KARACHI: The All Pakistan Corrugated Carton Manufacturers’ Association (APCCMA) chairman Masroor Mirza has said that the carton manufacturers are in deep trouble due to the shortage of raw material.
As a result of the COVID-19 pandemic, a price hike of wastepaper was noticed in the domestic and international markets.
The aftermath of this was an increment in prices of all kinds of paper used in corrugated carton manufacturing units by 50%, affecting production and threatening hundreds of small and medium enterprises with severe losses all over Pakistan.
Corrugated boxes, also known as carton boxes, are extensively used by companies in the pharma, food, automobile, textile, fruit, fisheries and many other sectors of exports.
The increase in exports and decrease in imports has hindered the supply of raw material over the last few months.
The unprecedented price hike has pushed many manufacturers to the brink of closure.
“Constant difficulties and hurdles are faced due to severe shortage of paper,” said the APCCMA chairman.
The entire corrugated industry was purchasing paper at higher rates since January 2021, but mostly carton manufacturers’ have not received any increment from their clients.
The APCCMA also appealed to the government to look into this matter on a war-footing and abolish the duty on paper.
It also urged the government to stop export of paper for the sake of this industry.
Copyright Business Recorder, 2021