Bulleh Shah Packaging (Private) Limited ("BSP" or the "Company") was incorporated as a private company, limited by Shares, under the repealed Companies Ordinance, 1984 (now, the Companies Act, 2017) on September 16, 2005. The Company's primary objective is to carry out the business of manufacture and sale of paper & board of all kinds and corrugated boxes.

The Company was established in a new green project incorporated as a separate entity under the name of Bulleh Shah Paper Mills (BSPM). In September 2012, a joint venture was established between Stora Enso (35%) and Packages Limited (65%), under the name Bulleh Shah Packaging (Pvt.) Limited. In 2017, Stora Enso exited the joint venture, resulting in Packages Limited becoming the Company’s sole shareholder

Bulleh Shah Packaging (Private) Limited is engaged in the manufacturing and sale of corrugated boxes, paper, board, and other paper-based products. The installed production capacity remained unchanged at 360,000 MT per annum for paper & board and 186,000 MT per annum for corrugated boxes in 2025 and 2024. Against this capacity, the Company recorded actual production of 266,076 MT per annum of paper & board and 90,676 MT per annum of corrugated boxes in 2025, compared to 237,870 MT per annum and 88,670 MT per annum, respectively, in 2024.

Bulleh Shah Packaging (Pvt.) Limited is 100% owned subsidiary of Packages Limited.

Packages Limited serves as the principal investment holding company of the Ali Group, which has an established track record of over six decades. Its investment portfolio is diversified across a range of sectors and includes companies involved in the manufacturing and distribution of inks, flexible packaging materials, paper, board, and corrugated boxes, as well as biaxially oriented polypropylene (BOPP) and cast polypropylene (CPP) films. The Group also has investments in businesses engaged in the production and sale of ground calcium carbonate products, insurance, power generation, and real estate, and has recently expanded its portfolio into the manufacturing of corn-based starch.

The Group is recognized as one of Pakistan’s prominent business conglomerates, with a diversified presence across the paper and packaging, financial services, and education sectors. Packages Limited has developed successful strategic partnerships and joint ventures with leading international corporations and maintains well-established, long-term relationships with various multinational companies.

As at March 31, 2026, Packages Limited had a consolidated asset base of ~PKR 262.0bln, supported by ~PKR 85.7bln of total equity.

The Company has an eight-member Board of Directors comprising one independent director, six non-executive directors, and one executive director. The Board is chaired by Mr. Syed Hyder Ali, providing leadership and oversight at the Board level. The presence of an independent director, alongside a majority of non-executive directors, provides an appropriate degree of independent oversight and supports balanced decision-making. The overall Board composition, size, and mix of executive and non-executive representation are considered supportive of a sound corporate governance framework, with effective oversight of management, strategic direction, and key business matters.

The Board, with a well-diversified background and relative expertise of its members, is a key source of oversight and guidance for the management. Syed Hyder Ali is the CEO and Managing Director of Packages Limited and IGI Life Insurance Limited. He holds degrees in Chemical Engineering and Paper Chemistry from leading U.S. institutions and has also attended a management program at Harvard Business School. He has extensive board-level experience across various prominent corporate, educational, and philanthropic institutions and has served as the Honorary Consul General of Sweden in Lahore since 1998. Syed Aslam Mehdi holds an MBA from IBA Karachi and has extensive experience with various companies of the Packages Group, including serving as General Manager of Packages Limited. He currently serves on the boards of several Packages Group entities and is associated with various educational and philanthropic institutions. Mr. Riyaz T. Chinoy has been a Director of BSPL since October 2019 and brings extensive corporate and industrial experience, including as former CEO of IIL. He holds an Industrial Engineering degree from Case Western Reserve University and currently serves on the boards of several prominent companies and institutions. Mr. Imran Khalid Niazi is a seasoned professional with extensive leadership experience across multinational companies, including Coca-Cola, and holds a Master’s degree in Chemical Engineering from the University of Arizona. He currently serves on the boards of Packages Limited, Bulleh Shah Packaging, and other institutions, while also contributing to LUMS and various philanthropic organizations. Mr. Khurram Raza Bakhtayari is a Chartered Accountant with extensive experience in financial planning, budgeting, forecasting, investment, and taxation. He serves as CEO and Director of Packages Real Estate and CFO of Packages Limited, while also holding directorships across several group companies. Dr. Ayesha Khan is a seasoned professional with extensive experience in strategy, economic policy, international development, and financial services, including leadership roles at a leading Pakistani bank and McKinsey & Company. She leads Acumen’s operations in Pakistan and holds a doctorate from Harvard Business School, a Master’s in International Development from Harvard Kennedy School, and a degree in Economics from Princeton University. 

The Board held several meetings throughout CY25, with the majority of attendance to discuss pertinent matters. The minutes of the meetings are documented properly. To ensure effective governance, the Board has formed three committees, namely, (i) Audit Committee, (ii) Executive Committee, and (iii) Human Resource and Remuneration Committee. Both committees are chaired by non-executive directors.

M/s A.F. Ferguson & Co. is the external auditor of the Company. They gave an unqualified opinion on the Company’s financial statements for the year ended Dec 31, 2025. The audit covered the Company's financial statements for the year ended December 31, 2025, conducted as per ISAs applicable in Pakistan. The auditors confirmed that proper books of account were maintained, the financial statements conform to the Companies Act, 2017, and no Zakat was deductible at source. The engagement partner was Khurram Akbar Khan, with the report dated April 02, 2026.

The Company has established a well-defined management structure divided into functional departments with clear lines of responsibilities.

The team is led by Mr. Muhammad Nasir Zaman Khan (MBA), Chief Executive Officer, who brings around 10 years of overall and Group experience, including approximately 1.5 years in his current position. Mr. Bilal Naeem, the CFO, is a Chartered accountant and has more than 9 years of experience. He has a strong background in accounting and finance within Packages Group. Mr. Syed Ali Murtaza Bukhari serves as the Business Unit Head of Corrugated Business. He joined Packages in 2003 as a Production Engineer and has been associated with the Group for 20 years. He is a Mechanical Engineer from UET with an MBA from Nanyang Technological University, Singapore. Mr Amir Janjua heads the Paper and Board Division who has previously held Group Head Supply Chain position at Packages Group and has also served as Business Unit Head of Corrugated Division.

The experience of the sponsors along with a professional management team has helped the Company to streamline their operations and cut down on their costs. The production facilities have minimal wastage which is effectively managed through re-cycling and re-using in the process 250 tons of paper per day.

The Company utilizes SAP S/4HANA, an integrated Enterprise Resource Planning (ERP) system, to generate comprehensive Management Information System (MIS) and operational reports. The system supports the centralization and integration of key business processes and operational data, enabling management to monitor business performance, assess operational efficiency, and facilitate timely and informed decision-making.

To ensure effective internal controls and operational efficiency, the Company has an established Internal Audit Function responsible for identifying, assessing, and reporting key operational and control-related risks. The Internal Audit Function conducts periodic reviews of relevant processes and controls and communicates its findings to management and the Audit Committee. The Audit Committee oversees the internal audit function, reviews internal audit reports and key observations, and evaluates the planned audit activities to ensure that identified risks are appropriately monitored and addressed.

The domestic paperboard industry has benefited from anti-dumping measures imposed by the National Tariff Commission (NTC) on imports of One-Side Coated Folding Box Board (FBB) / Coated Bleached Board (180–400 GSM) originating from China. The product is classified under PCT 4810.9200 and 4810.9900 and is primarily used in the manufacturing of folding cartons for pharmaceuticals, food, cigarettes, cosmetics and other consumer products. Following an investigation initiated on complaints from the domestic industry, NTC determined that dumped Chinese imports were causing material injury through increased import volumes, price undercutting and pressure on domestic prices and profitability. Consequently, provisional anti-dumping duties were imposed at 5.13% on cooperating Chinese exporters and 31.62% on other exporters, providing a degree of protection to local manufacturers such as Bulleh Shah Packaging and supporting the competitiveness of the domestic industry. The packaging industry's cost structure remains highly dependent on imported raw materials, particularly plastic resins and chemical wood pulp, rendering profitability sensitive to movements in international commodity prices and exchange rates.The production level of Paper over the last five years has a CAGR of ~3.5%. This reflects the stable demand of the segment as it makes up a significant portion of overall Paper and board production. The production of Paper decreased marginally by ~2.9% YoY in FY25 to ~355,513MT from ~366,267MT in FY24. Production declined to ~54,435MT as of 2MFY26 (2MFY25: ~61,464MT). Chemical wood pulp serves as a primary raw material in the manufacturing of paper packaging. The imports of wood pulp decreased by ~8.9% YoY during FY24, with value imported clocking in at USD~159.5Mn (FY25: USD~175.1Mn), as paper producers are increasingly shifting toward non wood fibers and agricultural residues.

Based on management representation, BSP maintains a significant market presence across its key product segments. In Photocopy Paper, the Company holds an estimated market share of approximately 40%. In Liquid Packaging Board (LPB), BSP's estimated market share exceeds 43%, with the Company being the only domestic manufacturer of this product in Pakistan. For White Line Chipboard, management estimates BSP's market share at approximately 23%, indicating a moderate position within the segment. In Folding Box Board, the Company's market share varies by grade, with an estimated 60% share in the tobacco-grade segment compared to approximately 14% in the general-purpose segment. In Corrugated Packaging, BSP's overall estimated market share is approximately 14%, increasing to around 40% within the organised sector.

The Company derives its revenue from the sale of Paper & Board and Corrugated Board in both the local market and through exports. During CY25, the Company’s topline increased by ~9.1% to PKR 63.1bln (CY24: PKR 57.9bln). Gross profit improved to PKR 3.5bln (CY24: PKR 2.6bln), while finance cost declined to PKR 6.1bln (CY24: PKR 7.8bln). Nevertheless, the Company remained loss-making and posted a net loss of PKR 4.9bln during CY25, albeit lower than the net loss of PKR 6.1bln recorded in CY24. During 6MCY26, the Company’s topline increased by ~6.4% to PKR 34.8bln (6MCY25: PKR 32.7bln), while cost of sales increased at a relatively lower pace to PKR 31.2bln (6MCY25: PKR 30.1bln). Consequently, gross profit improved significantly to PKR 3.7bln (6MCY25: PKR 2.6bln). Finance cost declined to PKR 2.8bln (6MCY25: PKR 3.0bln), supporting a reduction in net loss to PKR 754mln from PKR 1.7bln in 6MCY25.

The Company’s profitability margins demonstrated improvement during CY25. Gross profit margin increased to ~5.5% (CY24: ~4.5%), while operating profit margin improved to ~1.7% (CY24: ~0.8%). The net profit margin, though remaining negative, improved to ~-7.8% during CY25 from ~-10.5% in CY24. The improvement gained further momentum during 6MCY26, supported by relatively contained growth in cost of sales and lower finance costs. Gross profit margin increased to ~10.5% (6MCY25: ~7.6%), while operating profit margin improved to ~5.9% (6MCY25: ~3.4%). Consequently, net profit margin improved significantly to ~-2.2%(6MCY25: ~-5.2%), indicating a notable reduction in operating losses; however, sustained profitability remains important going forward.

The Company enjoys a strong and well-recognized brand name in the market, particularly in consumer products. To further strengthen its market position, BSP has undertaken BMR initiatives aimed at enhancing the production capacity and operating efficiency of its Paper & Board and Corrugated divisions. Given the elevated leverage arising from substantial short-term and long-term borrowings utilized to finance working capital requirements and capital expenditure, management continues to focus on restoring sustainable profitability and strengthening the Company’s financial profile. During CY25, the Company received PKR 8bln as an advance against issuance of shares from its Holding Company, Packages Limited, providing support to its capital structure. During 6MCY26, the aforementioned amount was converted into ordinary share capital. Nevertheless, the Company continues to maintain a highly leveraged capital structure, and improvement in profitability, cash flows and deleveraging remains important for the sustainability of its financial profile.

BSP’s working capital requirements are primarily financed through short-term borrowings. During CY25, inventory days improved to ~103 days (CY24: ~127 days), reflecting better inventory management. However, trade receivable days increased to ~39 days (CY24: ~35 days), while trade payable days increased to ~58 days (CY24: ~49 days). Consequently, net working capital days improved considerably to ~84 days during CY25 from ~112 days in CY24. During 6MCY26, inventory days further improved to ~97 days, while trade receivable days increased moderately to ~43 days. Trade payable days increased to ~66 days, supporting a further reduction in net working capital days to ~73 days. The improvement in the working capital cycle is considered positive; however, sizeable inventory and receivable levels continue to necessitate reliance on short-term borrowings.

During CY25, the Company’s FCFO improved to PKR 3.1bln (CY24: PKR 2.6bln), while finance cost declined to PKR 6.1bln (CY24: PKR 7.8bln). Consequently, FCFO-to-finance cost coverage improved to ~0.5x during CY25 from ~0.3x in CY24, while EBITDA-to-finance cost coverage improved to ~0.8x from ~0.5x. During 6MCY26, FCFO remained broadly stable at PKR 3.1bln, whereas finance cost reduced to PKR 2.8bln. Consequently, FCFO-to-finance cost coverage improved significantly to ~1.1x, while EBITDA-to-finance cost coverage strengthened to ~1.5x. Core debt coverage, measured as FCFO relative to finance cost, current maturities of long-term borrowings and excess short-term borrowings, also improved to ~0.4x (CY25: ~0.3x; CY24: ~0.2x). Despite the improvement, debt servicing coverage remains an important rating consideration given the Company’s sizeable debt burden.

The Company maintains a highly leveraged capital structure, with long-term borrowings primarily utilized for capital expenditure and expansion projects, while short-term borrowings support working capital requirements. At end-CY25, total borrowings stood at PKR 48.6bln, compared with PKR 46.9bln at end-CY24. Short-term borrowings increased to PKR 23.1bln (CY24: PKR 19.6bln), while long-term borrowings declined to PKR 20.6bln (CY24: PKR 23.6bln). Shareholders’ equity increased to PKR 10.3bln at end-CY25 (CY24: PKR 8.1bln), supported by the PKR 8bln advance against issuance of shares. Consequently, the debt-to-capital ratio improved to ~82.5% at end-CY25 from ~85.3% at end-CY24. At end-6MCY26, total borrowings decreased moderately to PKR 49.5bln (6MCY25 PKR 53.3bln). Short-term borrowings increased to PKR 26.3bln (6MCY25 PKR 23.3bln), while long-term borrowings declined to PKR 17.5bln (6MCY25 PKR 25.3bln). Shareholders’ equity stood at PKR 9.3bln (6MCY25 PKR 5.5bln) following the conversion of the PKR 8bln advance into ordinary share capital and the accumulation of further losses.