P&G suspends manufacturing in Pakistan, shifting to third-party distributor

P&G Pakistan says transition to third-party distributor model will commence immediately
An undated image of P&G Pakistan factory. —P&G Pakistan
An undated image of P&G Pakistan factory. —P&G Pakistan

Procter & Gamble (P&G) on Thursday announced to cease its manufacturing in Pakistan as part of its global business rethink.

Under this international restructuring, the renowned American consumer goods maker will transition into a third-party distributor model, which will continue serving consumers in Pakistan.

It's worth noting that Gillette Pakistan Ltd, a P&G subsidiary, is also winding down the manufacturing and commercial activities in Pakistan.

“We will continue to operate the business in the ordinary course until the process is complete, which may take several months,” the company said.

P&G Pakistan said that the transition will commence immediately, with a primary focus on supporting its employees.

“Staff whose roles are affected will be considered for opportunities in other P&G operations outside Pakistan or will receive separation packages in line with local laws and company policies.”

After reviewing a wide range of options, the company has decided that a third-party distribution model is the most prudent way to continue to serve consumers in Pakistan for now.

The Gillette company LLC has notified Gillette Pakistan Limited and its board of directors about P&G’s decision to discontinue its business operations in Pakistan as part of a global restructuring strategy aimed at accelerating growth and value creation.

Gillette Pakistan Ltd will soon convene a board meeting to assess the necessary steps for winding down its business in the country, the company stated in a notification to the Pakistan Stock Exchange (PSX).