On Friday, The Pakistan Business Council (PBC) notified that many multinational businesses are relocating or intending to relocate their back offices from Pakistan.
This issue comes after a notable hike in Pakistani businesses registering in Dubai, indicating a growing migration in the face of high unemployment and an economic slump in Pakistan. The tech industry has already registered concerns, warning that these disruptions could cost Pakistan’s economy up to $300 million.
The Dubai Chamber of Commerce reported that between January and June 2024, more than 3,968 Pakistani companies registered in Dubai, making Pakistan the second-ranked country on the list. The figure was also 17 % more than the businesses registered during the same period in 2023.
Hundreds of thousands of professional and unskilled workers have already left Pakistan, and millions more are reportedly looking for work overseas.
On social media platform X, a statement was made by PBC “While we struggle with the costs of idle capacity in power generation leading to unemployment and loss of exports and tax revenue, we now have to contend with the threat of idle capacity in the emerging software sector due to poor execution of a firewall.”
The PBC believed that even if a firewall is required for security, testing may have spared the livelihoods of thousands of freelance software developers and prevented harm to Pakistan’s standing as a dependable supplier of IT/IT-enabled services.
The authorities were urged to go back “and get the right firewall or learn to apply it without creating unnecessary impact on employment and exports”
“IT and IT-enabled services, besides agriculture and tourism offer valuable opportunity to achieve the PM’s export target over the next three years. High speed connectivity is also vital for the domestic economy,” said PBC.
The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed concern that frequent internet outages in Pakistan could jeopardize the country’s economic success.
“These disruptions are not mere inconveniences; but a direct, tangible and aggressive assault on the industry’s viability – inflicting an estimated and devastating financial losses estimated to reach $300 million, which can further increase exponentially,” Ali Ihsan, senior vice chairman of Pakistan Software Houses Association (PSHA), said in a statement.
Internet blackout and slow internet speed further worsened situation. Due to these issues many multinational businesses are relocating overseas, indicating disbelief and distrust in Pakistan’s economic environment.
Due to high unemployment, poor development, and political instability, worlds fifth most populated nation is facing crisis.
