To be certain, it is not a full exit from the 240-million Pakistani consumer market but a strategic shift in how P&G operates in Pakistan. The company is scaling back its direct involvement (like owning factories and managing sales teams) to cut costs, while still keeping its products available to consumers through local partners. Yes, this is part of P&G’s broader global restructuring to boost efficiency amid slowing sales and economic pressures.
Yes, P&G will stop its local manufacturing and commercial activities in Pakistan. Yes, this means closing or selling off factories — soap and detergent plants and ending direct sales/marketing operations (In 2024, Nimir Industrial Chemicals acquired P&G’s soap manufacturing).
This is not unique to Pakistan; P&G has done similar shifts in recent years in countries like Nigeria, Bangladesh, Germany, Kenya, China and Argentina.
Instead of producing or distributing products themselves, P&G will outsource to independent local or regional distributors. These partners will import the company’s goods from other operations (eg, in neighboring countries) and handle sales, marketing and supply to stores.
Yes, products stay available: Brands like Pantene, Olay and Vicks won’t disappear from shelves; they’ll just come through this lighter-touch model, which lets P&G serve the country’s 240 million consumers without the high costs of on-site operations.
Question: Are multinational corporations (MNCs) fleeing Pakistan in droves? Answer: This narrative of exodus overlooks a fundamental truth: MNCs enter for opportunity, exit for optimisation, and are swiftly replaced by agile newcomers.
Here’s a partial list of companies that recently exited or restructured their operations in Pakistan: Telenor, Microsoft, Uber, Careem, Yamaha, Bayer and Eli Lilly.
Here’s a partial list of companies that recently entered Pakistan: Aramco (Saudi), Wafi Energy (Saudi), Etisalat (UAE), Shanghai Electric, Gunvor Group (Switzerland), BYD (China), NWTN (Dubai), Strategic Metals (US), Engil Mota (Portugal), Relational (Greece), IceWarp (Czech Republic, KfW IPEX-Bank GmbH (Germany), Euler Hermes (Germany), Exportkreditnämnden (Sweden), and Finnvera Oyj (Finland).
According to World Bank data, net foreign direct investment (FDI) inflows to Pakistan rose from $1.46 billion in 2022 to $2.57 billion in 2024 — a 76 per cent increase over the two-year period.
Remember, exits are strategic, not catastrophic. Remember, this is not unique to Pakistan — multinational corporations routinely restructure underperforming markets as part of portfolio management. Remember, such decisions are not a referendum on a country’s viability. Yes, they reflect pragmatism, not panic. And yes, FDI trends tell a tale of uptick, not retreat.
Not to forget that Pakistan’s 240-million strong population, strategic Eurasian location, and untapped resources in renewables, minerals and tech ensure that for every door closing, several open wider.
The writer is a columnist based in Islamabad.
