Plastic prices surge 70% on supply shortage

PPMA says 80% of inputs come from ME as supply chain disrupted by conflict

LAHORE:

Prices of plastic products across Pakistan have surged sharply in recent weeks, driven by supply disruptions and volatility in petroleum-linked raw materials, affecting a broad range of everyday consumer goods.

Industry representatives say the price of plastic resin, a key petroleum-derived raw material, has risen steeply following import constraints linked to geopolitical tensions, including the ongoing illegitimate US-Israeli war against Iran.

Speaking to The Express Tribune, Pakistan Plastic Manufacturers Association (PPMA) Chairman Syed Nabeel Hashmi said the country's plastic industry remains heavily dependent on raw materials imported from the Middle East, and the unrest in the region has severely disrupted the supply chain.

"70% to 80% of raw materials come from Middle Eastern countries, which has badly affected the production of all plastic items," he said.

Hashmi said prices of plastic raw materials have already increased by 40% to 50%, while the cost of finished products has risen by 60% to 70% due to higher petroleum tariffs and energy costs. Even if the regional conflict is resolved, it would take at least six to eight months for the supply chain to normalise. "Currently, there is a huge shortage of raw materials in the market," he added.

Another industry representative said the price of a 25-kilogram bag of plastic resin has climbed from about Rs9,000 to more than Rs18,000. The price of 75-micron shopping bags has increased from Rs450 to Rs900 per kilogram, while plastic sheet rolls used in construction have also doubled in price.

Analysts note that plastic is fundamentally a petroleum-based product, meaning fluctuations in global oil and gas prices directly affect the cost of plastic goods. For ordinary consumers, this means higher prices for kitchen utensils, storage containers, toys, packaging materials, water bottles, buckets, plastic furniture and automotive spare parts. The rise in plastic prices comes alongside increases in other essential commodities, including ghee and cooking oil, further straining household budgets. Industry stakeholders warn that unless import flows stabilise, plastic prices are likely to remain elevated.