Pulp and Paper INDUSTRY IN PAKISTAN - · PDF file2.1 Current Status of Pulp and Paper Industry...

2012
Embassy of Brazil-
Islamabad
SECOM
PULP AND PAPER INDUSTRY
IN PAKISTAN
General information on the Pulp and Paper Industry in Pakistan. Research and
Compilation by the Commercial Section of the Embassy of Brazil in Pakistan.

Pulp and Paper Industry in Pakistan
1 SECOM-Islamabad, Pakistan
Table of Contents
1. Pakistans Economy ................................................................................................................ 2
2. Industry overview ..................................................................................................................... 2
2.1 Current Status of Pulp and Paper Industry in Pakistan ......................................... 3
2.2 Types of papers produced ........................................................................................ 4
2.3 Method of Producing Paper .................................................................................... 4
2.4 Raw Material Availability .................................................................................................. 5
3. Current status of Trade and Potential of Pak- Brazil Trade Cooperation in this sector ...7
3.1 Potential of Export to Pakistan ................................................................................. 8
4. Future Outlook ....................................................................................................................... 10
5. Companies and Useful Links ................................................................................................ 11

1. Pakistans Economy
Pakistan economy is positioned at 27th largest economy with 488 (1) billion USD in term of
Purchasing Power Parity. Pakistan has a semi-industrialized economy, which mainly
encompasses textiles, chemicals, food processing, agriculture and other industries.
Growth poles of Pakistan's economy are situated along the Indus River, diversified
economies of Karachi and Punjab's urban centers. The economy has suffered in the
past from decades of internal political disputes, terrorism, political instability, and
tensions with neighboring India. Now, energy crises in the country are affecting the
growth rate of the economy. Foreign exchange reserves are bolstered by steady
worker remittances; however a growing current account deficit driven by a widening
trade gap as import growth outstrips export expansion could draw down reserves and
dampen GDP growth in the medium term.
Despite of the challenges faced, there are number of factors favoring bright future
ahead. Large agriculture base, developing industrialization, abundance of natural
resources, proximity of emerging economic powers, like China, Russia and India, and
young population are some of the factors which indicate that Pakistan has a huge
economic potential. At the centre of the Asian growth, Pakistan could potentially
become one of Asias premier trade, energy and transports corridor. Geographical
location suits transit trade with proximity to the Middle-East, West Asia, Central Asia,
China and South Asia. Recent developments to realize this vision include Gwadar port
to be linked by road & rail to Afghanistan, Iran and China and onwards to Central Asia,
Middle East.
Basic Data:
Currency 1 Pakistani Rupee
1 Real equals 46.2 Pak. Rupees (25-07-2012)
Population 180 million (6th Largest)
Capital Islamabad
Territory 796,095 km2 (35th largest)
Imports 43 billion USD (2011)
Exports 25 billion USD (2011)
Independence 14th of August 1947
Language Urdu (national), English
2. Industry overview
In 1947 when Pakistan came into existence, there was not a single plant to
manufacture paper in the country. All the requirements of the paper in the country had
to be met through imports. Pakistan Industrial Development Corporation (PIDC) was set
up for the establishment of different industries including paper mill in public sector. In
1953, PIDC established the first paper mill at Chandargona in East Pakistan (Now
Bangladesh), followed by a high grade paper mills -Adamjee Paper & Board Mills at
Noshera in NWFP and a Newsprint Mill at Khulna in East Pakistan (Bangladesh) in 1959.
Later on Adamjee Paper and Board closed down its operation.
http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Food_processinghttp://en.wikipedia.org/wiki/Indus_Riverhttp://en.wikipedia.org/wiki/Economy_of_Karachihttp://en.wikipedia.org/wiki/Economy_of_Punjab,_Pakistanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Foreign_exchange_reserves

With the separation of East Pakistan in 1971, a serious shortage of writing/printing paper
and newsprint was created in West Pakistan, as the supplies of these papers were
completely cut off from Bangladesh.
Now, this industry has different units across the country producing various grades of
papers, using local and imported raw materials. Unfortunately, due to poor planning in
1980s and 1990s, many of the units are lying closed from that time. At present, in
Pakistan there are about 100 units in the organized and unorganized sectors. These units
produce Writing and Printing Paper, Wrapping and Packing Paper, White duplex
coated, Un-coated board, chip Board and other board.
Paper Manufacturing in Pakistan
The position with regard to newsprint is, however, altogether different, as no newsprint
plant has so far been established in Pakistan, with the result that Pakistan imports its all
requirement of newsprint from abroad.
In Pakistan forest area constitutes just around 4.8 [1] per cent or 4.2 million hectares
which is far below the internationally acceptable ratio of 20-30 per cent necessary for
the balanced economy.
2.1. Current Status of the Industry
Paper Industry of Pakistan is not among the prime industries of the country and is in
developing stage. Consumption of Paper in Pakistan is in far excess of the domestic
capacity. So, the local demand of some types of papers is met through imports.

Table-01-Snap Shot of the Industry
Installed Capacity
Units 100
Installed Capacity 900,000 Tons
Utilization of the Capacity 434,740 Tons (2011)
Number of Employees 100,000
Tariff on import of Paper products 10-20 %
Tariff on import of Chemical wood Pulp Nil
Over a period of time domestic industry has attained capacities and capabilities to
produce all major Paper & Paperboard products leaving small room for imports.
However, domestic demand of some specialized papers, including coated art paper /
card and newsprint, among others, is met through imports.
More than 70 % of mills are located in Punjab province, 20 % are in Sindh province and
10% are in Khyber Pakhunkhwa province.
2.2. Types of paper Produced in Pakistan
Writing and printing paper
Packaging board
Liner board (A type of paperboard used in making corrugated cartons)
Corrugate medium
Continuous computer reels
Tissue and Security/banknote paper
2.3. Methods of Producing Paper in Pakistan
Neutral sulfite semi-chemical pulping process (NSSC) is one of the most common
pulping methods in Pakistan and wheat straw is used as a raw material. The pulping
liquor used in NSSC process is a solution of sodium sulfite containing sodium
bicarbonate or sodium hydroxide as a buffer to keep the PH around 7. The NSSC
process consist of four steps (a) steaming of raw material for 30 min at atmospheric
pressure, (b) addition of pulping chemical and application of 100 psi pressure at a
temperature of 120-125 centigrade for 60 min, (c) third step is the removal of excess
liquor not absorbed by the raw material, (d) lastly digestion at 140-160 centigrade for 1-
6 h. The yield of this process is 65-90% depending upon raw material, buffering agent
and cooking time.
Pakistan is also one of the few countries in the world where agricultural waste and
Neutral Sodium Sulfite cooking process is also used to produce paper and paperboard
grades. The fiber is given a combination of treatments with alkali and chlorine. Such
methods were used for bleaching as early as 1787, and it is claimed that straw pulp was
so made in 1830.

2.4. Raw Materials Availability
The basic raw material sources for manufacturing of paper and paper board can be
broadly classified into three groups:
Wood based material
Among the wood based raw materials, coniferous pine is in short supply in Pakistan. The
soft wood forests in the country exist in extreme northern hills of North West Frontier
province and Azad Kashmir which are mostly inaccessible due to lack of suitable
communication facilities. As we know that Forest plantations are the major assets of the

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