2.1.

2 Contribution to economy/GDP

Industry Profile

The paper and board industry in Pakistan has emerged over the years. The first paper unit was
founded in 1952. Later many units were setup in Punjab, NWFP and Sindh. These units now
cater around 80 percent of the total domestic demand of Pakistan. Paper Industry in Pakistan is
important as it has emerged and survived well over the years. About 70% of the paper units are
in Punjab, 10% are in NWFP and the rest 20% are in Sindh. Punjab has the greater proportion as
it has the higher availability of underground water as well as wheat straw which is the prime
raw material in paper production. At present there are around 100 organized and unorganized
paper production sectors in the country.

The electricity crisis and rising fuel rates in Pakistan has leaded an increase in the production of
costs of paper making.

Factors affecting demand

The major factors affecting the demand for the products of paper, paper board and packaging
industry include the following:

• The increasing population demands for greater educational facilities which lead to more
demand of paper production. The literacy rate which is estimated at 53 %, activities associates
with the education sector account for almost one half of the paper consumption in the country.

• The demand for paper, paper board and other packaging materials is directly influenced
by the level of economic activity. In Pakistan the annual Gross Domestic Product (GDP) has
grown at the rate is 8.4 percent. The increase tempo of economic activity and investment
friendly policies of the government are expected to lead to greater demand for paper products.

• The government has applied heavy taxation as well as export duties which increases the
cost of exporting paper products
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2.1.3 Demographics of workforce

https://www.bls.gov/iag/tgs/iag322.htm

2.1.4 major players in paper industry

 Bulleh Shah packaging LTD. (Brief Intro)

 Paper Century (Brief Intro)
 Flying Group of industries. (Brief Intro)
 Premier Paper Mill Ltd (Brief Intro)