Farooq Awan

The Institute of Cost and Management Accountants of Pakistan (ICMA) has reported that geopolitical tensions and international boycott campaigns have had a noticeable impact on the sales performance of several global brands operating in Pakistan, adding another layer of pressure to multinational companies already facing economic and operational challenges.

According to the ICMA research report available with Wealth Pakistan, global events and political developments have influenced consumer sentiment in Pakistan, where boycott trends have gained strength through social media and public campaigns. The report notes that these movements have affected multinational brands across various sectors, particularly in food, beverages and personal care, where consumer-facing companies are more directly exposed to shifts in public perception.

ICMA states that boycott-driven declines in sales come on top of broader market pressures, including inflation, rising input costs, heavy taxation and foreign exchange restrictions. These combined factors have contributed to reduced profitability and have influenced decisions by multinationals to restructure, scale down or modify their business models.

The report highlights that geopolitical sentiments can reshape purchasing patterns, especially in countries where consumers actively respond to political or humanitarian developments abroad. In Pakistan, the influence of such movements has been reflected in reduced demand for certain global products, prompting companies to reassess marketing strategies and adjust volumes accordingly.

ICMA notes that while the impact of boycott campaigns varies across sectors and brands, the effect has been significant enough to influence short-term sales trends. Companies with large consumer-facing portfolios, particularly those dependent on frequent retail purchases, are more susceptible to these shifts.

The study positions boycott-related sales disruptions as part of a broader set of external factors influencing multinational operations in Pakistan. Alongside cost-driven restructuring, regulatory challenges and changes in consumer purchasing power, geopolitical pressures have emerged as a notable contributor to market volatility for foreign brands.

According to the institute, the combined impact of economic and geopolitical pressures underscores the need for multinational firms to maintain flexible strategies in markets affected by global events. ICMA suggests that companies operating in Pakistan may need to diversify outreach methods, strengthen distribution resilience and monitor consumer sentiment closely to manage such disruptions.

The report indicates that despite these challenges, multinational companies continue to maintain market presence through adaptive business models and distribution networks. ICMA notes that understanding and responding to shifts in consumer behaviour remains essential for sustaining sales in an environment influenced by both domestic and international developments.

Credit: INP-WealthPk