Procter & Gamble to Cease Operations in Pakistan, Shift to Distributor Model

Karachi, Pakistan – Procter & Gamble (P&G), the American consumer goods giant and parent company of Gillette Pakistan Limited, has announced a major strategic decision to discontinue its business operations in Pakistan. This move is part of P&G’s broader global restructuring program, which aims to accelerate growth, optimize its portfolio, and enhance value creation worldwide.

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The significant corporate development was formally disclosed by Gillette Pakistan Limited to the Pakistan Stock Exchange (PSX) on Thursday.

The notice confirmed that The Gillette Company LLC communicated P&G’s decision to wind down its direct business in the country. As a result, the Board of Directors of Gillette Pakistan Limited will soon convene to evaluate necessary actions. These actions could potentially include the delisting of Gillette Pakistan Limited from the PSX, subject to all legal and regulatory compliance.

Despite the news, the market reacted positively, with the Gillette Pakistan Limited share price closing the day at Rs233.31, marking a 10% gain (up Rs21.21).

P&G’s New Operating Model in Pakistan

In a separate statement, Procter & Gamble clarified that while it is winding down its local manufacturing and commercial activities for both P&G Pakistan and Gillette Pakistan Ltd., it is not entirely pulling its popular products from the market. Instead, the company is transitioning to a third-party distributor model. This strategic shift will allow P&G to continue serving Pakistani consumers by supplying products from its other regional operations.

Known for iconic brands like Gillette, Pampers, Tide, and Head & Shoulders, P&G stated that its core focus is on ensuring a smooth transition. The company confirmed it will operate the business as usual for several months until the process is complete.

P&G emphasized that it will prioritize its employees affected by this decision. Impacted personnel will be considered for opportunities outside Pakistan within P&G’s global network or will be offered comprehensive separation packages aligned with local laws and company values.

This localized exit aligns with P&G’s earlier global announcements. In June, the company revealed plans to cut approximately 7,000 non-manufacturing jobs—about 15% of its non-core roles—over the next two years. Executives also indicated a willingness to exit specific categories, brands, and product forms in individual markets as part of the overarching strategic restructuring.