Pakistan Business Environment: The situation in Pakistan is getting worse. Pakistan’s weak economy is directly impacting the business there, and is falling on foreign companies. In the latest case, American Consumer Product Company Procter and Gambal have announced to stop their manufacturing and direct business operations. The company announced the global reorganization program a few months ago.
The company, which manufactures Tide Detergent and other household items, said in a statement that it would discontinue manufacturing and commercial activities in P&G Pakistan as well as its Resour’s Department Gillet Pakistan Limited.
Now the company will sell its products only through local distributors. This decision is part of the company’s global cost-cutting strategy, but Pakistan’s weak economy such as expensive electricity, decreasing demand and dollar deficiency is also considered to be the main reason. Also, Gillet Pakistan is also on the verge of closure. Companies like Shell, Pafizer and Telenor have already left the country, indicating Pakistan’s falling business credibility.
P&G entered Pakistan in 1991 and became one of the country’s top consumer-dominance companies, whose brands such as pamphors, safers, aerial, head and shoulder and pantin became famous from house to house. It expanded its local business by acquiring a soap plant in 1994 and a detergent plant in 2010.
