Procter & Gamble (P&G), one of the world’s largest consumer goods companies, has officially announced that it will wind down its direct manufacturing and commercial operations in Pakistan. The company will now serve Pakistani consumers through third-party distributors, rather than operating its own plants and offices. This marks a major shift in P&G’s three-decade presence in the country.
Global Strategy Behind the Move
According to P&G, the decision is part of its global restructuring plan aimed at accelerating growth and optimizing value. The company has been reducing its brand portfolio and cutting costs worldwide. Earlier this year, it revealed plans to trim up to 7,000 jobs globally over two years in response to economic pressures and weak demand trends.
In Pakistan, P&G concluded that outsourcing distribution offers a more sustainable approach in the current business environment. The move comes as several multinational companies, including Shell, Pfizer, TotalEnergies, and Telenor, have scaled back their operations in the country due to regulatory hurdles and rising costs.
Impact on Employees and Market
P&G confirmed that employees impacted by the shutdown will be considered for opportunities abroad within other company operations or will receive separation packages in line with local labor laws. While the decision raises concerns about job losses and investor sentiment, the company stressed that its products will remain available in Pakistan through regional supply chains and local partners.
Gillette Pakistan and Financial Challenges
The company’s subsidiary, Gillette Pakistan Limited, has also been formally notified of the decision. Its board is expected to meet soon to discuss steps for winding down operations, which may include delisting from the Pakistan Stock Exchange (PSX).
Financial struggles have already been evident, with Gillette Pakistan’s revenues falling nearly 50% in the fiscal year ending June 2025. Analysts view this as a sign of the mounting challenges multinational firms face in the country’s volatile market.
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Legacy of P&G in Pakistan
P&G entered Pakistan in 1991, introducing household names such as Pampers, Ariel, Safeguard, Head & Shoulders, and Pantene. Over the years, it expanded through manufacturing facilities, including a soap plant acquisition in 1994 and a detergent factory in 2010. However, in 2024, P&G sold its soap plant to Nimir Industrial Chemical Ltd., signaling a gradual pullback from local operations.
“Thank you for your support all these years that has helped us take P&G in Pakistan as far as we could,” the company stated in its announcement.
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