Unilever reaffirms long-term commitment to Pakistan, bets on local manufacturing

Consumer goods giant Unilever remains committed to Pakistan as a long-term manufacturing and growth market despite economic volatility that has prompted some multinational companies to scale back their presence, a senior company executive said, highlighting the company’s investment in local production and supply chain localisation.

“Pakistan is definitely one of them,” said Adil Hussain, General Manager for Beauty & Wellbeing at Unilever Pakistan, in an exclusive interview with Business Recorder, referring to the company’s priority emerging markets.

“Unilever has been in this part of the world for a long, long time, pre-partition and pre-independence,” he said. “Our Rahim Yar Khan factory is from the 1950s, maybe even older. Unilever has committed to local production across categories since the beginning.”

The remarks come at a time when several multinational companies, in recent years, have reassessed their operations in Pakistan amid persistent macroeconomic uncertainty, currency volatility and high costs of doing business.

In 2023, Shell Pakistan announced its exit with the sale of its 77% shareholding in July 2023, citing losses due to exchange rates, rupee devaluation, and overdue receivables. Procter & Gamble (P&G) in 2025 announced that it would discontinue its business operations in Pakistan as part of a global restructuring plan.

Similarly, software giant Microsoft announced it would shut down all operations in Pakistan around July 2025, closing its physical office after 25 years.

This phenomenon sparked widespread concern regarding its impact on the country’s economy, though there are also arguments that these are often strategic ownership changes rather than outright withdrawal.

However, Hussain, a marketing expert with two decades of leadership roles spanning Pakistan, the GCC, Europe and global FMCG giants, says that Unilever’s long-standing manufacturing footprint distinguishes it from companies that rely heavily on imports.

“Most of the products across the categories are actually manufactured in Pakistan,” he said. “For example, all shampoos and skincare products from my side are manufactured in Pakistan. What is imported is the raw materials.”

He said the company has been working with local suppliers to reduce dependence on imported inputs, citing progress in localising key shampoo ingredients.

“We’ve worked with local vendors and reached the stage where they now import the feedstock and process it here before supplying it to us. The same philosophy is being followed for most of the other key ingredients as well in our formulations,” he said.

However, he noted that greater localisation would require a more stable policy environment and stronger industrial incentives.

“Unfortunately, what gets in the way sometimes is the uncertain environment and discontinuity in regulations, where the infrastructure for investment by local businesses is not incentivised to make these kinds of raw materials in Pakistan.”

Hussain said the government should adopt a more strategic approach to import substitution by encouraging industries capable of both replacing imports and generating exports.

He argued that incentives should be linked to value creation rather than simply establishing factories.

“Instead of rewarding investment simply for setting up facilities, incentives should encourage outcomes such as quality production, technology transfer, localisation and exports. That ensures public support translates into tangible economic benefits.

“The cost of doing business is another critical area. Utilities, infrastructure and industrial inputs remain significant concerns for manufacturers. Governments can support industrial growth by reducing input costs, improving infrastructure and creating a more efficient operating environment,” he said.

Despite Pakistan’s economic challenges, Adil said the country is a “lucrative market” because of its demographics and consumption-driven economy.

“One of the good things about us is there are many of us,” he said. “A population of around 250 million is difficult to ignore.”

He described Pakistani consumers as resilient and receptive to innovation.

“What I’ve noticed is Pakistani consumers love trying new things. They always reward good product quality, and they are much more resilient than we think they are,” he said.

That resilience, he said, was evident during the Covid-19 and high-inflation period of 2023-24, when consumers largely stayed loyal to trusted brands despite declining purchasing power.

“We actually thought people would leave our products and downgrade,” he said. “But what we saw was people bought smaller packs or, if they could, larger economy packs. They didn’t compromise on the brand.”

Unilever adapted its product portfolio by offering multiple pack sizes across different price points while maintaining product quality.

“I will not penalise you on cash outlay, but I will give you a little less of it. I promise I will not dilute the quality,” he said, describing the company’s pricing strategy during periods of high inflation.

Looking ahead, Hussain said innovation would remain central to the company’s growth strategy, particularly as competition intensifies from local brands and digital-first skincare companies.

“Innovation has been based on the trends that consumers have been asking for, and that’s helping us stay ahead of the market,” he said, citing products such as onion-based shampoos, hair serums and hair masks developed in response to evolving consumer preferences.

While acknowledging that global companies have become more cautious toward emerging and “soft currency” markets, Hussain said Unilever continues to view Pakistan through a different lens because of its deep local manufacturing base and long-term investment strategy.

“The local presence gives you advantages. You create jobs, you create industry, and you’re empowering consumers to buy your products,” he said. “If you’re not creating those opportunities in the economy, then how are you contributing to it?”

Hussain argued that the country’s next chapter could not be written solely through policy or investment alone, but through the ability of businesses, institutions and innovators to build solutions that are relevant locally and competitive globally.