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P&G shuts down operations in Pakistan
Procter & Gamble (P&G) has announced that it will shut down its operations in Pakistan, delivering a major blow to the country’s business landscape.
The move comes amid mounting economic challenges, making it increasingly difficult for multinational companies to sustain operations in the country.
P&G’s exit underscores the struggles faced by Pakistan in attracting and retaining global businesses.
P&G Leaving Pakistan
P&G confirmed that it will wind down its manufacturing and commercial activities in Pakistan, including the operations of Gillette Pakistan Ltd., a subsidiary of the company.
The firm, however, plans to continue serving Pakistani consumers through third-party distributors, signaling a shift from direct operations to a more indirect presence in the market.
This decision is part of P&G’s larger global restructuring strategy aimed at streamlining operations and focusing on its core markets. The company had already announced plans to cut thousands of jobs worldwide and exit certain markets as part of this program.
Analysts see the Pakistan exit as a reflection of the wider challenges P&G faces in maintaining profitability in volatile markets.
Pakistan’s Growing Economic Instability
P&G’s departure is not an isolated case. Over recent years, other major multinational corporations such as Shell, Pfizer, TotalEnergies, and Telenor have either reduced or completely shut down their operations in Pakistan.
These companies cite rising costs, regulatory hurdles, and unreliable infrastructure as key factors driving their decisions.
Experts warn that this trend could have far-reaching consequences for Pakistan’s economy. Sushant Sareen, a foreign affairs analyst, remarked, “All they'll get is money for security guard duty,” emphasizing how the country’s deteriorating business climate is pushing investors away.
The continued exit of global firms threatens employment opportunities and the overall investment climate, leaving Pakistan at risk of a deeper economic crisis.