(Bloomberg) -- Shell Plc has decided to exit Pakistan in a setback for the South Asian nation that is going through its worst economic crisis.
The oil giant has informed Shell Pakistan Ltd. about its intent to sell its 77.42% stake and also 26% ownership of Pak-Arab Pipeline Co., it said in a statement. It is seeing strong interest from international buyers.
The sale comes as Shell executes a strategy under new Chief Executive Officer Wael Sawan to increase returns to shareholders and cut businesses 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.
Read More: Shell Boosts Dividend 15% as It Pivots Back to Oil and Gas
Pakistan is going through economic turmoil that has seen its currency drop by a third in the past year. It is also seeing rising prospects of becoming the next emerging market to default as hopes of securing a bailout from the International Monetary Fund dim, according to Moody's Investors Service.
The nation has seen several multinational companies exit in the last few years. Fuel retailer Puma Energy exited in 2021, while trucking startup Trella decided to wind down its business in April. Shell, one of the oldest multinational companies in Pakistan, operates more than 600 fuel stations and has been in the country for 75 years, said the statement.
Shell Pakistan surged by the daily limit of 7.5% to their highest close in three months.
--With assistance from Abhay Singh.
(Updates with details from statement in second paragraph)
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