Procter & Gamble (P&G), the multinational consumer goods giant, has announced it will wind down all direct manufacturing and commercial operations in Pakistan, transitioning to a third-party distribution model. The company states this strategic shift comes as part of a global restructuring and follows a recent trend of multinational corporations re-evaluating their presence in Pakistan amid economic challenges.
According to a notice sent to the Pakistan Stock Exchange (PSX) by Gillette Pakistan, its parent company P&G will sell off remaining assets and cease direct involvement in manufacturing and sales.
The decision appears to be a direct response to Pakistan’s difficult economic landscape, which includes persistent inflation, currency devaluation, and restrictive foreign exchange policies that have challenged numerous international firms. P&G will cut operational costs and reduce its exposure to Pakistan’s volatile manufacturing and regulatory environment.
In recent months, P&G has taken concrete steps toward this exit. In April 2024, the company signed an agreement with Nimir Industrial Chemicals to sell its soap manufacturing facility in Hub, Balochistan. By September, Nimir had assumed full operational control of the plant.
Despite the departure, P&G emphasized that its products will remain available to Pakistani consumers through its new distributor-led model. These products include (but not limited to) Ariel, Pampers, and Gillette., etc.
However, the transition raises questions about the future of P&G’s local subsidiary, Gillette Pakistan Ltd. The company confirmed that its Board of Directors would meet to evaluate the necessary steps for the transition. These will include the potential delisting of Gillette Pakistan from the PSX.
P&G stated that the changeover would occur over several months and prioritized the welfare of its affected employees. Staff whose positions are impacted will be considered for transfers to other global P&G operations or receive separation packages in line with local law and company policy.
While some multinationals remain committed, often with adjusted strategies, P&G’s complete manufacturing departure brings to light the ongoing re-evaluation by international businesses in the face of Pakistan’s economic headwinds.