Pakistan

Social Commitment Report 2008

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Our Story

This Report provides an insight into P&Gs commitment to social development in Pakistan.

P&Gs Purpose is to improve the everyday lives of the worlds consumers. We fulfill thisPurpose in many ways: through P&G brands, first and foremost, but also through oursupport of humanitarian, educational and social cause efforts.

P&G Pakistan has initiated and runs several programs focused on improving the livesof Pakistanis, especially children, teens and young mothers. Our areas of concerninclude health and hygiene awareness, education and female empowerment. All inall, our social community programs have helped improve the lives of about 5 millionPakistanis in 2008 - 2009.

Two Sides To Every Story

Our social investments are focused on improving the

lives of children in need through LIVE, LEARN and

THRIVE, our far-reaching global cause.

LearnLive Thrive

At P&G, we believe that there are two sides to every story: P&G contributes tosustainable development through both - what we do and how we do it.

What we do is provide branded products and services of superior quality and valuethat improve the lives of the worlds consumers via health, hygiene or convenience.

How we do it includes addressing any environmental and socioeconomic issuesassociated with our products and services.

As a result, two sides emerge for the same picture: we hope that consumers whobelieve in P&Gs commitments will reward us with leadership sales, profit and valuecreation, allowing our employees, our shareholders and the communities in whichwe live and work to prosper.

Contents Message by Country Manager: Qaisar Shareef Company Overview Who are we Sustainability at P&G Our Commitment

Our Programs :

LIVE Childrens Safe Drinking Water Program Khwabon Say Aagay Campaign Ariel Help the Needy Pampers Programs Safeguard Sehat-O-Safai Program Always Education Programs Global Handwashing Day

LEARN Keeping the HOPE Alive with HOPE Safe Schooling for Building Futures with READ Foundation

THRIVE P&G Home at SOS Childrens Villages Volunteerism at P&G

Our Employees Valuing Our Stakeholders

Pakistan

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20212122283031

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P&G strives to improve the everyday lives of the worlds consumers in many ways, through P&G brands, andthrough the support of social causes. While we have made a difference in the causes we support, we believethat we can make an even greater, more enduring impact by focusing on a consistent cause where theneed is great and there is a clear fit with P&G strengths, brands and current programs.

With that in mind, P&G has committed to focus on the development of children in need through our globalcause, P&G Live, Learn and Thrive which enables us to meet the needs of children in our diverse communitiesaround the world. Through our activities, we contribute to the economic and social well-being of a rangeof communities in which we operate and more widely, to regional, national and international development.

Besides corporate financial support, employee passion is apparent from the fact that P&G Pakistan employeesremain active participants in our corporate efforts, through volunteering their time in many ways. P&Gvolunteers undertake interactive visits to Pakistans oldest school for the hearing and vision impaired - IdaRieu, take students at P&G HOPE schools to guided tours of educational places and have personally paintedthe P&G-READ schools in the earthquake affected region of Muzaffarabad.

P&G is also committed to tackling one of the biggest potential problems faced by human beings even inthis modern age - the lack of access to clean drinking water that threatens the lives of billions of people

for distribution throughout the world.

P&G has been in Pakistan since 1991 and since then, P&G has grown to be one of the leading consumergoods companies in the country, currently serving Pakistani consumers with premium quality brands. Globally,we have a 172 year old history and presence in over 80 countries worldwide. Yet, we share a commonvision around the globe: P&G is committed to giving back to communities where we operate. In this area,as in every facet of our operations, we aim to meet and exceed expectations.

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we delivered our one-billionth liter of clean drinking water. PUR is manufactured at P&G Pakistans Hub plant

Introduction

Qaisar Shareef- Country Manager, P&G Pakistan

around the globe. P&G is committed to provide adults as well as children access to safe drinking water. Thisyear, through the distribution of PUR water-purifier packets, with the help of our network of over 70 partners

What began in 1837 as a humble soap and candle companyin Cincinnati, Ohio, has now become one of the leadingconsumer products companies in the world. Procter & Gambleis deeply committed to providing its consumers with productsand services of superior quality and value with one guidingpurpose in mind: to touch consumers lives with brands thatmake life a little better everyday.

P&G markets more than 300 brands worldwide in over 180countries and employs about 138,000 people.

Company Overview

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Brands such as Ariel, Pampers, Always, Pantene, Safeguard andHead & Shoulders have become household names in Pakistan,thus securing the trust of Pakistani consumers and inspiring ourteam to continue to deliver outstanding brands and programs.

P&G Pakistan constantly endeavors to go beyond its brands inorder to help the communities where we operate become stronger,healthier and more informed.

Today in Pakistan, P&G markets manypremium quality brands that help improvethe lives of our consumers everyday.

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head & shoulders

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safeguard

always 3

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4P&Gs journey in Pakistan

5Pakistan

New third party

logistics warehouse

with Agility

Our PurposeWe will provide branded products and services ofsuperior quality and value that improve the lives ofthe worlds consumers, now and for generationsto come. As a result, consumers will reward us withleadership sales, profit and value creation, allowingour people, our shareholders, and the communitiesin which we live and work to prosper.

Our ValuesP&G is its people and the values by which we live.We attract and recruit the finest people in theworld. We build our organization from within,promoting and rewarding people without regardto any difference unrelated to performance. Weact on the conviction that the men and women ofProcter & Gamble will always be our most importantasset.

Who are we?

P&G ValuesIntegrity

LeadershipOwnership

Passion for WinningTrust

P&G Brands and P&G People are thefoundation of P&Gs success.

P&G People bring the values to lifeas we focus on improving

the lives of the worlds consumers.

Consumers

P&GPeople

P&GBrands

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Our Principles

Mutual Interdependency is a Way of Life

We Show Respect for All Individuals

We are Externally Focused

We Seek to be the Best

Innovation is the Cornerstone of Our Success

The Interests of the Company and the Individual are Inseparable

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We are Strategically Focused in Our Work

We Value Personal Mastery

We are committed to helping solve the worlds sustainabilitychallenges. We do this through product innovations, improvingthe environmental profile of our operations and through ourcontributions to help children live, learn and thrive. Companieslike P&G can be a force for good in the world. This is a responsibilityand an opportunity that we embrace.

A.G. Lafley

Chairman of the Board,President & Chief Executive

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9Pakistan

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Sustainability At P&GSustainable development is a simple idea - ensuring a better quality of life for everyone, now and for

generations to come.*

At P&G, we view sustainability as a significant responsibility - and a continual source of opportunity. So fromour products to our operations, we embed sustainability into everything we do.

P&G is honored to have been selected in 2009 as one of the 100 Most Sutainable Corporations in the World.**

P&G incorporates sustainability into products, packaging and operations through 5 clear sustainability strategies:

ProductsDelight the consumer with

sustainable innovations thatimprove the environmental

profile of our products.

OperationsImprove the

environmental profile ofP&Gs own operations.

Socail ResponsibilityImprove childrens livesthrough P&Gs social

responsibility programs.

StakeholdersShape the future by working

transparently withstakeholders to enable

continued freedom to innovatein a responsible way.

EmployeesEngage and equip all P&Gersto build sustainability thinking

and practices into theireveryday work.

**Corporate Knights Inc. and Innovest Strategic Value Advisors Inc.*UK Government Report from Department for the Enviroment,Transportation and the Region. 1998

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2012Goal

By 2012 P&G will develop and market at least$50 billion in cumulative sales of SustainableInnovation Products, which are products witha significantly reduced environmental footprintversus previous or alternative products.

2012Goal

From 2007 to 2012 P&G plants will deliver anadditional 20% reduction (per unit production) inCO2 emissions, energy and water consumptionand disposed waste from P&G plants, leading to atotal reduction over the decade of at least 50%.

Manufacturing Material Flows 2007-2008

Mechanical systems have been constantly developing and changing to better satisfy building occupants.However, data from the U.S. Energy Information Administration reveals that as mechanical systemsimprove indoor conditions, they are simultaneously contributing to the demise of our outdoor climate.Buildings are responsible for almost half (48%) of all greenhouse gas (GHG) emissions annually, andover 60% of those emissions are related to mechanical systems. 76% percent of all U.S. electricity

goes to supply the building sector.

In the upcoming P&G Plant at Port Qasim Authority, sustainability will be incorporated by providinga productive, pleasing work environment and illustrating how buildings can be designed to reducegreenhouse gas emissions. Responsible, innovative solutions for conditioning and ventilating indoor

spaces will take on the challenge of promoting healthy indoor and outdoor environments.

Sustainability at the new P&G Port Qasim Laundry Plant

The Ariel Cold Water Campaign came to Pakistan in 2008.Along with key product benefits of superior cleaning, the product offers energysavings and emphasizes supporting the environment in a sustainable way throughthe use of less energy while washing.

RAW MATERIALS&

PACKAGING

MATERIALSFOR

RECYCLING/REUSE 2.30%

NON-HAZARDOUSSOLID WASTE

1.29%

HAZARDOUSSOLID WASTE

0.13%

AIREMISSIONS

0.07%

WATEREMISSIONS

0.09%

FINISHEDPRODUCT

96.12%

ENERGY75.9

million gigajoules

Products Operations

Assessing impactComprehensive tools

Managing innovation sustainably begins with the use of

comprehensive analysis tools. One such tool, Life Cycle

Assessment (LCA), generates a complete environmental

footprint, extending beyond carbon impact to measure

total energy and water use and waste production. Also

included are the impacts of consumer use of our products,

as well as all emissions into the air, water and land. This

detailed review lets us pinpoint areas where our innovation

efforts can be most effective.

Finding opportunity:Laundry energy usage

Our life cycle assessment of laundry detergent revealed

that one step consumed far more energy than any other:

the heating of wash water during its use in the home. As

such, this step clearly offered the biggest opportunity for

energy reduction.

Field tests predicted that a family of four in the UK could

reduce its overall household electricity consumption by

3% by reducing its wash temperature from 43.5C to 30C.

So our Ariel Cool Clean technology - which offers strong

cleaning performance at lower temperatures - presented

a promising opportunity for energy savings.

Sustainability in Ariel In 2008 alone, P&G has reduced water consumption by 7%, energyusage by 6%, and CO2 emissions by 8%.

The P&G Hub Plant has built and runs a waste treatment facility designed to protect the environment.This state-of-the-art facility disintegrates solids, disease-causing organisms and other pollutants found in

effluence before it is discharged into the drainage network.

Waste Treatment at P&G Hub Plant, Balochistan

P&G is wholly committed to improving the lives of consumersin Pakistan and around the world.

We focus our social investments and employee engagementon a single global cause: P&G Live, Learn and

Thrive. Through our global cause, we are improving lifefor children in need. In fact, because of this focus, P&G hasalready improved life for more than 150 million children in

need around the world.

Our Commitment toSocial Responsibility

Along the path of P&Gs journey in Pakistan, P&G has become inseparable

from the Pakistani consumer. P&G has initiated many corporate-funded

and cause-related marketing programs and with the help of our partners,

we have impacted the lives of millions of Pakistanis. This is the commitment.

This is P&G.12

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Safe drinking water,nutrition, and hygieneprograms are helpingchildren get off to a

healthy start.

LiveSchools are being builtand supplies provided

to children lackingaccess to education.

LearnSkills for life are being

nurtured, includingself-esteem and

independent-livingskills for disabled

children.

Thrive

P&G Live, Learn and Thrive comes to lifethrough more than 100 programs in over 50countries around the world. P&G is improvinglife for millions of children every year throughLive, Learn and Thrive:

To learn more about Live, Learn and Thrive visit:http://livelearnthrive.pg.com

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P&G is committed to social responsibility. We arealways seeking ways to better integrate economicprogress, social development and environmentalconcerns to ensure a better quality of life now andfor future generations.

P&G has initiated and been involved in a number ofcommunity programs that benefit individuals in needwhilst providing employees the opportunity to takepart in community-building events.

Caring for the Community throughSocial Responsibility

Progress Since July 2007

Goal - By 2012: Enable 300 million children to Live, Learn and Thrive.Deliver 3 billion liters of clean water through our Childrens Safe

Drinking Water Program.

LIVE, LEARN and THRIVENumber of Children Reached 60 Million

CHILDRENS SAFE DRINKING WATERLiters of Clean Water Delivered to date 1 BillionDays of Disease Prevented till 2008 18 MillionLives Saved till 2008 2,442

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For you they may haveforgotten how to smile...Ranking 136th out of 177 on the United Nations HumanDevelopment Index1, Pakistan has a population ofapproximately 166 million, of whom more than half arechildren2. Infant mortality stands at 73 per 1,000 live births,and neonatal mortality at 53 per 1,000 live births3.

The main causes of death in children are: diarrhea,malnutrition, acute respiratory infections and vaccinepreventable diseases. Vaccination coverage rates areimproving but still less than they should be. 4 in 10 childrenare missed opportunities. Pakistan ranks 3rd in the worldfor neonatal tetanus4.

In short, some of the major problems being faced by thehealth sector in Pakistan are:

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1 Human Development Report, Pakistan. 2007/2008. "http://hdrstats.undp.org/countries/country_fact_sheets/cty_fs_PAK.html"2 Population Census Organisation, Government of Pakistan, Department of Statistics Division.3 Unicef Country Statistics for Pakistan.4 Assessment of Health Status & Trends In Pakistan (Agha Khan University Hospital).5 Health Situation in Pakistan : Leprosy, TB and Blindness Welfare Association of Pakistan.

Inadequate primary health careHigh rate of population growthPrevalence of communicable diseasesInadequacy of funding and trained manpowerLack of mass awareness in health5

For us they are rememberinghow to smile again.

Live

The concept of LIVE within our LIVE, LEARN, THRIVEplatform aims to help ensure a healthy start for those

children who are in need by:

Helping prevent disease in Pakistan with the provisionof preventative health products or support for

technologies such as Immunizations/Vaccinations andour Safe-water technology.

Providing access to preventative health services.

Educating chidren and mothers on adopting healthyhabits in order to enable children to live

disease-free, healthy lives.

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Live

More than 4,000 children die everyday from diseases caused by drinking unsafe water.

The Childrens Safe Drinking Water program is P&Gs corporate signature program forLive, Learn and Thrive. The program consists of not-for-profit social and emergency reliefwork to provide safe drinking water to the people who need it most. The goal is toreduce sickness and death in children that results from drinking contaminated water.

P&Gs lifesaving technology uses small packets or sachets to disinfect water. Each sachetworks like a mini-water treatment plant removing dirt, cysts and pollutants while killingbacteria and viruses in contaminated water in less than 30 minutes, ten liters at a time.

The key to the program is building strong partnerships around the world. Our partnersuse social marketing techniques to build and sustain the introduction of the PURtechnology. In Pakistan, Greenstar Social Marketing leads the Childrens Safe DrinkingWater program, and has deployed over 9 million sachets of PUR over the past year. Theprogram initially started with two countries in 2004, Haiti and Uganda. Since then, it hasbeen launched in 8 additional countries: Kenya, Malawi, Dominican Republic, Pakistan,Ethiopia, Congo, Botswana and Indonesia.

P&Gs global commitment to this program has seen the establishment of a PUR plant inHub, Pakistan; the first of its kind in the world. It provides people access to safe drinkingwater and is able to export millions of liters across the globe.

Thus far, this P&G technology has provided more than a billion liters of clean drinking water.

Childrens Safe Drinking Water Program

More than

lives saved2,442

Our goal is toprovide up to

3 billionliters of clean drinking

water by 2012globally.

PUR is distributed worldwide from the P&G Pakistan Hub Plantand is exported to Denmark, Australia, India, Chad, Congo,UAE, Dominican republic, Malawi, Ethiopia, Uganda, Kenya,

Indonesia and Haiti.20

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Live

Ariel - Help The NeedyThe Ariel Help the Needy program was designed to helpthe most needy children of Pakistan. Medical equipmentwas donated to 30 institutions for disabled children allover Pakistan based on empty Ariel bags collected duringthe promotion period. The program was held duringthe period of Ramadhan and was extended for twoadditional weeks due to the overwhelming success ofthe campaign.

The Khawabon Se Aagey campaign was launched by P&Gin December 2007 in partnership with the Pakistan MedicalAssociation. It aimed to help save the lives of newborn babiesby providing lifesaving equipment to hospitals across Pakistan.

According to the Pakistan Millennium Development report2005, neonatal mortality in Pakistan is 53 per 1000 live births,which can be considered amongst the highest in the world.It is estimated that around 300,000 infant deaths including160,000 neonatal deaths can be prevented annually in Pakistan.The campaign ran from December 2007 to March 2008 andthrough this initiative, a portion of the sales proceeds fromP&G brands was donated to provide life saving equipment fornewborn babies to 22 hospitals across Pakistan. Trainingprograms were also conducted by qualified senior pediatriciansfor hospital staff including doctors, nurses and midwives onneonatal resuscitation as well as the effective usage of thedonated equipment.

Khawabon Se Aagey Campaign

Neonatal mortality

in Pakistan is 53 per1000 live births

- Pakistan Millennium DevelopmentReport 2005

KARACHI

LAHORE

NAWABSHAH

HYDERABAD

LARKANA

MIRPURKAS

KASUR

MULTAN

GUJRANWALA

BAHAWALPUR

QUETTA

KOHAT

PESHAWAR

MUZAFFARABAD

MARDAN

KHUZDAR

MANSHERA

DERA MURAD JAMALI

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Pampers

Pampers as a brand is committed to caring for the

happy and healthy development of babies throughout

Pakistan. The Pampers dedicated team of professionals

educates new mothers in hospitals about the nutrition,

immunization and development needs of their new-

borns, whilst striving to work towards improving baby

health-care practices across Pakistan.

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Hospital Education Program

In December 2000, Pampers launched its Hospital

Education Program, which is a year long program

reaching mothers of newborns in hospitals with the aim

of creating awareness of key baby care issues. To date,

the Pampers Hospital Education Program has reached

2.3 million mothers across Pakistan.

Pakistan is a country where 85%+ births take place athome. In order to reach mothers in their homes, the PampersBaby Care Clinics were established in 2003 with the aim of

providing access to education about Baby Care to mothers.

The Pampers Baby Care Clinic visits neighbourhoods across

Pakistan, providing mothers relevant information about healthy

baby development. This enables mothers to obtain the necessary

skills to support the healthy growth of their babies. This initiative

has reached over 3.3 million mothers in Pakistan to date,

which makes P&G proud to have launched this unique effort.

BabyCare Mobile Clinics

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Live

The Pampers World of Babies carnival,held in November 2007, was a unique andfun-filled approach to create awarenessabout baby care amongst parents. Parentsvisited a larger than life world, which gavethem the opportunity to see the world asa baby sees it. This was done so that theparents could revisit what it is like being ababy and experience the challenges facedby infants as they learnt to walk holdingthe hands of their mothers for the firsttime. Parents were also offered freecheckups for their children.This helped tobuild a better understanding of a childsneeds for parents and facilitated thepotential for babies to grow and developin a healthy manner.

This program touched over 20,000 parentsand children across Karachi, Lahore andIslamabad.

The Pampers - Sahara For Life campaign was initiatedin 2007 by Pampers in partnership with Abrar-ul-Haq and Sahara for Life Trust, with a vision toimprove child health in Pakistan.

For every pack of Pampers bought in Ramadhan,life-saving medicines were donated to Sahara forLife for administration to children in need at theSahara for Life Hospital at Narowal in Punjab.

This campaign resulted in the donation of over

1 million doses of life saving medicines.

Sahara For Life Campaign

World of Babies

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SalmaHayek(Oscarwinner &mother)

Salma Hayek (Oscarwinner & mother), asGoodwillAmbassador forthe campaign

SalmaHayek(Oscarwinner &mother),asGoodwillAmbassador for thecampaign

Pampers UNICEF One Pack =One Vaccine Campaign

Pampers UNICEF One Pack= One Vaccine Campaign

So far, more than 50 million vaccinations have been funded. P&G ultimately hopes to eradicate maternal andneonatal tetanus through this effort, saving tens of millions of lives.

Pampers partnered with UNICEF to launch a worldwide initiative to eliminatematernal and neonatal tetanus (MNT) in developing nations. The vision ofthis program was to donate vaccinations to be administered to mothers andbabies through the sales of Pampers packs worldwide.

Initially launched in 2006 in the UK, the program expanded quickly to othercountries and has since raised over 50 million vaccines for UNICEF to date.In 2008, the campaign expanded worldwide to regions such as Pakistan andArabian Peninsula, spear-headed by Salma Hayek (Oscar winner & mother),as Goodwill Ambassador for the campaign. The 2008 campaign is part ofa global, multi-year, multi-million dollar commitment to UNICEF that issupported by Pampers mothers and fathers, one pack at a time.

In Pakistan:

Pakistans leading film actor Shaan joined hands with Pampers to launch thiscampaign in Pakistan in 2008. For every Pampers pack purchased in Ramadhan,one vaccine was donated to enable UNICEF to contribute to the provisionof a life-saving tetanus vaccine to a mother in Pakistan.The Pampers - UNICEFcampaign has so far donated approximately 800,000 vaccines to help savethe lives of newborn babies and mothers across Pakistan.

Pampers has committed to helping UNICEF and WHO raise over 200 millionmore vaccines globally which will help UNICEF in supporting countries toeliminate tetanus across the world.

Pampers - UNICEFOne Pack = One Vaccine Campaign

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As a Pakistani and a parent, I feel that it is my duty to

help raise awareness of this terrible disease that claims

the lives of Pakistani babies. It is an honor for me to

team up with Pampers and UNICEF to helpeliminate Tetanus as this is not only aglobal concern but is also a grave and tragic reality for

many of us in Pakistan. With the help of UNICEF and

Pampers, several countries have been able to eliminate

this silent killer and I sincerely hope that we willbe able to drive Pakistan closer to this goal.

As a Pakistani and a parent, I feel that it

is my duty to help raise awareness of this

terrible disease that claims the lives of

Pakistani babies. It is an honor for me to

team up with Pampers and UNICEF to help

eliminate Tetanus as this is not only a global

concern but also a grave and tragic reality

for many of us in Pakistan. With the help

of UNICEF and Pampers, several countries

have been able to eliminate this silent killer

and I sincerely hope that we will be able to

drive Pakistan closer to this goal.

-ShaanPakistani Film Star

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SafeguardSehat-o-Safai

Program

Regularhandwashing with

soap is proven to reducethe incidence of diarrhea,

cold, cough, pneumonia andskin infections by upto

50%*Every year

250,000children in Pakistandie of diarrhea.**

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Safeguards mission is to instill outstanding hygiene habitsin children. In 2004, Safeguard launched its School EducationProgram, called Sehat-o-Safai, in partnership with PakistanMedical Association (PMA) and the Infectious Diseases Societyof Pakistan (IDSP).The aim is to empower and arm todayschildren with knowledge about health and hygiene andcreate awareness about proper handwashing techniques.

**Study by USAID, Public Radio International.http://pri.org/health/global_health

*Karachi Soap Study, CDC, HOPE, JAMA, 2004 -Impact of Handwashing on Childhood Diarrhea

Live

SafeguardSehat-o-Safai

Program

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Having empowered over 5 million children in over 14,000schools across Pakistan, it is the single largest healthand hygiene education program in Pakistan.

Safegaurd also reaches doctors with the health and hygienemessage in partnership with Bayer Schering Pharma.

To date

15,500Health Days celebrated

in schools

nationwide!

Everyday

670,000children are absent fromschools across Pakistan

due to illnesses.***

***P&G Survey of Pakistani schools

5 million children

educated by

Safeguard in the

last 5 years!

Always honors the sacred bond between mothersand daughters and seeks to educate them on howto enable girls to cope with the pressures anddemands of growing up.

The Always School Education Program AGAHI, is aNation-wide Education Program conducted inpartnership with the World Population Foundation(WPF) and the Society of Obstetricians & Gynecologistsof Pakistan (SOGP). Launched in September 2003,the program runs in thousands of schools and collegesfor girls in Pakistan, and has educated 4,000,000girls about good health and hygiene habits importantfor young girls.

The Always Mothers Education Program has educatedover 600,000 mothers on how to help their daughterscope with the changes they face as they grow up.

Always Education Programs

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Global Handwashing DayLiveGlobal Handwashing Day, celebrated on October 15th, is a

global awareness effort, attempting to educateindividuals on the significance of handwashing with

soap as an effective measure to prevent diarrheal

diseases from which close to 250,000 childrendie in Pakistan alone; and pneumonia,which affects nearly 5-10% of all children

in developing countries.

Global Handwashing Day was thecenterpiece of a week of activities that

mobilized millions of people in morethan 20 countries across all five

continents to wash their hands withsoap and to raise awareness about

handwashing with soap.

P&Gs Safeguard team was proudto be selected to lead Global

Handwashing Day in Pakistan in 2008.

For Global Handwashing Day, Safeguard, in partnership with theMinistry of Environment of Pakistan and UNICEF Pakistan, mobilizedand activated over 50 public and private organizations to celebratethis day in Pakistan. These organizations included the World HealthOrganization (WHO), the Ministry of Health (Government of Pakistan),Greenstar Social Marketing, Pakistan Medical Association, Infectious Diseases Society of Pakistan, Indus Resource Center, Bayer ScheringPharma, HOPE, READ Foundation and many more.

Organizations around Pakistan endeavored to mobilize efforts tocreate awareness of handwashing with soap and to enable childrento wash hands on this day. Through this initiative, Safeguard, workingwith its partners, enabled over 700,000 children to wash their handswith soap and imparted health and hygiene education to them.These children pledged to adopt more healthy and hygienic habitsin their lives.

We are proud to be associated with P&Gs Safeguard as aleading partner in Global Handwashing Day. In the long term,GHD can become a powerful platform for advocacy aimed atpolicy makers and key stakeholders and an occasion for concretepublic commitment to actions that will spur behavior change.We would like to thank the P&G Safeguard team for leadingthis initiative in Pakistan, and the Safeguard brand for touchingand improving the lives of thousands of Pakistani children.Mr. Jawed Ali Khan, Director General, Ministry of Environment.

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Safeguard School Program has empowered more than 5 million schoolchildren between the ages of 6 and 11 years with hygiene education over

the last four years. To date, this program has covered more than 10,000

schools in 100 cities of Pakistan.Safeguard School Program has empowered

more than 5 million school children

between the ages of 6 and 11 years with

hygiene education over the last four years.

To date, this program has covered more

than 10,000 schools in 100 cities of

Pakistan.

At P&G Pakistan, we are devoted to helping

improve lives in every way that we can: whether

it is through building community development

programs within our marketing campaigns or

sponsoring programs with partner organizations

to provide critical interventions to help nourish

and nurture children in need.

- Najia Amin, Manager External RelationsP&G Pakistan

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For you they may besitting idle...

The picture of literacy in Pakistan is grim. The overallliteracy rate is 49%, while only 36.8% of girls are literate1.

Literacy and primary school enrolment rates in Pakistanhave shown improvement during the last five years butthey are still low compared with other countries inthe region.

A number of studies of the education system in Pakistanhave revealed that the quality of education being providedby primary schools in the country is poor, with manyschools lacking adequate teachers and resources2.

Poverty is also a big hurdle in education. According toUNICEF, 17.6% of Pakistani children are working andsupporting their families. Indeed, children working asdomestic help is a common phenomenon in Pakistan, andthis sector employs more girls than boys3.

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Learn

1 Ministry of Education - Government of Pakistan

2 Federal Bureau of Statistics - Government of Pakistan

3 Alarming Situation of Education in Pakistan Aamir Latif, UNESCO

For us they are working hardfor the future.

Learn

The concept of LEARN seeks to enable children tolearn by providing access to places and tools for learning.P&Gs aim is to provide children with access to education

through a safe and functional schooling experience.LEARN programs help to build and maintain educationalfacilities, train teachers and provide health and hygiene

education programs to children from many differentbackgrounds.

P&G Pakistan continually strives to give children theopportunity to have access to quality education by

partnering with development organizations. We aimto develop sustainable programs that seek to create astable and nurturing environment for children to learn.

In Pakistan, P&G has provided access to education tothousands of children ranging from large urban cities

to the isolated northern reaches of the country.

It is our enduring commitment to enable children fromall walks of life to create a prosperous and flourishing

future for themselves.

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Learn

Keeping the HOPE Alive is an initiative in which P&G Pakistan has partnered with Health Oriented Preventive Education (HOPE),to provide informal education to children in their own neighborhoods for free. Through Keeping The HOPE Alive, P&G Pakistanhas set up a system of 60 informal schools spread across Karachi and Thatta, providing primary education in the homes of trainedteachers. More than 2000 children are studying in these P&G Hope Schools.

What is the program?

Objectives: Setting up and fully supporting P&G Hope Primary Home Schools in Sindh - to fight illiteracy by

providing quality education to children in their own neighborhoods for free.

Ensuring high retention rates at formal Hope Schools, through P&G employees sponsoring a childs

education for a year.

Enabling provision of better education to the P&G-HOPE students through regular teacher trainings

Enabling children to thrive in life through regular educational and fun-filled out-of-class trips and by

building the childrens confidence through regular interaction with P&G employee volunteers.

Keeping the HOPE Alive

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Learn

P&G launched its adopt-a-child campaign with HOPE whereby employees can help improve student retention rates at HOPE formalschools. Employees adopt HOPE children who cannot afford even their basic education expenses by sponsoring the cost of theireducation for a year. In 2006, 30 students were sponsored by P&G Pakistan employees.

Adopt - A - Child Program

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Teachers TrainingP&G Pakistan has continuously supported the training of HOPE teachers through reputed institutes. Recently, all the teachers of the P&G-HOPEHome schools were trained by The Citizens Foundation, a not-for-profit organization with a wide network of schools across Pakistan. Thiswas a custom-designed TCF training, focused on improving the multi-grade teaching system integrated within the P&G-HOPE Home schools.

Keeping the HOPE Alive

Learn

Naila, Tahira and Rubeena three bright and talented girlshave passed their matriculate exams from P&G HOPE HomeSchools and now run their own P&G-HOPE Home Schools inBilal Colony and Manzoor Colony in Karachi.

HOPE Accomplishments

Health Oriented Preventive Education...

Safe Schooling for Building Futureswith READ FoundationP&G Pakistan partners with READ Foundation (Rural Education and Development Foundation)to build seismic compliant schools in the earthquake-affected areas of Azad Jammu andKashmir, under a partnership titled Safe Schooling For Building Futures.

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Objectives:To allow children build an individual social, emotional and educational base

To build seismic compliant schools in the quake affected areas of Azad Jammu andKashmir to provide quality education to the afflicted children in a safe and supportiveenvironment

To award scholarships to children in need

To enable P&G employees to actively contribute to the developmentof P&G-READ children

P&G Pakistan and READ Foundation have proudly established one of the largest schools inAzad Kashmir at Muzaffarabad, educating more than 1,700 students and awardingscholarships for orphans. In 2008, P&G inaugarated a second school with READ Foundationin the remote village of Lamnian near Muzaffarabad benefitting another 250 students.

Schools Established So Far

Learn

Safe Schooling for BuildingFutures- Accomplishments so farThe talented children studying at P&G-READFoundation schools have time and again deliveredexcellent academic results in national examinations:

In 2007-08, the total pass percentage for the students at P&G - READ Foundation school at Gojra was 97%.The school received 4th position overall in Azad Kashmir, based on the Cumulative GPA of studentsin 2007.

Elimination of dropouts: No students dropped outof school during 2007-08.

206 orphan students are receiving free educationat both P&G-READ Schools.

325 students have graduated from the P&G-READFoundation secondary school at Gojra to date: these children are now pursuing their undergraduate studies in different colleges and universities of the country.

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P&G-READ Foundation:Future OutlookIn 2009, P&G plans on further building this partnershipwith READ Foundation by establishing another Primaryschool in a low-income neighborhood of Islamabadat Bhara Kahu. The school will provide primary leveleducation to 225 disadvantaged boys and girls andwill be fully equipped with furniture, modern teaching& learning aids and sporting & recreational resources.

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Learn

After having personally visited and participated in the P&G Pakistan program Safe SchoolingFor Building Futures, I feel immense pride in our commitment to the earthquake rehabilitationefforts in Azad Kashmir; the children studying in the P&G-READ Foundation schools have truly

shone in both their academics as well as their extra-curriculars.

- Al Rajwani, Vice President, Arabian Peninsula & Pakistan

"Through our partnerships in education, we

strive to empower communities. P&G believes

in building long-term partnerships with

organizations such as HOPE, READ

Foundation and SOS Children's Villages in

order to make a deep and meaningful impact

on the lives of the children who we touch

through our programs."

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-Yassin Attas, External Relations Director,Arabian Peninsula & Pakistan

Learn

For you they may beresigned to their fate...According to the Human Development Report on SouthAsia, While less than one-third of Pakistans people areincome poor, nearly one half suffer from serious deprivationof several opportunities of life. Nearly two-third of the totaladult population (and as much as three-fourths of the adultfemale population) cannot read or write'1.

"If we can create an environment where learning is funand where children feel safe and happy, then we have amuch better chance of reducing drop-out rates and ofseeing children through to the end of the school cycle."

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Thrive

1 Human Development Report on South Asia, 2003.

2 Hugh Delaney, 2006. UNICEF Pakistan."http://www.unicef.org/infobycountry/pakistan_35672.html"

- Fawad Ali Shah, UNICEF Education Officer2

For us their future neverlooked brighter.

Thrive

The concept of THRIVE aims at providing children inneed access to programs that help develop self-esteemand build skills for life. These skills enable children to

mould their own future and create independence fromthe constraints of their social predicaments. P&G

continually strives to improve the quality of life for thechildren who are part of its long-term community

programs, so that they may go on to lead happy andhealthy lives in the future.

P&G and its employee volunteers have initiated severalprograms to enable children in need in Pakistan to

thrive. Whether the children are physically, mentally orsocially impaired, all THRIVE programs attempt to

improve the lives of children everyday.

To help understand the THRIVE concept, there is aquaint Chinese proverb that explains our approach toimproving childrens lives over the long term. Give a

man a fish and he will eat for a day. Teach him how tofish and he will eat for a lifetime."

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Thrive

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P&G Home at SOS Childrens Villages

P&G Pakistan has recently launched a long-termpartnership with the SOS Childrens Villages of Pakistan,with a vision to providing homes to promote thewell-being, learning and development of life skillsfor orphans.

This project is P&G Pakistans first long-term communityrelations initiative in orphan-care. P&G recentlycommemorated the launch of this partnershipwith the groundbreaking of the first P&GHome in the SOS Childrens Village tobe built in Islamabad. This home willhouse 10-12 orphaned children, andwill take two years to complete.

Thrive

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The primary objective of SOS Childrens Villages ofPakistan is to provide children deprived of their naturalparents a situation which is as close as possible toa natural home. SOS Children's Villages meet thisneed by providing orphaned and abandoned childrenwith a home, a mother, brothers and sisters, and acommunity that provides security and loving care.P&G Pakistan is committed to this partnership on along-term basis.

The P&G team aims to be closely involved with thechildren living in the SOS Childrens Villages by sharingknowledge and skills with them. We believe thatpersonal involvement in our community developmentprograms helps P&G employee volunteers to trulyconnect with the communities that benefit from thecompanys social initiatives.

P&G Home at SOS Childrens Villages

Pakistan

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Employee Volunteerismat P&G Pakistan

P&G Pakistan encourages and facilitates employeevolunteerism as it strongly believes that financial contributionhas to be strengthened with the investment of time and

effort. Volunteerism is part of P&Gs mission to enable ouremployees to engage very closely and personally with thelong-term causes that P&G is committed to. Employees

volunteer their time, effort and skills in building confidence,communication skills and fueling creativity within children

benefitting from the Keeping The Hope Alive andSafe Schooling For Building Futures projects. Employeeshave also had a chance to volunteer their time for diversifiedcauses such as educating children at a childrens cancer

ward in Jinnah Hospital and spending time with deaf andblind children.

At times of crises, employees are also engaged throughdonations (where appropriate and possible), which are then

matched by the company.

Thrive

Saroop Guland Saad Rao, P&G employee

volunteers, share: "Its a world of a differencewhen you donate your time rather then material

belongings. We tried to create an emotional connectionwith the kids while taking them through the Makli tombs. The

highlight was making a difference by explaining to them the historyof Makli, an opportunity which they might not have had otherwise."

Pakistan

47

More than 60 P&G employee volunteers have travelled to Muzaffarabad to personallypaint the two P&G-READ Schools in Azad Kashmir, and to have drawing and painting

competitions with the READ children. P&G employees, including senior P&G managementhave personally painted colorful murals on the walls of the P&G-READ Foundation schools,

and planted trees.

The idea behind employee engagement with READ Foundation children was to enable thechildren to gain valuable extra-curricular experience in order to open their minds and help

P&G employee volunteers connect with the Safe Schooling For Building Futures program.

Volunteering with READ children

P&G employees have continuously engaged with HOPE children by taking them oneducational trips and spending time building their creativity and confidence. In 2007,15 employee volunteers took P&G-HOPE children on an educational tour of the PAFMuseum more than 200 children were delighted to see the PAF Museum for the

first time and had immense fun interacting with the P&G employees.

In 2008, 18 P&G employees took 110 HOPE children studying at the P&G-HOPE Thattaschools on a fun-filled educational trip to the UNESCO World Heritage Site Makli Hills.

P&G Employees volunteeringwith HOPE children

Thrive

Child Aid AssociationVolunteerism Drive

Established in 1999, the Child Aid Association is an NGO at the NationalInstitute of Child Health, treating 200 child cancer patients each month forfree. Cancer patients, during chemotherapy, get prone to infection and it

is important that these children practice good hygiene habits.

P&G Pakistan employee volunteers conducted an intensive hygiene awareness campaignabout handwashing with soap in Child Aid Association's Children Cancer Ward. They playededucational games with young children suffering from cancer to build health and hygiene

awareness and inculcate handwashing habits.

Pakistan

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Thrive

P&G InternVolunteerism Event

P&G introduced the concept of InternVolunteerism Day, the aim of which was tobring to life P&Gs community projects to ourinterns.

P&G prides itself on its Summer InternshipProgram, that gives students across Pakistan theunique opportunity to work at P&G for a summer,undertaking real-life projects at P&G Pakistan.

P&G interns spent a day with the school childrenof P&G-HOPE schools, playing educational gameswith the children, and leading a number of funpublic speaking and educational activities.

The overwhelmingly positive response achievedfrom the interns as well as the bright smiles thatwere seen on the faces of the HOPE schoolchildren were highly empowering and rewarding.As a result, P&G Pakistan has made InternVolunteerism Day an important element of everyyears Summer Internship Program.

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P&G volunteers brought joy and warmth intothe lives of some very intelligent visuallychallanged and hearing impaired children atthe Ida Rieu School for the Deaf and Blind.More than 30 P&G volunteers dedicated theirSaturdays to spending time with children fromthe school, painting their faces with bright,colorful masks and playing special games withthe children.

Ida Rieu SchoolVolunteerism Drive

Thrive

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Thrive

-Tarek Elbaradi, General Manager, ExternalRelations, Central Eastern Europe, Middle East

& Africa

Many P&G employees enthusiastically volunteer

in the numerous Live, Learn and Thrive causes

that P&G supports all around the world. This is

one of the key reasons why Corporate Social

Responsibility is so deeply engrained in P&G: It

is part of our employees as much as it is part of

our purpose and culture.

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U.S. Chamber of Commerce

The U.S. Chamber of Commerce Business CivicLeadership Center (BCLC) named Procter & Gamble

Pakistan as one of five global finalists for the Corporate CitizenshipAward in the category of International Community Service in 2008.

The International Community Service Award is all about recognizing how global companiescan make a positive difference wherever they do business, said BCLC Executive Director Stephen

Jordan. P&G and the other finalists demonstrate with their actions the value of corporatecitizenship around the world.

CSR National Excellence Award

P&G Pakistan received the 3rd Corporate Social Responsibility National Excellence Award- 2008, organized by Help International Welfare Trust and supported by the Corporate SocialResponisbility Association of Pakistan. This award was in recognition of the P&G Live, Learn

and Thrive corporate cause.

1st and 2nd Helpline Trust CSR Awards

Helpline Trust awarded P&G for its commitment to consumers and to the community at itsCSR Awards, Putting the Consumer First. P&G was awarded along with 18 other nationaland multinational companies. The Awards recognized corporate entities that have providedquality products at affordable prices and have made positive contributions for the betterment

of civil society through sustainable social interventions.

P&G Pakistan Honors

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At P&G we want to engage andequip every P&G employee to buildsustainability thinking and practicesinto their everyday work. Wevechallenged one another to Takethe R (Responsibility) forTomorrow.

Values and PoliciesAt P&G, everything we do beginswith our Purpose, Values andPrinciples. We ensure ourcommitment to our employeesthrough our human resourcessystem and profit-sharing program.Our human resources system trains,educates and develops our people.It offers flexible work arrangements,giving employees the opportunityto meet both business and personalneeds. It instills our culture andpolicies to ensure that everyone istreated fairly and has theopportunity to contribute to ourvision and mission.

OurEmployees

Our Employees

Human ResourcesHuman Resources ensures that P&G has theemployees, organizational design and work cultureto deliver business productivity and to continuallyimprove consumer, employee and shareholder value.They provide recruiting, training, development,diversity, benefits and compensation coordinationfor the Company.

It is the Companys intent to develop all employeesto their full potential. To achieve this goal thefollowing support systems are in place:

Career discussions, performance appraisals,assignment plans, transfer and promotion plans.

Informal network support groups. Mentoring to provide informal support and

guidance, in addition to coaching and training provided by each employees direct manager.

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Harassment PolicyP&G is committed to providing

a harassment-free workenvironment. This is the right

thing to do not only from a socialperspective but also from a

business perspective. It enablesour diverse work force tocontribute to their highest

potential. We will not tolerateharassment of anyone by anyone

including employees,suppliers, customers, contractorsand agencies. Every employee is

expected to be proactive inensuring that the work

environment is free fromharassment of any kind.Managers of others are

responsible for setting clearexpectations for acceptablebehavior in the workplace.

CompensationP&G supports paying employees a competitive salary, as

benchmarked against other leading companies. Consistent withour principle of valuing personal mastery, we reward employees

for improving their skills and capabilities.

BenefitsP&G is a recognized leader in employee benefits. The Companysbenefits have been developed to help protect the financial securityof employees. These benefits include comprehensive coveragefor health care, generous vacation and holiday time and other

work / family balance benefits, including flextime, child care leaveand less-than-full-time schedules.

Flexible Work Arrangements (FWA)P&G provides FWA to its employees. The policy enables the

organization to leverage resources to meet business and employeeneeds and builds on the Core Values of Trust, Integrity and

Ownership we share with our employees. The objective is to helpall employees manage an exceptional situation in their professional& personal life and structure work to meet the demands of thebusiness as well as the needs of the employees for a specified

period of time. There are six kind of Flexible Work Programs: Flexiblework schedules, Reduced work schedules, Family care leave,

Personal leave of absence, Location free work, Work from home.

Employee PrivacyP&G respects employee privacy and dignity. Wewill only collect and retain personal informationfrom employees that is required for the effectiveoperation of the Company or as required by law.We will keep that information confidential andrelease it only to those who have a legitimate

need to know.

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StakeholdersShape the future by

working transparentlywith stakeholders to

enable continuedfreedom to innovatein a responsible way.

We firmly believe that we can make a bigger difference together with partners than any of us can make onour own. In Pakistan, P&G has partnered with numerous local and international organizations to bring to lifethe P&G Live, Learn and Thrive community development programs presented in this report.

We are deeply thankful to the following organizations and valued individuals for believing in us and takingsteps together with us to enable children to Live, Learn and Thrive:

Valuing Our Stakeholders

Abrar-ul-Haq

Anwar Maqsood

Bayer Schering Pharma

Child Aid Association

Child Care Association

Greenstar Social Marketing

Health Oriented Preventive Education (HOPE)

Ida Rieu School for the Blind and Deaf

Infectious Diseases Society of Pakistan (IDSP)

Ministry of Environment, Government of Pakistan

Pakistan Medical Association (PMA)

READ Foundation

Sahara For Life Trust

Shaan

Society of Obstetricians and Gynecologists of Pakistan (SOGP)

SOS Childrens Villages of Pakistan

UNICEF Pakistan

World Population Foundation (WPF)

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businessis only a means to an end, and

the end is a constantlyimproving society.

- Howard Morgens, former P&G CEO, 1973

We believe we have a responsibility to society to use ourresources money, people and energies for the long-term

benefit of society as well as the Company. - John Smale, former P&G CEO, 1977

The value we build for shareholders doesnt end with the balancesheet. Its amplified by our ability to be a responsible corporate

citizen wherever we operate around the globe. - John Pepper, former P&G CEO, 2000

We are going to take sustainability to the next levelA.G. Lafley Chairman of the Board,President & Chief Executive, 2007

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For feedback/queries on this report, please contact:

External Relations Manager,P&G Pakistan,

Bahria Complex 1,6th Floor,

24 MT Khan Road.Karachi, Pakistan

Tel: 92-21-111000764

www.pg.com.pkconsumerservicepk.im@pg.com

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