Multinational retreat from Pakistan
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Procter & Gamble will shut down business in Pakistan, following Shell and Pfizer exits
The Economic Timesยท 2025-10-02 08:01
Core Viewpoint - Procter & Gamble (P&G) has decided to discontinue its manufacturing and commercial activities in Pakistan, including its Gillette division, as part of a broader restructuring effort amid challenging economic conditions in the country [1][3][7]. Company Actions - P&G will wind down its operations in Pakistan and shift to a third-party distribution model to continue serving consumers in the region [1][7]. - The company had previously announced plans to reduce its brand portfolio and cut up to 7,000 jobs globally over two years as part of an operational overhaul [2]. - Gillette Pakistan's revenue has significantly declined, nearly halving in the fiscal year ending June 2025, after reaching a peak of three billion rupees two years prior [3]. Industry Context - P&G's exit reflects a broader trend of multinational companies scaling back operations in Pakistan due to economic challenges, including profit-repatriation restrictions and weak consumer demand [3][8]. - Other major companies, such as Shell, Pfizer, TotalEnergies, and Telenor, have also reduced their presence in Pakistan in recent years [3]. - The decision to exit has raised concerns among industry leaders about the economic environment, highlighting issues like high power costs and regulatory pressures [8].