KARACHI: Procter & Gamble (P&G) has announced its decision to exit the Pakistani market as part of its global restructuring efforts, aimed at driving growth through portfolio, supply chain, and organisational changes.

The company shared this move through a stock filing by Gillette Pakistan Ltd (GPL) on Thursday.

In a statement, P&G confirmed that it would phase out its manufacturing and commercial operations in Pakistan. The company will transition to relying on third-party distributors to continue serving customers in the country.

“We will continue operations until the transition is completed, which may take several months,” the statement said. “P&G Pakistan and regional teams will begin transition planning immediately, focusing initially on P&G employees.”

Exit will result in a shift to third-party distribution, potentially leading to job losses and concerns within the business community

As part of the restructuring, employees affected by the decision will either be offered opportunities in other P&G markets or provided with separation packages in line with local laws, company policies, and P&G’s values.

P&G’s portfolio in Pakistan includes well-known brands such as Pampers, Ariel, Always, Safeguard, Head & Shoulders, Pantene, Olay, and Vicks. However, the statement did not specify the number of manufacturing units or employees impacted by the closure.

Gillette Pakistan also disclosed details from its board meeting held on Thursday, noting that it had resolved to initiate the process of business closure in Pakistan, in compliance with all relevant legal and regulatory requirements.

The company’s majority shareholder, Series Acquisition B.V., which holds more than 90pc of Gillette Pakistan’s shares, intends to buy the remaining listed shares on the Pakistan Stock Exchange (PSX) to delist the company.

In line with this, Gillette Pakistan announced that the delisting process will involve a formal application to PSX, determination of a buyback price under relevant rules, and a shareholder meeting within 30 days of PSX approval.

Business community reaction

The American Business Council (ABC) has expressed concern over P&G’s exit and the shift to a third-party distribution model. ABC President Akram Wali Muhammad called the decision a significant development that could have far-reaching consequences, including job losses. He warned that such moves negatively impact Pakistan’s image as a stable investment destination.

Wali cited rising business costs, regulatory challenges, and structural inefficiencies as key factors driving foreign companies to reconsider their operations in Pakistan. He urged policymakers to address these issues to prevent further exits and to ensure that Pakistan remains attractive to international investors.

Reacting to the news, former president of the Institute of Chartered Accountants Pakistan (ICAP) Asad Ali Shah termed P&G’s exit as “another red flag for investment climate”.

“Procter & Gamble’s decision to leave Pakistan underscores a deeper truth: doing business here has become increasingly unviable — not just for multinationals, but for investors of all kinds,” he posted on X.

“When global giants pack up, it signals that our policy unpredictability, currency risks, and regulatory chaos have outweighed market potential,” he said, adding that this was not about one company but about the growing perception that “Pakistan punishes investment instead of protecting it”.

Published in Dawn, October 3rd, 2025