Pakistan's economy achieved an impressive GDP growth rate during the last three decades. The co-related industries of Plastic, Printing & Packaging have registered a phenomenal growth during the past few years where printing and graphic art industries are the 2nd largest in terms of work force deployment in Pakistan.
The plastic, packaging & printing industry in Pakistan is growing with a fast pace. The rapid urbanization, lifestyle, increase in consumer goods, cost effectiveness and cost of production are all of these that increase the development in these sectors. The industry is thriving at an average annual growth rate of 15% with a total estimated production capacity of 624,200 M/T per annum. The industry-attracted investment amounted to more than US$ 260 billion, almost half of which was foreign direct investment (FDI), all contributing to an exceptional export growth by 35%. Automotive, cosmetics, toys, chemicals, stationery, paper & board, electronics, food, publishing and furniture are some of the major industries utilizing materials and state-of-the-art equipment and technology to increase output and meet increasing demands in domestic & foreign markets.
Adding further strength to the industrial progress, Pakistan has established successful export markets for its plastic goods. In foreign markets including countries like Australia, South Africa, Saudi Arabia, West Indies, UAE, Kuwait, Taiwan, Nigeria and Zimbabwe, Pakistan is strategically well placed to target the all important local and international buyers in one of the world's largest trading regions. Particular growth is observed in exports of plastic components for the automobile industry. This growth occured due to entrepreneurial efforts for simplified tax policy on local production and reduction in import tariff on plastic raw materials. The industry is contributing more than Rs 7.5 billion annually to the national exchequer in shape of custom duty, sales tax and income tax.
Its contribution to the Gross Domestic Product (GDP) was 1.69%. It is a high tech industry: Plastic processing machinery is mostly imported from Japan, Korea, Italy, Taiwan, Hong Kong, England, China and Germany.
However, locally manufactured machinery is also being used. Raw material is also imported. The capacity utilization has been in between 43 to 95%. Plastic industry in the un-organized sector is totally self-financed and during the last decade, the unorganized sector has grown much more rapidly.
The per capita consumption of plastic in Pakistan is 3.1 kg. There are some 6,000 plastic product manufacturers in the Country and 600,000 people are directly and indirectly involved with this business.
Pakistan imports 80-90 % raw material for plastic industry from different countries. The total consumption of raw material used in the plastic industry in the Country is around 450,000 tonnes per annum. The Country imports raw material from UAE and Far Eastern countries, special grade raw material is imported from Germany and USA.
In future, packaging plays a crucial role in product development, display and advertising. There is great potential and much room for expansion in this industry. Pakistan has made successful exports to Middle East, Europe, Africa and rest of the world. Flexible packaging in Pakistan got a strong boost especially due to agriculture and demand for easy to use products.
Karachi – The Industrial and Commercial Hub of Pakistan Karachi is the largest city of Pakistan and one of the largest cities in the world with home to several of Pakistan's largest companies in textiles, cement, steel, heavy machinery, chemicals, and food products. The city is home to approximately 50 percent of Pakistan's manufacturing sector, and produces approximately 62 percent of Pakistan's value added in large scale manufacturing. At least 4500 industrial units form Karachi's formal industrial economy. Karachi Export Processing Zone, SITE, Korangi, Northern Bypass Industrial Zone, Bin Qasim and North Karachi serve as large industrial estates in Karachi. The Karachi Expo Centre also complements Karachi's industrial economy by hosting regional and international exhibitions.