The parent company of Gillette Pakistan Ltd, Procter & Gamble, announced that discontinue its business operations in Pakistan as part of a global restructuring plan. The listed company disclosed the development in its notice to the Pakistan Stock Exchange PSX on Thursday.
The company will shut down manufacturing commercial activities of P&G as well as its razors division, Gillette Pakistan Limited, the company said in a statement. However, it will continue to serve consumers from other operations in the region, it said.
“The Gillette Company LLC has conveyed to Gillette Pakistan Limited, including its Board of Directors, the decision of the Procter & Gamble Company to discontinue its business in Pakistan as part of its global restructuring program, including portfolio, supply chain and organisation choices to accelerate growth and value creation,” read the notice.
In a separate statement, P&G said that it will wind up its manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue serving its customers in the South Asian country.
“In line with P&G’s global efforts to accelerate growth and value creation, the company has decided to shift our business and operating model in Pakistan and transition to a third-party distributor model to continue to serve consumers.
“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,” P&G said.
P&G in June had announced that it would pair its portfolio of brands and slash as many as 7,000 jobs over two years as part of an operations overhaul. The company also lowered its guidance to reflect the impact of trade tariffs and worsening consumption trends.
“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.
“Employees whose roles are impacted by this decision will be considered for opportunities in other P&G operations outside Pakistan or will be offered separation packages in accordance with local laws, company policies, and our values and principles,” it added.
Multinationals in Retreat
The decision also makes the decision P&G the latest multinational company to scale back its operations from Pakistan amid wider business and economic challenges, including profit repatriation curves and weak demand. The profit revenues of Gillette Pakistan halved in the first fiscal year ended June 2025 after reaching a record Rs 3 billion two years ago.
Earlier, Shell, Pfizer, Total Energies, and Telenor have all pulled back their operations from Pakistan in recent years, selling stakes or operations as multinationals retreat despite its status as the world’s fifth most populous nation. P&G sold its soap manufacturing facility in Pakistan to NIMIR Industrial Chemical Ltd. last year.
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.
When global giants… pic.twitter.com/D5NQhWqxMv
— Asad Ali Shah (@Asad_Ashah) October 2, 2025
P&G entered Pakistan in 1991 and grew into one of the country’s top consumer goods firms, with brands such as Pampers, Safeguard, Ariel, Head & Shoulders, and Pantene becoming household names. It expanded its local footprint, established its soap plant acquisition in 1994, and a detergent facility in 2010.
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“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 company said in a statement.
Another Red Flag for Investors
This is the latest high-profile company to have announced its exit from Pakistan in recent months. Earlier in July, ride-hailing giant Kareem suspended its services in Pakistan amid challenging macroeconomic realities. Intensifying competition and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in the country.
P&G to discontinue its operation in Pakistan. Policy inconsistencies are continuing to hurt Pakistan. Post April 2022 era for existing foreign interest is the most lethal for Pakistan. In this era majority global legacy companies have left Pakistan. Another evidence for lack of… pic.twitter.com/05iqSjLZ49
— Muzzammil Aslam (@MuzzammilAslam3) October 2, 2025
Around the same time, Microsoft also announced a shutdown of all operations in Pakistan. Between 2021 and 2024, over 55 funded startups either shut down or pivoted radically. Business analysts are calling the exit of P&G another red flag for the economic investment climate in Pakistan, raising alarm over the ongoing economic conditions in Pakistan, and heralding that not all is well with Pakistan’s economy. Muzammil Aslam, Advisor, Finance and Inter-Provincial Coordination to Chief Minister Khabar Pakhtunkhwa, blamed the exit entirely on policy inconsistencies.
From GVS South Asia Desk