Multinational consumer goods giant Procter & Gamble (P&G) has announced a major shift in its business strategy for Pakistan, deciding to shut down its manufacturing operations and move to a third-party distributor model.
The transition will be gradual and may take several months to complete.
P&G announces transition to distributor model
In a statement, the company said it is adopting a new business and operating model in Pakistan, under which the manufacturing and trading activities of P&G Pakistan and Gillette Pakistan Limited will be phased out, and the company move to a third-party distributor model.
Despite the shift, P&G assured that Pakistani consumers will continue to have access to its products, which will now be supplied through other regional operations.
Manufacturing and trading to be terminated
As part of the transition, P&G confirmed that both P&G Pakistan and Gillette Pakistan Limited will gradually end their manufacturing and trading operations in the country. The company said business will continue as usual until the full process is completed.
Employees to be offered support
The company also addressed concerns about its workforce, saying employees whose jobs are impacted will either be provided opportunities in P&G’s overseas operations or offered severance packages in line with local labour laws and P&G’s internal policies.
Business to continue through regional channels
While local operations wind down, the company emphasized that the decision will not affect consumer access to P&G’s portfolio of products. Brands will continue to be available in Pakistan through regional distribution channels once the transition is finalized.
