Contribution by the multinational companies in Pakistan.

Byline: Khalil Ahmed

Multinational Companies (MNCs) are significant employers across Pakistan which is a substantial support to the government. The government on its own may and should not be doing the work of generating the employmentopportunities rather the government should work as an efficacious regulator to ensure that the objectives are being met as per requirement.

Pakistan unlike India and China has not really been an avid destination of the MNCs from across the world for a multitude of reasons. Though a country with the population exceeding 208 million, Pakistan lacks the lure in terms of attracting the MNCs. Whether leading multinational consumer goods companies, leading beverage companies, global automobile companies, mobile handsets, etc. Pakistan is not the foremost choice in the region.

And those MNCs which have been operating in Pakistan for decades have not invested in local talent as such and have not realized the potential of the Pakistani market. The MNCs operating in Pakistan need to invest in the local talent as is being done in India and China in addition to other countries across the world. Merely imposing global business models and practices in the Pakistani market has not worked and may not work in the future as well. Besides, investing in the local talent, MNCs do invest in Research and Development across the world unlike in Pakistan where window dressing is more prevalent rather than the work which might prove beneficial for the economy and the population of Pakistan.

Proponents of the MNCs believe that the capital repatriation by the MNCs from Pakistan is a normal course of action whereas the opponents presume that the MNCs are fleecing the population of Pakistan and are not even following the international laws. MNCs have not made inroads in employment generation as such and have not set up model Research and Development facilities in Pakistan. MNCs need to make their mark so that people may not equate them with the East India Company (1600-1874) which is an instance of drawbacks.

There are several schools of thought about the operation of the MNCs in Pakistan. According to one school of thought, MNCs in Pakistan have the privileges which might not be offered to them even in our neighboring countries. MNCs in Pakistan are presumed to be so strong that even the government decisions get impact.

MNCs usually are a good source of foreign direct investment. MNCs do work and purchase raw material for the operations...