Manufactured panic about the foreign companies

2026-02-25 - 21:33

Asif Zaheer Gondal Is Pakistan truly facing a rush of foreign companies toward the exit? Is there really a mass withdrawal of foreign businesses from Pakistan? Is the narrative of a corporate exodus from Pakistan grounded in fact? The claim has circulated widely in recent months, often framed as evidence of economic collapse. Yet when one turns from rhetoric to verified data, a very different picture emerges. The Securities and Exchange Commission of Pakistan has categorically rejected reports of a large scale foreign business exit. According to official figures, only 19 foreign companies ceased operations between 2022 and 2025. During the same period, 79 new foreign companies were registered. These numbers alone dismantle the narrative of an exodus. If anything, they suggest continued engagement and cautious confidence in Pakistan’s corporate landscape. The much quoted figure of “125 companies leaving Pakistan” has also been clarified. This number represents cumulative cessations since 1977, not withdrawals within the past three years. Presenting it as recent data is not merely misleading. It is a deliberate distortion. Further evidence reinforces this point. In just the past month, foreign investment was recorded in 82 local companies, with capital originating from a diverse range of economies including China, the United States, the United Kingdom, Germany, Australia, Turkey, South Korea, and Spain. As of February 2026, 1,157 foreign companies remain registered with the SECP. This is not the profile of an economy abandoned by international capital. It is the profile of a market navigating challenges while retaining global linkages. What, then, explains the persistent drumbeat of negativity? Pakistan today is not only confronting economic restructuring but also facing an information war. In every sphere, attempts are made to project a bleak and collapsing image of the country. The objectives are clear: erode national morale, generate social anxiety, undermine investor confidence, and amplify hostile narratives. The selective highlighting of 19 departures while ignoring 79 new registrations exemplifies how perception can be weaponized. Unfortunately, elements within domestic political contestation have also contributed to this climate. At various moments, appeals have reportedly been made to the International Monetary Fund urging reconsideration of financial arrangements. At other times, overseas Pakistanis have been encouraged to halt remittances. Such actions, regardless of political intent, risk sending damaging signals to international markets at a time when economic stabilization requires unity and credibility. In the contemporary world, economics and national security are deeply intertwined. When a country striving for recovery is subjected to narratives that deliberately depress investor sentiment, the consequences extend beyond party politics. Responsible criticism aimed at reform and transparency is not only legitimate but necessary. Democracies thrive on debate. However, propaganda rooted in falsehood is a separate matter altogether. States have both the right and the obligation to distinguish between constructive dissent and malicious disinformation. Protecting economic credibility is not censorship. It is safeguarding national interest. Pakistan’s economic journey remains challenging. Structural reforms, fiscal discipline, and institutional strengthening are ongoing tasks. But debates about the country’s future must be anchored in facts, not fear. The data speaks clearly. Just as Pakistan must continue working toward economic recovery, it must also confront, firmly and without hesitation, every threat that endangers that recovery. False information and narratives built on distortion are not harmless political tools. They corrode investor confidence, unsettle markets, and chip away at public trust. A campaign rooted in misinformation is not merely misleading. It is injurious to Pakistan’s economy and, by extension, a threat to national security itself.