Multinational companies plan to move to Dubai due to 'internet disruptions' in Pakistan

The Pakistan Business Council (PBC) has sounded the alarm that several multinational companies are planning to relocate their offices from Pakistan due to the continuous internet disruptions and economic turmoil in the country.

The Dubai Chamber of Commerce stated that 3,986 Pakistani companies were registered in the Gulf country between January and June 2024.

The figures represent a 17% increase compared to the same period in 2023.

"We are struggling with the cost of unused capacity in power generation, resulting in unemployment and loss of exports and tax revenue," PCB said in a statement.

The council attributed the exodus to a lack of confidence in the government's economic policies to factors such as the high cost of doing business, political uncertainty, rising electricity prices, and deteriorating law and order situation.

The council said that recent reports of the government's plan to install firewalls have increased the foreign companies' fear of losing business in the country.

The Overseas Investors Chamber of Commerce and Industry (OICCI) also warned that continued internet disruptions in Pakistan could derail the country's economic growth.

The Pakistan Software Houses Association said in a statement, "These disruptions are not mere inconveniences but will have devastating effects on the industry, with financial losses reaching up to $300 million."