CORPORATE WINDOW: Taking a long position on Pakistan

Expecting the stability of a developed market and growth rates of a developing market is unreasonable; it is a high risk, high return scenario,” says Unilever’s Chairman and CEO Amir Paracha in an interview with Dawn. Companies that withdraw during challenging periods often miss out on substantial opportunities, Mr Paracha argues, citing examples of international banks and foreign pharmaceutical companies. As these firms retreated, local companies thrived, filling the gaps left behind. While this shift may have benefited the local economy, it has also led international companies to forgo potential long-term gains. Productivity gains of a fair living wage “In 2014, the attrition rate among Unilever salespeople was so high that the entire sales force was turning over every 2.5 years,” recalls Mr Paracha. They were paid the minimum wage of Rs14,000 at that time, which meant that a pay bump as trivial as Rs500 incentivised them to shift jobs. To retain experienced sales staff, Unilever promised to double their salaries within three years, a commitment they fulfilled. The attrition rate came down to four per cent and sales doubled as productivity shot up. When Mr Paracha came to the helm of Unilever, a mere month before the pandemic, he carried the story with him.