Mr Muhammad Hamza Tanvir graduated from COMSATS University. He has a keen interest in international relations and regional politics.
Israel has killed over 21,000 Palestinians since October 7, 2023. This includes a huge number of children and women. Most of the people killed in this war are civilians, including journalists. Israel blames Hamas for its recent genocide in the Gaza Strip. However, many, including UN Secretary-General Antonio Guterres, hold that the Hamas attacks did not happen in isolation, as they were the result of decades of oppression and occupation.
Moreover, it is being claimed by many experts that Israel is committing this ethnic cleansing in Gaza to build the Ben-Gurion Canal around the Gaza Strip to achieve its economic aims and decrease dependence on the Suez Canal. Different international food chains and brands have been supporting Israel in its war crimes in Gaza. This has sparked outrage among pro-Palestinian people all around the globe.
Israel’s technological advancement, its support by the United States and some other European nations, disharmony among the Muslim states, and its weak military strength have coerced the pro-Palestinian people to look for other means to stop Israel’s atrocities. Boycotting pro-Israel and Israeli products has become an effective way to protest against Israel’s massacre in Gaza. For this purpose, the Palestinian people have developed the “Boycott, Divestment, and Sanction movement.”
This movement has enlisted numerous pro-Israel products that the weak Muslim nations should boycott to support Palestine. Although the movement has been labeled anti-Semitic by sympathizers of Israel, a host of famous personalities, including celebrities, have joined it. Amidst this new wave of Israeli war crimes in Gaza, the BDS movement has resurfaced. People around the world are boycotting the brands that, directly or indirectly, are supporting Israel in its genocidal campaign in Gaza. This boycott of Israeli products has resulted in colossal losses for many of these brands.
As per reports, Starbucks has faced a huge loss of more than $11 billion due to this boycott. Furthermore, reports suggest that Starbucks and H&M would permanently close their businesses in Morocco by the end of 2023 due to the losses followed by the prevailing boycott. The Israeli boycott campaign is gaining momentum with time. People in Pakistan have also shunned pro-Israel brands in the wake of this boycott movement. McDonald’s, Nestlé, Pepsi, Fiverr, and Amazon are among the most well-known pro-Israel brands and companies in Pakistan.
McDonald’s Pakistan has experienced the most serious blowback due to this boycott. The effect of McDonald’s boycott could be gauged by the fact that it has lowered its prices by up to 60 percent to maintain its sales in the country. However, this boycott campaign has sparked a new debate among citizens about whether international brands should be boycotted or not.
In this renewed debate on boycotting pro-Israel brands, some people hold that international brands and companies operating in Pakistan should not be boycotted. Such people have their views about the issue. Their strongest argument is that a huge number of the Pakistani population is associated with pro-Israel international brands and companies working in the country to earn their livelihood.
As per estimates, Nestlé runs four factories in Pakistan and has almost 3,700 direct employees. In addition, a huge number of people are also indirectly associated with Nestlé by supplying, selling, and distributing their products. McDonald’s Pakistan also has a huge number of employees in Pakistan. The same goes for Unilever and other pro-Israel companies operating in Pakistan.
The country earns a huge chunk of its remittances through freelancing. According to the State Bank of Pakistan (SBP), Pakistan earned almost $397 million in FY 2021–22. Fiverr, headquartered in Israel, is one of the major freelancing platforms and takes 20 percent of every order. This also strengthens Israel’s economy, along with providing remittances to countries like Pakistan.
Another major argument the people opposing the Israeli boycott present is that boycotting international brands will hamper foreign direct investment (FDI) in the country in the future. For a dollar-starved country like Pakistan, foreign direct investments are necessary to solve its employment and economic issues. Foreign investors and international companies will be frightened to invest in Pakistan, lest the boycotting attitude of the country have a detrimental effect on its economy.
On the other hand, there are people in Pakistan who support boycotts against pro-Israel brands and companies. In the past, there has been a boycott campaign in Pakistan against French companies because of the pro-blasphemy stance of the French government. Supporters of the boycott campaign also have solid arguments in support of their stance. They hold that boycotting pro-Israel companies will pressure them and the Israeli government economically. Recently, Starbucks has faced massive losses due to its pro-Israel stance. Moreover, the boycott of McDonald’s in Pakistan and other Muslim countries has also been effective.
No doubt, boycotting international brands in Pakistan will impinge on the economy of the country by reducing foreign direct investment. It will also impact the people employed by brands like Nestlé, Pepsi, Unilever, and other such companies. However, it will also help in the promotion of local brands. Instead of using cold drinks made by international companies, Pakistani people can use local soft drinks like Cola Next, Pakola, etc.
This will also help in decreasing the current account deficit of the country, along with providing alternate employment opportunities to people affiliated with international brands in Pakistan. Generating employment opportunities inside the country and an increase in the value of the rupee will cease the persistent brain drain in Pakistan.
Two of Pakistan’s neighboring countries, Russia and China, have made significant progress by promoting local products. Russia has launched its own brand to replace McDonald’s in the country. Similarly, China has also emerged to the level of a superpower by promoting local industries. This has provided a significant boost to the country’s economy. By developing local industries, China has also become one of the major exporters in the world.
Promoting local industries can also elevate Pakistan’s economic plight. For freelancing, Pakistani people can also use local platforms. In addition, promoting local businesses will also decrease their dependence on foreign companies. It will also increase the value of the rupee internationally. Indeed, there are contradictory views on boycotting international companies and businesses. However, the arguments on both sides have their own weight and strengths.
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The views and opinions expressed in this article/paper are the author’s own and do not necessarily reflect the editorial position of Paradigm Shift.
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