Since the beginning of Q1 2021, prices for plastic pellets have more than tripled in Pakistan. Some of the plastic traders resorted to the accumulation of PVC raw materials (polyethylene, polypropylene, polyamide, acrylonitrile butadiene styrene), which led to a sharp increase in prices on the market and caused panic among the processors of plastic raw materials. The manufacturing and processing sectors of the Pakistani economy are suffering from rising prices. Manufacturers of plastic products and components for the automotive industry are monthly reviewing the selling prices of products in the direction of their increase.
Pakistan's food industry is warning of a possible rise in food prices. The main reason is a significant increase in the cost of packaging materials. Packaging manufacturers claim that they are seriously affected by the rise in the price of raw materials, in particular due to the suspension of a number of raw materials supplies during the pandemic. This is due to the fact that during the period of restrictions, plastic processors reduced purchases of polymers and stocks of products, and now they do not have time to produce the necessary volume.
Small and medium-sized plastic processing enterprises that survived the lockdown period associated with Covid-19 were once again on the verge of closure and bankruptcy. Members of the Association of packaging manufacturers are concerned about the possible consequences of rising prices for many value chains, where plastic packaging plays a very important role.