ISLAMABAD: The Federal Board of Revenue (FBR) has faced criticism for fostering a challenging environment for businesses in Pakistan, a factor cited in the exit or scaling back of operations by several multinational companies (MNCs) and local firms. The concerns were raised during a National Assembly Standing Committee on Commerce meeting chaired by Jawed Hanif Khan.
Shaista Pervaiz Malik, a Member of the National Assembly, expressed strong discontent over what she described as “harassment” by the FBR, stating that such practices were compelling companies to leave the country and causing difficulties for foreign firms in repatriating profits.
A representative of the Board of Investment (BoI) highlighted that Pakistan maintains an open investment policy with minimal restrictions for foreign investors. Key sectors remain open unless restricted due to national security or public safety, while some sectors, including banking, airlines, and agriculture, have specific foreign equity limits.
The BoI noted that recent exits or downsizing of MNCs should be seen in a global and sectoral context, with many companies restructuring globally due to inflation, high interest rates, supply-chain changes, and shareholder priorities. However, domestic structural issues—such as regulatory complexity, macroeconomic volatility, delays in profit repatriation, and high business costs—have also influenced investment decisions.
The discussion underscored the need for improved regulatory efficiency and facilitation to retain and attract both local and foreign investment.
