P&G announces to shut down operations in Pakistan

Procter & Gamble (P&G), the American consumer goods multinational, announced on Thursday that it would wind down its manufacturing and commercial operations in Pakistan as part of a global restructuring programme. The company said it would instead rely on third-party distributors to continue serving customers in the country.

In a statement, P&G said it would continue operating in the ordinary course until the process is completed, which could take several months. Transition planning will begin immediately, with a focus on employees affected by the decision.

“Employees whose roles are impacted will be considered for opportunities in other P&G operations outside Pakistan or will be offered separation packages, in line with local laws, company policies, and P&G’s values and principles,” the statement read.

P&G’s portfolio in Pakistan includes widely known brands such as Pampers, Ariel, Always, Safeguard, Head & Shoulders, Pantene, Olay, and Vicks.

Meanwhile, Gillette Pakistan, a subsidiary of P&G, announced it would evaluate a potential delisting from the Pakistan Stock Exchange following its parent company’s decision.

The company said its board would meet shortly to consider the necessary steps for business discontinuation.

The development has raised concerns about Pakistan’s investment climate. Former president of the Institute of Chartered Accountants Pakistan (ICAP), Asad Ali Shah, described the move as “another red flag for investment.”