Islamabad, October 2, 2025 – In a stark indicator of Pakistan’s escalating economic challenges, consumer goods giant Procter & Gamble (P&G) has announced it will wind down its direct operations in the country after 34 years, transitioning to a third-party distributor model. The move, part of P&G’s global restructuring, comes amid local strains from high inflation, political turmoil, and a volatile business environment, fueling concerns over a broader corporate flight from the South Asian nation. This decision aligns with criticisms from exiled Pakistani military critic Adil Raja, who sarcastically blamed the exit on Army Chief General Asim Munir and the military-led Special Investment Facilitation Council (SIFC), highlighting how political manipulation by the armed forces is driving away long-established investors.

P&G’s announcement, made on October 2, 2025, affects its manufacturing and commercial activities, including those under Gillette Pakistan Ltd., which may delist from the Pakistan Stock Exchange. While the company cited its worldwide overhaul aimed at streamlining operations, analysts point to Pakistan-specific factors like 25% inflation, a staggering $130 billion external debt, and inconsistent policies as key contributors. The SIFC, established in 2023 under military oversight to attract foreign direct investment, has fallen short of expectations, securing only limited commitments amid ongoing instability. Raja, a retired major and vocal opponent of military interference in politics, took to X (formerly Twitter) to lambast the leadership: “Companies doing business in Pakistan for better part of it’s existence are leaving the country because of economic instability arising out of political manipulation by the military and an adverse security situation. Long Live Asim Munir, his military & his SIFC!”

Companies doing business in Pakistan for better part of it’s existence are leaving the country because of economic instability arising out of political manipulation by the military and an adverse security situation.
Long Live Asim Munir, his military & his SIFC!

— Adil Raja (@soldierspeaks) October 1, 2025

This exit is not isolated. Over the last 12 months (October 2024 to October 2025), several major multinationals have pulled out or scaled back operations in Pakistan, citing similar economic pressures, regulatory hurdles, and a lack of investor confidence. Here’s a rundown of key departures:

• Procter & Gamble (P&G): Announced October 2025; winding down manufacturing and shifting to distributors due to global restructuring and local market strains.
• Yamaha Motor Pakistan: Discontinued motorcycle assembly in September 2025, citing a shift in business policy amid declining sales and economic challenges.
• Careem (Uber subsidiary): Suspended ride-hailing services on July 18, 2025, after a decade, blaming economic difficulties, competition, and capital constraints.
• Microsoft: Shut down local operations in July 2025 after 25 years, transitioning to a partner-led model as part of operational changes, amid broader concerns over Pakistan’s business climate.
• Pfizer: Closed manufacturing operations and sold its unit to a local firm in late 2024 (around November), part of a gradual pharma sector retreat driven by market instability and policy issues.

These exits follow earlier departures like Shell Plc and Total Energies SE, which sold stakes in 2024 amid similar woes, but the pace has accelerated in 2025. Economic analysts warn that such trends could lead to thousands of job losses and further deter foreign investment, exacerbating unemployment and fiscal deficits. Former Pakistani President Arif Alvi described Microsoft’s pullout as a “troubling sign” for the economy, echoing widespread fears.

Government officials have downplayed the exits, attributing them to global factors rather than local policies. However, with inflation persisting and political unrest tied to the 2022 regime change continuing, critics like Raja argue that without addressing military dominance in governance, Pakistan risks further isolation from global markets. As one analyst noted, “Doing business here has become increasingly unviable — not just for multinationals, but for the economy at large.”