ISLAMABAD: In a significant shift, consumer goods giant Procter & Gamble (P&G) has decided to discontinue its direct business operations in Pakistan, marking yet another high-profile multinational exit from the country. The announcement was formally communicated through Gillette Pakistan Limited in a notice submitted to the Pakistan Stock Exchange (PSX) on Thursday.
According to the statement, P&G’s decision is part of a broader global overhaul aimed at streamlining operations, optimizing its product portfolio, and enhancing growth potential.“The Gillette Company LLC has informed Gillette Pakistan Limited and its Board of Directors about Procter & Gamble’s global restructuring strategy, which includes the discontinuation of its business presence in Pakistan,” the notice stated.
Gillette Pakistan Limited also revealed that its Board will soon convene to determine necessary steps for winding down operations. This may include a formal application for voluntary delisting from the PSX, ensuring compliance with all relevant legal and regulatory procedures.
P&G, a U.S.-based multinational established in 1837 and known for household brands such as Gillette, Tide, Pampers, and Head & Shoulders, confirmed that it would end both manufacturing and direct commercial operations in Pakistan. However, the company said it plans to continue serving Pakistani consumers via third-party distributors.
“As part of our strategic transformation, we’re transitioning our business model in Pakistan to a third-party distributor system. This means that P&G Pakistan and Gillette Pakistan Ltd. will begin winding down their local operations while continuing to supply the market through regional operations,” the company said in a separate statement.
The transition is expected to unfold over the coming months, during which operations will continue as usual. P&G emphasized that its primary concern during the transition is its employees. Impacted staff will either be offered positions within the company’s international operations or provided severance packages in line with local employment laws and internal company policies.
The company also indicated that its global restructuring includes exiting certain product categories and markets, with potential divestments of specific brands also on the table. These announcements were made at a recent Deutsche Bank conference in Paris.
P&G’s departure comes amid a broader trend of multinational companies exiting Pakistan due to deteriorating economic and regulatory conditions. Earlier this year, tech firm Microsoft closed its local operations, and ride-hailing platform Careem suspended services, citing macroeconomic challenges, intense competition, and shifting capital priorities. Shell and Pfizer also pulled out recently.
Data from Bloomberg indicates that between 2021 and 2024, more than 55 funded Pakistani startups either shut down or drastically changed direction.
Commenting on the situation, Asad Ali Shah, former president of the Institute of Chartered Accountants of Pakistan (ICAP), described P&G’s exit as a troubling signal for foreign investment.
“This isn’t just about one company leaving it’s a reflection of Pakistan’s deteriorating business climate,” Shah wrote on X (formerly Twitter). “When global companies with strong brand equity and deep pockets choose to withdraw, it highlights fundamental issues such as inconsistent policies, currency instability, and regulatory uncertainty.”
Following the announcement, Gillette Pakistan Limited issued a separate notice confirming it has begun steps to wind down operations. The Board has passed a resolution to apply for voluntary delisting from the PSX. Series Acquisition B.V., which owns over 90% of Gillette Pakistan’s shares, has expressed intent to acquire the remaining publicly listed shares as part of the delisting process. The company stated that a buyback price will be determined in accordance with PSX rules, followed by a shareholders’ meeting within 30 days of receiving approval from the stock exchange
