2. The presence of Multinational Corporations in
Pakistan dates back to the early 1930s, Siemens is
perhaps the oldest in the industrial field having set
up in 1932.
Unilever (formerly Lever Brothers), Imperial
Tobacco, Shell and Burma Oil came soon after
Independence in 1947.
3. A new batch of MNCs in Pakistan arrive in the period
of the 90s- Procter and Gamble started operations.
Other global companies such as
Telenor, Warid, Barclays commenced operations.
More Multinational Corporations are entering in
Pakistan and in the future more are expected.
4. The presence of MNCs in Pakistan and also worldwide is
met
with mixed reactions :
Some regard them as imperialist vehicles.
Others who support their presence focus on the
benefits.
5. The presence of MNCs in Pakistan and also worldwide is
met
with mixed reactions :
Some regard them as imperialist vehicles.
Others who support their presence focus on the
benefits.
6. Multinational companies or multinational
corporations bring in essential Foreign Direct
Investment (FDI) that boosts the economy.
MNCs in Pakistan exist in the country through
different forms, franchises, holding companies and
some are fully incorporated. Their presence leads to
skill development.
7. MNCs create employment and provide a source of
living for millions of citizens.
They provide revenue to the government- rent, land
tax through their huge offices.*
*In a survey the average office area was found to be 60,000 sq ft
(approx.)
8. Multinational corporations in Pakistan are involved in
infrastructure development and social uplift programs.
Multinational corporations in Pakistan widen the scope of
goods and services that are available to the nation.
MNCs in Pakistan are taking over the inefficient operations of
former nationalized companies and turning them around.
9. MNCs are very powerful and can dominate the economy.
MNCs are accused of unfair practices –transfer pricing, selling
medicines and goods that are banned in the developed world
in the country.
MNCs repatriate their profits to their home country.
Multinationals are blamed for spreading a culture alien to the
host nation. They are also associated with increasing
materialism.
10. MNCs using their economies of scale can employ lower prices
than the local firms. This kills sale of the local companies and
diminish their brand identities.
Due to their global reach and revenue, MNCs can also operate
at a loss to stifle the competition.
11. MNCs serve an important purpose and help the economy
grow. They widen the range of goods available and in theory
they also raise the quality of goods.
We have a number of examples from the list of Multinational
Companies in Pakistan that may be cited as a beneficial
source of increased economy of the country.
The presence of MNCs in Pakistan is a double edged sword
and care needs to be taken that they do not become too
powerful.
