Pakistan has been battling the biggest economic crisis in its history since last year and despite getting help from the International Monetary Fund (IMF) and friendly countries, the situation remains the same. Now a new crisis has arisen in the country, the warning of which has been issued by the Pakistan Business Council (PBC) itself. PBC has warned that due to the new problem, many multinational companies are now closing their back offices in Pakistan and looking for a place in other countries. Let’s know what is the whole matter?
Companies getting registered in Dubai!
According to a report by Pakistani media Dawn, many big and leading companies from the country are planning to transfer their back offices to other countries and many companies have done so recently. This alert from PBC comes after a report by the Dubai Chamber of Commerce, which states that 3,968 Pakistani companies have been registered in Dubai between January and June 2024 and this figure is 17 percent more than the 3,395 firms registered during the same period last year in 2023.
Citing these figures, the report says that this surge in the number of Pakistani businesses arriving in Dubai reflects the growing migration from a country that is already going through a major economic crisis and where there is record unemployment and sluggish growth. Due to various reasons ranging from inflation, not only companies but also millions of people are reportedly looking for opportunities for themselves abroad.
PBC revealed the big reason
Along with issuing this warning, the Pakistan Business Council has also given a big and new reason for multinational companies leaving the country in its statement. PBC has said that due to the alleged installation of firewalls, there are large-scale disruptions in internet service across the country, which is creating this situation. According to Dawn’s report, Pakistan’s tech sector had also recently expressed serious concern over the internet crisis.
Damage estimated at $300 million
The alert issued by the Pakistan Tech sector said that these disruptions in internet services could cause losses of up to $300 million to Pakistan. Raising the issue, the PBC has demanded the concerned authorities to take appropriate steps and get the right firewall in place, so that the impact on both employment and exports is minimal. The Council has said that high-speed internet connectivity is also very important for the domestic economy (Pakistan Domestic Economy).
A big threat to economic growth
Pointing out the seriousness of the issue, the Overseas Investors Chamber of Commerce and Industry (OICCI) along with the Pakistan Business Council has also warned that frequent internet outages in the country could hamper the country’s economic progress. According to the Pakistan Software House Association, these outages are no longer just inconveniences but are akin to an aggressive attack on businesses, which is expected to cause huge financial losses.
