In a major corporate development, Gillette Pakistan Limited announced that its parent company, Procter & Gamble (P&G), will discontinue its business operations in Pakistan as part of a global restructuring plan.
The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
“The Gillette Company LLC has conveyed to Gillette Pakistan Limited, including its Board of Directors, the decision of the Procter & Gamble Company to discontinue its business in Pakistan as part of its global restructuring program, including portfolio, supply chain and organisation choices to accelerate growth and value creation,” read the notice.
Gillette Pakistan Limited said that a meeting of the Board of Directors will be convened shortly to evaluate the actions required for this business discontinuation, including, where relevant, the potential delisting of Gillette Pakistan Limited from the Pakistan Stock Exchange, in compliance with all applicable legal and regulatory requirements.
At the close of the day, the share price of Gillette Pakistan Limited settled at Rs233.31, a gain of Rs21.21 or 10%.
P&G is an American global consumer goods company founded in 1837. The company is known for brands such as Pampers, Tide, Gillette, and Head & Shoulders.
In a separate statement, P&G said that it would wind up its manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue serving its customers in the South Asian country.
“In line with P&G’s global efforts to accelerate growth and value creation, the company has decided to shift our business and operating model in Pakistan and transition to a third-party distributor model to continue to serve consumers.
“This means we will wind down the manufacturing and commercial activities of P&G Pakistan and Gillette Pakistan Ltd. and serve consumers from our other operations in the region,” P&G said.
The FMCG shared that it will continue to operate the business in the ordinary course until the process is complete, which may take several months.
“Supporting this company decision, P&G Pakistan and the supporting regional teams will begin transition planning immediately, with a focus first on P&G people.
“Employees whose roles are impacted by this decision will be considered for opportunities in other P&G operations outside Pakistan or will be offered separation packages in accordance with local laws, company policies, and our values and principles,” it added.
Back in June, P&G said it would cut 7,000 jobs, or about 15% of its non-manufacturing roles, globally over the next two years as part of its non-core restructuring program.
The company also announced plans to exit some categories, brands and product forms in individual markets, executives said at a Deutsche Bank conference in Paris, adding that the exits could also likely include some brand divestitures.
Meanwhile, the development comes as high-profile companies have announced exits from Pakistan in recent months.
Earlier in July, ride-hailing giant Careem suspended its services in Pakistan amid “challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in the country.”
Around the same time, tech software giant Microsoft also announced to shut down all operations in Pakistan.
Between 2021–2024, over 55 funded startups either shut down or pivoted radically, according to Bloomberg.
Reacting to the announcement, former president of the Institute of Chartered Accountants Pakistan (ICAP) Asad Ali Shah termed P&G’s exit “another red flag” for the investment climate in Pakistan.
“Procter & Gamble’s decision to leave Pakistan underscores a deeper truth: doing business here has become increasingly unviable — not just for multinationals, but for investors of all kinds,” Shah posted on social media platform X.
“When global giants pack up, it signals that our policy unpredictability, currency risks, and regulatory chaos have outweighed market potential,” he said.
“P&G’s exit is a warning. The question is: will we treat it as one?”
Meanwhile, Muzammil Aslam, Advisor Finance & Inter-Provincial Coordination to Chief Minister Khyber Pakhtunkhwa, blamed the exit on “policy inconsistencies”.
“Policy inconsistencies are continuing to hurt Pakistan. Post April 2022 era for existing foreign interest is the most lethal for Pakistan,” Aslam said in a post on X.
“Another evidence for the lack of foreign interest in the stock market is the continued exit by foreigners from the stock market, even due to a record surge in the index,” he added.
Gillette Pakistan Limited goes for delisting
Following the announcement, Gillette Pakistan Limited, in a separate notice to the bourse, informed that it has initiated steps to discontinue its operations in Pakistan.
The company said its Board of Directors has resolved to apply for the voluntary delisting of Gillette Pakistan from the PSX.
“Series Acquisition B.V. who holds more than 90% of the company’s shares, intends to purchase the outstanding securities and shares presently listed at the PSX of the company for the purpose of delisting the company.”
It said that the delisting will follow due process, including a formal application to PSX, determination of a buyback price under applicable rules, and a general meeting of shareholders within 30 days of PSX approval.
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