Shell Plc is planning to sell a stake in its Pakistan unit in a setback for the South Asian nation that is going through its worst economic crisis.

The oil giant has informed Shell Pakistan about its intent to sell shares, the company said in a stock exchange filing without giving details on how much stake will be sold.

Shell, one of the oldest multinational companies in Pakistan, holds a 77% stake in the local business and operates more than 700 fuel stations, according to data compiled by Bloomberg.

Pakistan is going through an 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 Pakistan surged by the daily limit of 7.5% to head for its highest close in three months.

“If the negotiated price is more than the current traded price, shareholder will benefit which has been the case in past transaction,” said Memoona Tanveer, head of corporate and high net worth individuals at Dawood Equities Ltd.