German pharmaceutical major Bayer on Thursday announced that it is winding up its business from Pakistan, giving another setback to the cash-strapped nation amidst its precarious economic situation, according to a media report.
The decision by Bayer, one of the largest pharmaceutical companies in the world, came days after local employees of the multinational company held a protest demanding that the company pay them 60 to 100 months’ salaries,ostensibly at par with the company’s termination policies elsewhere in the world, the Dawn News reported.
“Bayer has decided to wind up its business from Pakistan,” the report said.
The management of the company said that the organisation’s assets from its factory in Pakistan have been sold to a local company, which has assured existing employees of job security for at least two years.
“Since these workers would continue to be employed, there was no call for severance packages to be handed out,” the report said.
Prior to Bayer, American pharmaceutical major Eli Lilly made an exit from the Pakistani market last year in November due to the poor economy and harsh business environment in the country.
Pakistan’s economy remains volatile due to uncertainty over the International Monetary Fund’s bailout. Without the active support of the IMF, it is feared that the country may default.
