Procter & Gamble (P&G), one of the world’s leading consumer goods companies, has announced it will discontinue its operations in Pakistan. The decision comes as part of the company’s global restructuring plan, which includes brand consolidation and workforce reduction.
P&G, the maker of popular household brands such as Ariel, Pampers, Safeguard, Pantene, and Head & Shoulders, confirmed it will wind down its manufacturing and commercial activities in Pakistan, including its Gillette Pakistan Ltd. division. Instead, the company plans to continue serving Pakistani consumers through third-party distribution channels from other regional operations.
This move aligns with P&G’s global strategy, revealed earlier this year, which involves cutting up to 7,000 jobs and reducing product lines due to slowing global demand and rising trade tariffs (Bloomberg).
Economic Pressures on Multinationals in Pakistan
P&G’s exit makes it the latest multinational to scale back in Pakistan amid ongoing economic uncertainty, rising power costs, and regulatory hurdles. In recent years, other global players including Shell, Pfizer, Telenor, and TotalEnergies have also reduced or sold their operations in the country.
Gillette Pakistan, which had once reported record revenues of over three billion rupees, has seen its sales almost halved in the fiscal year ending June 2025. Following P&G’s announcement, Gillette Pakistan’s shares surged to a three-week high, touching the 10% daily trading limit.
According to Dawn News, business experts argue that such exits highlight the urgent need for policy reforms, foreign investment facilitation, and improved infrastructure in order to retain and attract global companies.
A Household Legacy in Pakistan
P&G entered Pakistan in 1991 and grew into a top consumer goods company over three decades. The brand became a household name, with millions of Pakistani families using its products daily. It expanded significantly through acquisitions, including a soap plant in 1994 and a detergent facility in 2010.
Despite this legacy, the company believes its new distribution-based model is the most sustainable way forward under current conditions. P&G has assured that employees affected by the restructuring will either be considered for overseas placements or separation packages.
Final Thoughts
The withdrawal of P&G signals a worrying trend for Pakistan’s investment climate. As more multinationals scale back operations, concerns grow over the country’s ability to attract and retain global business giants.
For more on this developing story, read updates on Reuters and Bloomberg.
