Official: P&G to Shut Down Operations in Pakistan

Procter & Gamble (P&G), the global consumer goods giant, has announced it will wind down its manufacturing and commercial operations in Pakistan, including those of Gillette Pakistan Ltd. The company will instead move to a third-party distributor model to continue serving Pakistani consumers. This decision is part of P&G’s global strategy to accelerate growth and create more value. The company said it will continue normal business operations in Pakistan until the transition is complete, a process expected to take several months. P&G stated that the transition planning will begin immediately, with a primary focus on supporting its employees. Staff whose roles are affected will be considered for opportunities in other P&G operations outside Pakistan or will receive separation packages in line with local laws and company policies. Previously, P&G announced in June that it would reduce its brand portfolio and cut up to 7,000 jobs worldwide over a two-year period in response to trade tariffs and weakening consumption trends. After reviewing several options, P&G concluded that working with a third-party distributor is the most practical way to maintain its products’ availability in Pakistan for now. The company thanked its employees, partners, and consumers for their support over the years, saying, “Thank you for your support all these years that has helped us take P&G in Pakistan as far as we could.” The Gillette Company LLC has formally notified Gillette Pakistan Limited and its Board of Directors about Procter & Gamble’s decision to discontinue its business operations in Pakistan as part of a global restructuring strategy aimed at accelerating growth and value creation. In response, Gillette Pakistan Limited will soon convene a Board meeting to assess the necessary steps for winding down its business in the country, the company stated in a notification to the Pakistan Stock Exchange (PSX). Gillette Pakistan’s revenue nearly halved in the fiscal year ending June 2025, after previously hitting a record Rs. 3 billion two years earlier. This review will include, if needed, the potential de-listing of Gillette Pakistan Limited from the Pakistan Stock Exchange, ensuring that all actions comply with relevant legal and regulatory requirements, the notification added. P&G’s products will continue to be available in Pakistan, but they will now be supplied through regional operations and local distributors rather than direct manufacturing and sales by the company itself. The exit makes P&G the latest multinational to scale back in Pakistan, joining the likes of Shell Plc, Pfizer Inc., TotalEnergies SE, and Telenor ASA, all of which have either sold stakes or reduced their presence in the country in recent years. P&G first entered Pakistan in 1991 and quickly became a household name, with brands such as Pampers, Safeguard, Ariel, Head & Shoulders, and Pantene. The company expanded its local footprint with a soap plant acquisition in 1994 and a detergent factory in 2010. Last year, P&G sold its soap manufacturing facility in Pakistan to Nimir Industrial Chemical Ltd.