P&G to Exit Pakistan, Joining Growing List of Multinationals Scaling Back Operations
Islamabad, Pakistan – October 2, 2024 - Procter & Gamble (P&G) announced today it will discontinue manufacturing and commercial operations in Pakistan, marking the latest multinational corporation to withdraw from the contry amid mounting economic challenges. The decision, months after the company unveiled a global restructuring program, impacts both P&G Pakistan and its subsidiary, Gillette Pakistan Ltd.
The Cincinnati-based consumer goods giant stated it will continue to serve Pakistani consumers through operations in neighboring regions. This move comes as part of a broader plan announced in June to streamline its brand portfolio and reduce its workforce by up to 7,000 jobs over two years, responding to trade tariffs and declining consumer demand.
P&G’s exit follows similar decisions by major international companies including Shell Plc, Pfizer inc., TotalEnergies SE, and Telenor ASA, all of whom have recently reduced their presence in Pakistan by selling stakes or fully exiting operations. Last year, P&G sold its soap manufacturing facility in Pakistan to Nimir Industrial Chemical Ltd.
Gillette Pakistan’s revenue has experienced a notable downturn,nearly halving in the fiscal year ending June 2025 after reaching a peak of three billion rupees two years prior. The company’s board will convene to discuss the steps for discontinuation, potentially including delisting from the stock exchange. Notably, shares of Gillette Pakistan jumped by the 10% daily limit following the proclamation, reaching a three-week high.
P&G entered the Pakistani market in 1991 and quickly became a leading consumer goods firm, establishing brands like Pampers, Safeguard, Ariel, Head & Shoulders, and pantene as household names. The company expanded its local presence with the acquisition of a soap plant in 1994 and a detergent facility in 2010.
According to P&G, a third-party distribution model will be implemented to continue serving the Pakistani market. Employees will be considered for potential overseas placements or offered separation packages.
“I hope such exits make the rulers aware that all is not well,” said Saad Amanullah Khan, former CEO of Gillette Pakistan, citing high power costs, inadequate infrastructure, and regulatory pressures as contributing factors. He expressed hope for improved conditions to “stop hearing of multinational exits.”