Paper and Pulp Sector : Energy Efficiency and Decarbonization (EE&D) Opportunities

Overview & Synopsis

The paper and pulp industry in Pakistan comprises approximately 100 companies producing around 0.9 million tonnes of paper products annually. Over the past five years (FY20–FY24), paper production has grown at a compound annual growth rate of 7.2 percent, highlighting the segment’s stability and its significant contribution to overall paper and board production. In FY24, production rose to 366,267 metric tonnes (MT) from 311,675 MT in FY23, marking a 17.6 percent year-on-year increase. The sector employs an estimated 100,000 to 150,000 individuals, with nearly 70 percent of paper mills located in Punjab province. Pakistan’s total demand for paper and board stands at approximately 1.7 million tonnes, of which nearly 60 percent is met through imports. The industry accounts for 7 percent of the country’s primary energy consumption, relying mainly on grid electricity, fuel oil, and natural gas. It consumes nearly 13 percent of industrial gas, 4.6 percent of fuel oil, and 3 percent of industrial electricity. Emissions primarily stem from onsite fuel use and purchased energy, with minor contributions from chemicals used in pulping. According to Pakistan’s latest greenhouse gas inventory, the paper and pulp subsector contributes nearly 3 percent of total industrial emissions. This note outlines decarbonization strategies aimed at enhancing energy efficiency, reducing emissions, and boosting industrial competitiveness while delivering broader economic and environmental benefits.