Can anyone name any multinational company operating in Pakistan which uses (mostly) raw materials from Pakistan for their operations? Any multinational in textiles, sugar, cement, ceramics, food, refinery, fertilizer, and so on? I only know of one, Bestway Cement, which is a Bestway Holdings company run by British Pakistanis.
If we analyze multinationals, everything they do is import based, making money on transfer pricing of those manufactured products and equipment.
Re: Multinational Cos in Pakistan
Kentucky Fried Chicken's Pakistan website says that 95% of their food and packing material is purchased in Pakistan.
Pepsi and Coca cola should top the list of companies using local raw material .... after all it is 95% H2O ....
On a serious note Lever Brothers Pakistan would be another company which uses a local raw material in its products.
Re: Multinational Cos in Pakistan
In most cases (the automobile industry being a major exception), multinationals do source materials locally. Even if raw materials are cheaper abroad, they then have to add in the cost of shipping them to Pakistan and transporting from Karachi to the factory.
In most case, this additional transportation cost makes it more expensive to use foreign raw materials than Pakistani raw materials.
Even in cases where multinationals import foreign raw materials, the presence of their factories helps the national economy by creating jobs that otherwise would not exist.