Procter & Gamble and Gillette to Shut Down Local Operations, Shift to Distributor Model in Pakistan

Procter & Gamble (P&G), one of the world’s largest multinational consumer goods companies, has announced that it will gradually shut down its manufacturing operations in Pakistan. The company, along with Gillette Pakistan Limited, will transition to a third-party distributor model over the coming months.

In its official statement, P&G explained that the decision is part of a global business strategy aimed at optimizing operations and ensuring efficiency. Under this new model, both manufacturing and trading activities in Pakistan will be phased out. However, the company emphasized that this transition will not disrupt product availability for Pakistani consumers.

According to P&G, everyday essentials including its leading brands will remain accessible in the local market. Products will be supplied through regional operations and distributed by third-party partners to ensure continuity. This assurance was aimed at addressing consumer concerns regarding possible shortages.

The company also highlighted measures being taken to support employees during this transition. Workers whose jobs will be affected by the shutdown are expected to either receive opportunities within P&G’s overseas offices or be provided with severance packages. These measures will comply with local labour laws as well as the company’s internal employee support policies.

Industry analysts note that the shift reflects broader challenges faced by multinational companies operating in Pakistan, including economic uncertainty, high production costs, and regulatory hurdles. Moving to a distributor-led model may allow P&G to reduce operational burdens while maintaining a steady presence in the market.

Despite these structural changes, P&G stressed that “business will continue as usual” during the transition period. Consumers in Pakistan will continue to see the company’s products on store shelves until the complete handover to regional distributors is finalized.

The development signals a major change for the consumer goods sector in Pakistan, where P&G has been a leading player for decades. While the exit from direct operations is a significant step, the company’s continued product availability through regional distribution ensures that its brands will remain part of Pakistani households.