Nikkei Asia, October 9 report, global personal care consumer goods giant Procter & Gamble (P&G) announced the closure of its business line in Pakistan, and instead adopt a third-party distribution model. Since entering the Pakistani market in 1991, P&G has been one of the important suppliers of fast-moving consumer goods for the middle class in Pakistan. Gillette Pakistan, P&G's subsidiary in Pakistan, stated that this move is part of P&G's global strategic adjustment, and will stop operations in Pakistan after "completing the appropriate preparation and implementation steps." In June, P&G issued a statement saying that it will cut 7,000 non-production positions over the next two years, accounting for about 15% of its total non-manufacturing employees. In July, P&G announced the termination of its distribution business in Bangladesh and switched to third-party distribution. Analysts pointed out that issues such as global tariff wars, government tax policies, high energy costs, and high interest rates have caused a sharp increase in P&G's business costs in South Asia, and the withdrawal from the Pakistani and Bangladeshi markets aims to reduce losses, expand profit margins, and promote growth. In recent years, many multinational companies have announced their exit from the Pakistani market. In November 2023, Shell confirmed its withdrawal, in April 2024 Uber stopped operations, in May Pfizer announced its exit, and in August Total Energy disclosed its exit plan. Analysts pointed out that the intensive withdrawal of multinational companies highlights the severe reality of Pakistan's overall economic environment, and also exposes the inaction of the Pakistani government in improving the economic and investment environment.
Original: www.toutiao.com/article/1845702011149324/
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