After Shell, Pfizer, P&G becomes latest MNC to exit Pakistan
What's the story
Procter & Gamble (P&G), the multinational consumer goods giant, has announced its decision to exit Pakistan. The move comes as part of a wider global restructuring plan announced by the company earlier this year. P&G will wind down its manufacturing and commercial operations in Pakistan, including those of Gillette Pakistan Ltd., and switch to a third-party distribution model.
Restructuring details
P&G's global restructuring plan
The decision to exit Pakistan comes after P&G's announcement in June about a major global restructuring plan. The company had said it would reduce its brand portfolio and cut up to 7,000 jobs over the next two years as part of this overhaul. The move was also prompted by trade tariffs and declining consumption trends, which have been affecting the company's operations worldwide.
Market trends
Trend of multinationals exiting Pakistan
P&G's exit from Pakistan follows a trend of other multinationals such as Shell, Pfizer, TotalEnergies, Microsoft, and Telenor ASA pulling back their operations in the country. The decision comes amid wider business and economic challenges including profit-repatriation curbs and weak demand. Saad Amanullah Khan, former CEO at Gillette Pakistan, expressed hopes that such exits would make authorities aware of existing issues like high power costs and regulatory pressures.