules such organisations are governed should be addressed to the concerned organisation / concerned administrative Ministry/Department.”
The OM clarified that enhanced gratuity does not apply to societies, banks, ports trusts, RBI, PSU, autonomous bodies, Universities State Governments etc and if not under which rules these organisations are governed. It implied that only those central government civil servants who fall under the Central Civil Services (Pension) Rules, 2021 or the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021 will receive a maximum gratuity of up to Rs 25 lakh.
Business
Stocks to buy: What’s the outlook for Nifty for the week starting October 27? Check list of top stock recommendations – The Times of India
Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, the top stock picks for this week are Cummins India, and Blue Star. Here’s his view on Nifty, Bank Nifty for the Diwali week starting October 27, 2025:Nifty View:The benchmark index Nifty has delivered a strong performance through October, advancing over 1500 points from its low of 24588 in just 15 trading sessions. This sharp upward move was driven by festive optimism, steady domestic inflows, and supportive global cues, reflecting a robust bullish sentiment.During the Diwali week, the index approached its all-time high, raising expectations of a breakout. However, it failed to sustain the momentum and encountered profit booking, indicating a shift in investor sentiment following the rapid rise.This slowdown has led to the emergence of a Shooting Star-like candlestick pattern on the weekly chart, which typically signals a potential reversal or exhaustion in the prevailing trend. The pattern suggests that while buyers attempted to push prices higher, they faced resistance. A confirmation candle, usually a bearish follow-through, will be essential to validate this reversal signal.From a momentum perspective, the daily RSI had reached a high of 72.69, indicating overbought conditions. It has since declined to 67.19 and is currently trending lower, reinforcing the cautious outlook.At the same time, market participants are closely monitoring developments around the India-US trade deal, which could serve as a key trigger for the next directional move. A favourable outcome may revive bullish sentiment and fuel further upside.In terms of technical levels, the 25550–25500 zone is expected to act as a strong support, as it coincides with the 13-day EMA and the 38.2% Fibonacci retracement of the recent rally from 24588 to 26104. On the upside, the 25950–26000 zone remains a critical resistance. A sustained move above 26000 could pave the way for a rally towards 26300.With technical indicators cooling off and macro factors in play, the coming sessions will be crucial in determining whether this is a temporary pause or the beginning of a broader correction.Bank Nifty ViewThe banking index Bank Nifty registered a new all-time high on Thursday, reflecting strong sectoral momentum and investor confidence. However, the index was unable to hold above the critical 58500 mark, and soon after, it experienced profit booking, indicating a temporary shift in sentiment following the sharp rally.This pullback has resulted in the formation of a Shooting Star candlestick pattern on the weekly chart, a technical signal that often points to trend exhaustion. The pattern suggests that while buyers attempted to push prices higher, they encountered resistance, leading to a potential pause or reversal in the ongoing uptrend.Adding to the cautious outlook, the daily RSI has also weakened. After reaching a high of 76, the RSI has now given a bearish crossover and is trending lower, typically indicating a cooling-off in momentum and the possibility of a consolidation phase.With Bank Nifty at a crucial juncture, market participants will be closely watching for confirmation signals in the coming sessions. Whether this is a brief pause or the beginning of a broader correction will depend on price action over the next few trading days.From a technical standpoint, the 57000–56900 zone is expected to act as key support, as it aligns with the 38.2% Fibonacci retracement level of the recent rally. On the upside, the 58200–58300 zone remains a critical resistance area. A sustained move above 58300 could pave the way for a sharp rally towards 59000, and potentially 59500, in the short term.Stock recommendations:Cummins IndiaCUMMINSIND had been consolidating in a 3830–4030 range since early October, forming a series of small-bodied candles that indicated indecision among traders. The stock broke out of this range on Thursday, and the move was followed by strong follow-through buying in Friday’s session, confirming bullish momentum. With Friday’s close, Cummins India has moved above the upper band of the Bollinger Bands, reflecting heightened buying strength. Moreover, the MACD has given a bullish crossover above its signal line, accompanied by rising histogram bars, which indicates increasing positive momentum and suggests the potential for further upside in the near term. Hence, we recommend to accumulate the stock in the zone of 4190-4170 with a stoploss of 4050. On the upside, it is likely to test the level of 4500 in the short term.Blue StarBLUESTARCO recently broke out of a downward sloping trendline, signalling a shift in momentum in favour of the bulls. After the breakout, the stock consolidated within a tight 1940–1990 range for four trading sessions, digesting gains before resuming its upward move. On Friday, it broke above this range with strong follow-through buying backed by healthy volumes, reaffirming bullish sentiment. The stock also trades above all key moving averages, indicating strength in the broader trend. Meanwhile, the RSI, which had flattened in the last few sessions, has started turning higher, and the ADX is rising, suggesting that momentum is building up for a further upside move. Hence, we recommend to accumulate the stock in the zone of 2020-2000 with a stoploss of 1940. On the upside, it is likely to test the level of 2160 in the short term.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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