VW has come (back) to Pakistan, and is still here, in Karachi at least. I've seen a handful of new VWs myself floating about here and there, including the new Transporter, a Phateon and the odd Passat, and of course new Beetles.
The last time Volkswagens were offically sold in Pakistan was 1974, when the dealership had to close because of ZAB's ridiculous nationalization/cut back import policies that continue to haunt us today, and the rise of Jap crap tin boxes on our streets.
The VW, and particularly the Beetle, up until that point was probably Pakistan's no. 1 imported vehicle. The fact that we have so many Beetles on our roads today in running condition is a testament to Pakistan's love for the little machine.
I agree that it was silly of VW not to use the Beetle connection to re-introduce the brand in Pakistan - rather than attempt a pseudo-luxury package. "Made in Germany" plus the Beetle connection, the original Volkswagen product, would surely have boosted initial sales/presence.