Procter & Gamble (P&G), the multinational behind brands like Pampers, Ariel, and Head & Shoulders, has announced it will wind down its operations in Pakistan after more than three decades in the country. The company confirmed that both its consumer goods division and Gillette Pakistan will halt manufacturing and commercial activities, with future demand being met through regional networks.
This step is part of a broader restructuring effort unveiled earlier, under which P&G is reducing its brand portfolio and eliminating thousands of jobs worldwide. This move follows trade pressures, weaker consumption trends, and an overall push toward efficiency.
For Pakistan, the shutting down of P&G reflects deeper challenges. Despite being the fifth most populous country, multinational corporations have faced hurdles such as restrictions on repatriating profits, volatile demand, and high operating costs. Gillette Pakistan, once a strong player in the FMCG sector, saw its revenues fall sharply in the last two years, dropping to nearly half of their peak in 2023.
P&G is not alone in scaling back. In recent years, global giants like Shell, Pfizer, TotalEnergies, and Telenor have reduced their presence in Pakistan, either by divesting or limiting exposure. Analysts suggest that this wave of exits underlines the increasingly difficult business climate for foreign players, despite Pakistan’s vast consumer base.
The company’s history in the country stretches back to 1991, when it entered with imported products and later invested in local facilities. Over time, it became one of Pakistan’s most trusted consumer goods companies. However, last year, P&G sold its soap factory to Nimir Industrial Chemical Ltd., which signalled a small pullback.
In the future, P&G has said a third-party distribution model will be used to keep products available in the Pakistani market. Saad Amanullah Khan, a former chief executive officer at Gillette Pakistan, added that the exit of major players should serve as a wake-up call about Pakistan’s business environment. High energy costs, infrastructure gaps, and regulatory uncertainty are some of the issues to be looked into.
