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India took the initiative to help Sri Lanka, but Pakistan did not see such a possibility during the Nazi period. A lot of Indian companies have invested in Pakistan, so the situation there is also weighing on them. Many companies like Tata, Jindal, Hindustan Unilever, Birla have set up business in Pakistan. In such a situation, the bad situation of Pakistan can also affect these companies.
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Tata in Pakistan too
Like India, Tata is a big name in the corporate sector in Pakistan as well. The textile company is flying the Tata brand flag in Pakistan. 31 years ago i.e. in 1991 Tata Textile Mills Limited established its first cotton yarn manufacturing unit in Muzaffargarh-Punjab. After this, the company’s business grew strongly and Tata Yarn became the standard of yarn in the industry.
After the establishment of Tata Textile Mills Limited in 1997, the company received ISO-9002 certification, becoming the first yarn mill in Pakistan. After this, the company expanded its manufacturing business by setting up a second unit in 2004. Now this company has an important contribution in the economic progress of Pakistan. However, the business of this company is also in danger due to the financial crisis that has arisen in the country.
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Jindal family relationship
Sajjan Jindal, MD of the country’s second largest steel company, Jindal Steel Works (JSW) and veteran industrialist Sajjan Jindal also had large businesses in Pakistan. Interestingly, the business relationship between Indian gentleman Jindal and former Prime Minister of Pakistan Nawaz Sharif is well known. Apart from the steel industry, the Jindal Group is still active in the energy sector and the economic conditions there are likely to affect the business of this group. According to a report, Sajjan Jindal’s Nawaz Sharif family has a long business relationship with Ittefaq Group of Industries, a major steel producer in Punjab. Now Nawaz Sharif’s nephew is managing his business.
Pakistani investment in India
Not only Indian brands but also hundreds of Indian companies, which have Pakistani investments, may face losses in doing business in Pakistan. According to a report by the Custodian of Enemy Property Department, Pakistanis have investments in 109 publicly listed companies in India.
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According to another report, Pakistanis have invested money in 577 companies in India, of which more than 266 companies are listed on the Indian stock market, while 318 companies are unlisted. Along with this, the position of foreign companies has also become fragile, including Atlas Auto, one of the biggest names in the Pakistani automotive sector along with Honda Motors.
Impact on Indian companies
The economic situation in Pakistan is also affecting the goods sent from India. According to a report by Trading Economics, in 2021, Pakistan imported about $503 million to India. In this, pharmaceutical products, organic chemicals, sugar, coffee-tea, aluminium, plastic goods were sent to Pakistan from India.
According to the 2021 report, pharmaceutical products worth $190 million, organic chemicals worth $141 million, sugar worth $119 million, coffee-tea worth $8 million and other goods were imported. In such a situation, the economic decline of Pakistan may affect the business of Indian companies related to these goods sent from India to Pakistan and they may have to suffer financial losses.
