Months after announcing a global restructuring programme, Procter & Gamble Co. said it would be closing its operations in Pakistan. The Cincinnati-based firm stated in a statement that P&G Pakistan, which produces Tide detergent and other home products, will stop its manufacturing and commercial operations as well as its razor division, Gillette Pakistan Ltd. It stated that it will keep serving customers from other businesses in the area.
In June, P&G declared that, as part of an operational revamp, it would reduce the number of brands it owned and lay off up to 7,000 employees over a two-year period. In order to account for the effects of trade tariffs and deteriorating consumer patterns, the company likewise reduced its guidance.
Reason for P&G’s Exit
In light of broader business and economic issues, such as restrictions on profit repatriation and low demand, P&G is the most recent multinational to reduce its operations in Pakistan. Gillette, after hitting a record three billion rupees two years prior, saw Pakistan’s revenue nearly halve in the fiscal year that concluded in June 2025.
Despite being the fifth most populated country in the world, international corporations have retreated from Pakistan in recent years, including Shell Plc, Pfizer Inc., TotalEnergies SE, and Telenor ASA. Last year, P&G sold its Pakistani soap production plant to Nimir Industrial Chemical Ltd.
P&G and Pakistan Bonding
After entering Pakistan in 1991, P&G became one of the leading consumer goods companies in the nation, with well-known brands like Pampers, Safeguard, Ariel, Head & Shoulders, and Pantene. In 1994, it acquired a soap plant, and in 2010, it acquired a detergent facility, further increasing its local presence. According to an official statement, the company has determined that the most sensible approach to continue serving customers in Pakistan at this time is to use a third-party distribution strategy.
Employees would be given consideration for separation packages or overseas assignments, it stated. The board of Gillette Pakistan will convene to discuss discontinuance measures, including potential delisting. Its stock surged to a three-week high, surpassing the daily limit of 10%.
Saad Amanullah Khan, a former CEO of Gillette Pakistan, stated, “I hope such exits make the rulers aware that all is not well,” pointing to regulatory pressures, high power bills, and inadequate infrastructure. In order to “stop hearing of multinational exits”, he expressed his optimism for improved circumstances.
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•Move follows Shell, Pfizer, TotalEnergies, and •Decision driven by low demand, trade restrictions, •P&G Pakistan had been operational since 1991, •Company sold its soap plant last year to Nimir •P&G will continue serving customers via •Employees offered severance packages or overseas |
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