India attracts record foreign investment as Pakistan sees firm exits
Major corporations continue withdrawing from Pakistan as India attracts record investment levels, reflecting divergent business environments between the South Asian neighbors. Procter & Gamble announced that manufacturing and commercial operations will close in Pakistan, following exits by Shell, Pfizer, TotalEnergies, Telenor, and Microsoft across the consumer goods, energy, pharmaceuticals, telecommunications, and technology sectors.
High electricity expenses, regulatory uncertainty and infrastructure limitations deter multinational firms from Pakistan. The pharmaceutical industry faces extended delays for price approvals and regulatory obstacles from authorities, while currency weakness, inflation and foreign exchange constraints damage profitability.
India drew $81 billion in foreign investment through the 2024-25 fiscal year through economic expansion, middle class growth and supportive policies. Airbus, Microsoft, Apple, Amazon and NTT DATA are expanding operations, while pharmaceutical manufacturer Eli Lilly committed over $1 billion to contract production and a capability center in Hyderabad. VinFast is constructing a $2 billion electric vehicle factory in Tamil Nadu.
