Pakistan's economic trajectory continues to raise alarm as signs of corporate retreat and business insecurity multiply. The decision by P&G to exit Pakistan and Philip Morris to delist from the PSX reflects a deepening loss of confidence in the country's governance and economic management. When multinationals that have long operated in volatile conditions begin to scale down or withdraw, it indicates that the business climate has become untenable even for the most resilient investors.
This decline in confidence coincides with a disturbing resurgence of street-level criminality. The Karachi Chamber of Commerce and Industry has issued a high-alert advisory following a rise in extortion threats to members of the business community. Reports of traders receiving bullets alongside extortion slips have rekindled memories of a darker period when Karachi's commerce operated under constant threat. The sense of fear now gripping the city's traders threatens to undo years of effort to stabilise its economic core.
Implications of this extend beyond Karachi. Investors, both local and foreign, are increasingly deterred by a mix of insecurity, arbitrary taxation and policy inconsistency. An environment where law enforcement falters and regulatory decisions shift without warning cannot sustain investment or growth. The slow exodus of major firms is a shaking reminder that stability and rule of law are the true prerequisites for economic revival.
Responsibility rests squarely with the government. Reassuring investors requires more than administrative fixes. Law enforcement agencies must decisively dismantle extortion rackets and restore public confidence in Karachi's security. Restoring confidence will take time, but the first step is visible action. Policymakers must actively engage with the private sector to understand their challenges and demonstrate that Pakistan remains committed to protecting legitimate enterprise. The state must be seen unmistakably as the guarantor of security and stability, not a bystander in its erosion.
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