ISLAMABAD: Pakistan is emerging as a key destination for international business ventures, particularly in sectors like energy, logistics, information technology (IT), agriculture, mining, and digital infrastructure. Over the past three years, 79 new foreign companies have established operations in the country, with total investments reaching Rs40.7 billion across strategic sectors.
Recent statistics from the Securities and Exchange Commission of Pakistan (SECP) reveal that currently, there are over 1,157 foreign entities operating within the country, representing a significant increase compared to three years ago when only about 393 companies were registered. Notably, while 19 firms have exited the market in the past three years—three due to strategic restructurings and six by choice—another set of 31 new entrants has joined Pakistan’s corporate landscape in 2023.
Over recent years, foreign participation through equity transactions has further diversified. A total of 61 shareholding changes involving both foreign companies and local entities have taken place during this period. Among them, 29 deals involved transfers to other foreign firms; four went to individual foreign investors, while 20 were acquired by domestic individuals or corporate entities. Many such transactions are linked to global portfolio adjustments among multinational corporations.
A standout example of such diversification is Saudi Arabia’s Wafi Energy acquiring Shell Pakistan’s operations as part of a broader restructuring strategy for the global conglomerate. Similarly, Dubai-based PTA Global Holdings gained a controlling stake in Lotte Chemical Pakistan through an agreement with TotalEnergies. Swiss corporation Gunvor Group joined forces with Total Parco Limited to acquire stakes in TotalEnergies Pakistan. Saudi Aramco also invested 40 percent of equity in Gas & Oil Pakistan Limited.
In the logistics sector, DP World expanded its presence by entering into a joint venture with the National Logistics Corporation (NLC), thereby reinforcing Pakistan’s transportation and supply chain infrastructure.
Digital sectors have seen significant activity as well. Bazaar Technologies purchased Wemsol, while Saudi Arabia’s Waqub Data Company secured an 80 percent stake in Pakistani tech firm Woot Tech.
In telecommunications, PTCL acquired Telenor Pakistan’s operations, a move aimed at strengthening the telecom sector on a regional scale.
In the healthcare industry, pharmaceutical giants like Pfizer and Sanofi have made strategic shifts. Pfizer transferred its Karachi manufacturing plant to Lucky Core Industries, ensuring local production continuity. In contrast, Sanofi divested its majority stake in Hoechst Pakistan Limited after selling to a consortium of local investors.
Agricultural investments are also on the rise. Italy’s Euricom S.p.A. secured a 50 percent stake in Fatima Euricom Rice Mills, while Netherlands-based Berkeley Square Holding B.V. acquired a 50 percent share in Ogilvy & Mather Pakistan and its subsidiaries Mindshare Pakistan and Soho Square Pakistan.
Mining and minerals investment have also seen substantial growth, with major players like Barrick Gold, Strategic Metals US, and Nova Minerals US making significant moves into the sector.
The emergence of electric vehicles has opened up new opportunities for firms in Pakistan. Companies such as BYD, Chery Automobile, and NWTN Motors are exploring local markets to capitalize on this burgeoning industry.
In IT and telecommunications, major global players have expanded their presence. Google, Samsung, Relational, IceWarp, Pro Device, and Russoft Synercon among others have invested in various Pakistani firms and technology initiatives.
The construction sector is also seeing increased interest. Abu Dhabi Ports has entered into partnerships with Mota Engil Group to boost infrastructure development in Pakistan.
Existing foreign investors are expanding their interests as well. Mashreq Bank, backed by the UAE, has launched a digital bank designed for Pakistan’s market. Kuwait’s Raqami Digital Bank plans to invest $100 million over the next fiscal year, further solidifying its commitment to the country.
Recent acquisitions include e& Telecom acquiring Telenor Pakistan’s operations from PTCL, which now holds 23.4 percent of e& Telecom through a subsidiary. VEON Group has increased its investment in Mobilink Bank, and The Engro Jazz consortium is pledging more than $550 million toward digital infrastructure expansion.
Significant foreign capital inflows have also been reported. An ambitious $1 billion commitment from the UAE government is set to catalyze further industrial cooperation, complemented by a $160 million cement capacity expansion project led by the Mansha Group and the entry of Nippon Express into TCS’s operations.
Additionally, renewed investments in the mining and minerals sector are expected. The China-Pakistan Economic Corridor (CPEC) is propelling such developments, with 24 new business-to-business agreements totalling more than $1.5 billion across various sectors like agriculture, renewable energy, IT, and industrial relocation under its second phase.
Overall, these developments underscore a vibrant ecosystem of foreign capital in Pakistan—spanning from traditional manufacturing hubs to emerging digital and technology-focused industries.”