Procter & Gamble (P&G), the global consumer goods giant, has announced it will shut down its business in Pakistan. The decision covers both its manufacturing and commercial operations, including Gillette Pakistan Ltd.
The Cincinnati-based company said it will continue to serve Pakistani consumers through its other regional operations. The decision marks a major shift for a company that has been part of the Pakistani market since 1991.
Global Restructuring Meets Local Struggles
P&G’s exit follows a global restructuring program it announced earlier this year. The company is reducing its brand portfolio and cutting about 7,000 jobs worldwide. It is also struggling with weaker global demand and higher tariffs.
But in Pakistan, the challenges go beyond global restructuring. Multinationals have long faced difficulties repatriating profits, paying high energy costs, and dealing with regulatory hurdles. At the same time, weak consumer spending has hurt sales.
ALSO READ: Pakistan Test-Fires Fatah-4 Cruise Missile with 750 km Range | Watch
Gillette Pakistan’s revenue, for example, fell sharply in the fiscal year ending June 2025—nearly half its previous peak of three billion rupees in 2023.
Multinationals Retreat from Pakistan
P&G is not alone in leaving. Shell Plc, Pfizer Inc., TotalEnergies SE, and Telenor ASA have all scaled back their Pakistan operations in recent years. Many have sold stakes or exited altogether.
This trend is worrying, given Pakistan’s position as the world’s fifth-most populous nation. For years, global companies viewed it as a high-growth market. Today, however, many see it as a high-risk one.
Last year, P&G sold its soap manufacturing plant to Nimir Industrial Chemical Ltd. This hinted at a reduced local presence long before today’s announcement.
Household Brands Leave a Void
For over three decades, P&G brought global household brands into Pakistani homes. Pampers, Safeguard, Ariel, Head & Shoulders, and Pantene became part of everyday life. P&G had built its local base with a soap plant in 1994 and a detergent facility in 2010. But now, those investments will no longer anchor the company in Pakistan.
ALSO READ: Bomb Blast in Quetta, Pakistan Kills 10 Dead and Several Injured
In its statement, P&G explained: “The company has decided a third-party distribution model is the most prudent way to continue to serve consumers in Pakistan at this time.” The company also promised employees either international placements or separation packages.
How Will It Affect Jobs in Pakistan?
The closure will directly impact hundreds of P&G workers in Pakistan. While some may find overseas placements, many could face job losses. Industry experts warn the ripple effect could be larger. Suppliers, retailers, and distributors linked to P&G’s supply chain are likely to see reduced business.
This comes at a time when unemployment is already a major concern for Pakistan’s economy. The loss of another multinational employer adds to the growing stress on the job market.
Market Reaction & Share Movement
Following the news, Gillette Pakistan’s shares surged 10% to hit the upper daily limit. Investors speculated about a potential delisting or restructuring. The company’s board is set to review the next steps for winding down operations.
“All Is Not Well”
The news has reignited concerns about Pakistan’s economic climate. Saad Amanullah Khan, former CEO of Gillette Pakistan, said: “I hope such exits make the rulers aware that all is not well.”
He blamed high energy costs, weak infrastructure, and regulatory pressures for pushing global firms away. “We stop hearing of multinational exits,” he added, expressing hope for reforms.
ALSO READ: PoK Protests Set to Challenge Shehbaz Sharif’s US Diplomacy Plans
