PACRA Maintains Entity Ratings of Bulleh Shah Packaging (Pvt.) Limited

Bulleh Shah Packaging (Private) Limited (‘BSPL’ or the ‘Company’) is principally engaged in the manufacturing of paper and board products, along with corrugated packaging boxes, and operates as a wholly owned subsidiary of Packages Limited. The ratings continue to benefit from the Group’s oversight, well-defined governance framework, sound internal controls, and experienced management During the period under review BSPL's financial risk profile remains stretched. The Company remains loss-making, carries negative working capital, and relies heavily on short-term borrowings to fund its operations. Current liabilities exceeded current assets by PKR 8.4bln at end-Jun’26, and cash and cash equivalents stood at a negative PKR 24.4bln, underlining a constrained liquidity position. Gearing also remains elevated, reflecting the Company's sizeable debt burden relative to its equity base.
To manage these liquidity constraints, the Company is undertaking measures to rationalize its working capital requirements, including receivables factoring and negotiating extended supplier credit terms. These initiatives are expected to reduce the Company's immediate funding requirement and release cash from working capital; notably, the extension of supplier credit terms has helped lower working capital requirements, though it has also contributed to a wider current asset-to-current liability gap. Against this backdrop, some improvement is visible in operating performance. The domestic paperboard industry continues to benefit from anti-dumping duties imposed by the NTC on FBB imports originating from China, which have remained in effect for several months and continue to support a more favourable domestic pricing environment. Aided by this, the Company's net loss narrowed to PKR 0.7bln in 6MCY26 from PKR 1.7bln in 6MCY25, mainly on the back of a reduction in finance costs. The ratings continue to draw meaningful support from BSPL's association with Packages Limited. BSPL's equity increased to PKR 9.2bln in 6MCY26 (6MCY25: PKR 5.4bln), primarily reflecting the conversion of PKR 8bln previously received from Packages Limited as an advance against the issuance of shares into ordinary share capital during 6MCY26 — a conversion that has provided a meaningful strengthening of the Company's equity base and represents a demonstrated instance of Group support. Going forward, further Group support can be extended, if required, to provide additional strength to BSPL. The ratings will remain contingent on the Company’s performance in accordance with the approved business strategy, with timely parent support remaining imperative in times of financial need.
The ratings are dependent upon the management's capacity to enhance margins while maintaining its market share. Effective management of working capital, along with sustaining adequate cash flows and coverage ratios, is crucial for the ratings. Going forward, the successful implementation of the strategic plan would remain crucial.

About the Entity
Bulleh Shah Packaging (Private) Limited was incorporated as a private limited Company on September 16, 2005. The primary purpose of the project was the backward integration of the packaging business of Packages Limited. The majority stake of BSP lies with Packages Limited which owns ~100% of the total shares. Mr. Syed Hyder Ali is the Chairperson of the Board and Mr. Nasir Zaman is the CEO of the Company.