Rising energy, raw material costs squeeze Pakistan’s packaging and paper industry

Pakistan’s packaging and paper industry is facing mounting pressure from rising raw material and energy costs, with manufacturers warning that continued increases could disrupt supply chains and affect industrial operations across multiple sectors.

Industry stakeholders said prices of key inputs including kraft paper, pulp, adhesives, inks and fuel had increased sharply over the past year because of inflation, currency fluctuations and global supply chain disruptions.

Manufacturers said higher electricity tariffs and fuel prices had also significantly increased production and transportation costs, reducing profit margins across the sector.

According to industry experts, kraft paper, one of the most important raw materials used in packaging, has experienced major price volatility amid strong global demand and limited supply.

They noted that paper accounts for nearly 70% of total raw material costs in packaging production, making manufacturers highly exposed to fluctuations in international prices.

The All Pakistan Paper Merchants (North Zone) said rising fuel and energy costs, along with the recent Iran-US conflict, had accelerated increases in paper and paper product prices.

The association urged the government to stabilise energy prices and provide relief measures for the sector, warning that unchecked increases could affect publishing, packaging and stationery businesses across the country.