By Staff Reporter
KARACHI: Procter & Gamble Co. plans to shutter its manufacturing and commercial operations in Pakistan as part of a broader restructuring, joining a wave of multinationals scaling back in the South Asian nation amid economic headwinds.
The Cincinnati-based consumer-goods giant will shift to relying on third-party distributors to supply products in the country, according to a statement on Thursday. The move affects brands including Pampers diapers, Ariel detergent, Always sanitary pads, Safeguard soap, Head & Shoulders shampoo, Pantene hair care, Olay skin care and Vicks cough remedies.
“We will continue to operate the business in the ordinary course until the process is complete, which may take several months,” P&G said in the statement. The decision is tied to the company’s global overhaul of its consumer products group.
P&G said it would prioritize employees during the transition, with affected workers considered for roles elsewhere in the company outside Pakistan or offered separation packages compliant with local laws and corporate policies. “Supporting this company decision, P&G Pakistan and the supporting regional teams will begin transition planning immediately, with a focus first on P&G people,” the statement added.
Separately, Gillette Pakistan Ltd., a P&G subsidiary, said it would weigh delisting from the Pakistan Stock Exchange in response to the parent’s exit. The company plans to hold a board meeting soon to assess necessary steps, including the potential delisting, according to a regulatory filing.
The announcement underscores mounting challenges for foreign investors in Pakistan, where policy shifts and regulatory hurdles have deterred commitments.
Asad Ali Shah, former president of the Institute of Chartered Accountants Pakistan, called the pullout “another red flag for investment climate” in a post on X. “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,” Shah wrote. “When global giants pack up, it signals that our policy unpredictability, currency risks, and regulatory chaos have outweighed market potential.”He added that the departure reflects a broader sentiment: “Pakistan punishes investment instead of protecting it.”
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