P&G to shut manufacturing in Pakistan, moves to third-party distribution model
Source: Reuters
Procter & Gamble (P&G), one of the world’s largest consumer goods companies announced that it will 'exit' its direct manufacturing and commercial operations in Pakistan, including Gillette Pakistan Ltd, and transition to a third-party distribution model.
In a statement on Thursday, the company said the decision was part of its global efforts to accelerate growth and value creation.
“P&G has decided to shift our business and operating model in Pakistan and transition to a third-party distributor model to continue to serve consumers,” it said.
“This means we will wind down the manufacturing and commercial activities of P&G Pakistan and Gillette Pakistan Ltd. and serve consumers from our other operations in the region.”
Asad Ali Shah a board member of International Federation of Accountants also posted on X about the exit
Procter & Gamble's exit - 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.
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The company added that it would continue to operate in the ordinary course until the transition process is completed, which could take several months. Transition planning will begin immediately, with the company stating its “first focus is on P&G people.”
Employees whose roles are impacted will either be considered for opportunities in other P&G operations outside Pakistan or offered separation packages in accordance with local laws, company policies, and P&G’s values and principles.
“After consideration of a broad range of options, 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 statement said.
“We thank you for your support all these years that has helped us take P&G in Pakistan as far as we could.”
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Globally, P&G serves approximately 4.6 billion people with its portfolio of trusted brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene, Mach, Bounty, Dawn, Fairy, Gain, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Duracell, Olay, Head & Shoulders, Wella, Gillette, Braun, Fusion, Ace, Febreze, Ambi Pur, SK-II, and Vicks. The company operates in about 75 countries worldwide.