Karachi – Gillette Pakistan Limited announced on Thursday that its parent company, Procter & Gamble (P&G), will discontinue its business operations in Pakistan as part of a global restructuring plan. The company disclosed the decision in a notice to the Pakistan Stock Exchange (PSX).

“We will continue to operate the business in the ordinary course until the process is complete, which may take several months,” P&G said in a statement, adding that transition planning would begin immediately “with a focus first on P&G people.”

According to the notice, “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 organization choices to accelerate growth and value creation.”

The announcement follows similar exits by major international companies such as Shell, Pfizer, and Careem, prompting renewed debate about Pakistan’s economic climate and regulatory challenges. However, analysts emphasize that these companies exit aligns with a broader global restructuring strategy rather than being Pakistan-specific, mentioning that P&G is also scaling back operations in Russia, China, and Venezuela.

P&G, an American multinational founded in 1837, is known for iconic brands such as Pampers, Tide, Gillette, and Head & Shoulders. The company said it would wind up its manufacturing and commercial operations in Pakistan but continue serving local customers through third-party distributors.

The market reacted positively to the news, with Gillette Pakistan Limited’s share price closing at Rs233.31, up Rs21.21 (10%) on Thursday.

Earlier this year, P&G announced plans to cut around 7,000 jobs globally, about 15% of its non-manufacturing workforce, as part of its cost-efficiency drive. At a Deutsche Bank conference in Paris, executives revealed that the company would exit certain product lines and markets to focus on high-value categories and strategic growth regions.

Former Pakistani ambassador to the U.S., Hussain Haqqani, criticized the government for failing to retain foreign investors. “The people were told that a river of international investment would flow in Pakistan, but now Shell, Pfizer, and P&G are leaving after years of operations,” he posted on X.

Economists, however, have cautioned against alarmism, urging the government to use such exits as an opportunity to strengthen domestic industries and improve the business environment. They argue that Pakistan must pivot toward structural reforms and self-reliance rather than dependency on multinationals.

Finance Minister Muhammad Aurangzeb, in a recent interview with Bloomberg, reinforced this view: “Every single industry in Pakistan has to have an export component because it’s the only way we’re going to get out of this boom-and-bust cycle.”

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Despite foreign company departures, Pakistan’s macroeconomic indicators have shown signs of stabilization. Global rating agencies, including S&P Global, Fitch, and Moody’s, have upgraded Pakistan’s outlook this year, citing fiscal discipline and improved revenue performance. Investor confidence has also grown, with Pakistan’s dollar bonds yielding 22% returns and the benchmark stock index surging 44%, ranking it among Asia’s best performers.

While P&G’s withdrawal marks the end of an era for one of the world’s largest consumer goods firms in Pakistan, analysts say it also offers a chance to redefine the country’s economic resilience and open space for local enterprise growth, a test for Pakistan’s next chapter of industrial self-sufficiency.