In a significant update announced on Thursday, Procter & Gamble, the renowned American multinational corporation, stated it plans to gradually phase out its manufacturing and commercial operations in Pakistan. Instead, the company will depend on third-party distributors to ensure continued customer service throughout the country, as part of its broader global restructuring initiative.
P&G’s statement reassures that ‘We will continue to operate the business in the ordinary course until the process is complete, which may take several months.’ The decision highlights a pivotal shift aimed at optimizing the company’s operations globally.
Furthermore, the statement emphasizes, ‘In support of this company decision, P&G Pakistan alongside the regional teams will commence transition planning immediately, focusing primarily on the well-being of P&G employees.’ P&G has pledged to consider impacted employees for roles in other company branches outside Pakistan or provide them with separation packages, reflecting compliance with local regulations, company policies, and P&G’s established values and principles.
In Pakistan, a number of brands are under the P&G umbrella, including Pampers, Ariel, Always, Safeguard, Head & Shoulders, Pantene, Olay, and Vicks.
Meanwhile, Gillette Pakistan, a subsidiary of P&G, said it would evaluate a potential delisting following a decision by its parent to discontinue its business in Pakistan.
It plans to convene a board meeting shortly to evaluate the actions required for this business discontinuation, including the potential delisting from the Pakistan Stock Exchange, the company said in a filing.
Reacting to the news, former president of the Institute of Chartered Accountants Pakistan (ICAP) Asad Ali Shah termed P&G’s exit as “another red flag for investment climate”.