Shell Plc has decided to pull out of Pakistan in a setback for the South Asian nation going through its worst economic crisis.
The oil giant has informed Shell Pakistan Ltd. on its intention to sell its 77.42% stake and also its 26% ownership in Pak-Arab Pipeline Co., it said in a statement. It is seeing a lot of interest from international buyers.
The sale comes as Shell executes a strategy under new CEO Wael Sawan to boost returns to shareholders and cut companies that aren’t making enough money. It is also selling its stake in a gas project in Australia and exiting its home energy retail unit in Europe.
Pakistan is going through an economic crisis that has seen its currency fall by a third in the past year. It also sees the prospect of becoming the next emerging market default rising as hopes of an International Monetary Fund bailout fade, according to Moody’s Investors Service.
The country has seen several multinational companies emerge in recent years. Fuel retailer Puma Energy exited in 2021, while trucking startup Trella decided to exit the business in April. Shell, one of the oldest multinational companies in Pakistan, operates more than 600 service stations and has been in the country for 75 years, according to the statement.
Shell Pakistan rose a daily limit of 7.5% to its highest close in three months.
–With the help of Abhay Singh.
