Fatima Packaging Limited (FPL or "the Company") holds a prominent market position as a leading manufacturer of polypropylene-based packaging solutions in Pakistan. The Company was incorporated in Pakistan in April 2011 as an unlisted public company limited by shares under the now-repealed Companies Ordinance, 1984, subsequently replaced by the Companies Act, 2017.

Fatima Packaging Limited is a joint venture between Arif Habib Group and Fatima Group. Fatima Group traces its origins back to 1920 with the trading ventures of Mian Fazlur Rehman. Under the leadership of his son, Mr. Mukhtar Ahmed Sheikh, the Group diversified into textiles, sugar, and fertilizers, establishing Fatima Sugar Mills Limited in 1989 and Reliance Weaving Mills Limited in 1990. Following his passing in 1997, the Group continued its expansion with the incorporation of Fatima Fertilizer Company Limited in December 2003. Subsequent strategic acquisitions included Pakarab Fertilizers Limited in 2005 and Dawood Hercules’ fertilizer operations in Sheikhupura in 2016, which were later rebranded as Fatimafert. Today, Fatima Group stands among Pakistan’s fastest-growing conglomerates.

The Company is primarily engaged in the manufacturing and sale of woven polypropylene (WPP) bags, coated block bottom cement bags, high-density polyethylene (HDPE) liners, flexible laminates, and polyethylene films. These products cater to the packaging needs of various industrial sectors, including fertilizer, cement, sugar, rice, wheat, chemicals, seeds, and pesticides. As part of its revenue diversification strategy, the Company has also introduced biaxially oriented polypropylene (BOPP) bags and jumbo/sling bags—advanced, value-added alternatives to traditional WPP bags. The Company's registered office is located at E-110, Khayaban-e-Jinnah, Lahore Cantt, Punjab, Pakistan, while its manufacturing facility is situated in Sadiqabad, District Rahim Yar Khan, on land leased from its holding company, Fatima Fertilizer Company Limited. The Company commenced commercial operations in January 2013.

Fatima Packaging Limited is a joint venture between Arif Habib Group and Fatima Group, the holding entity Fatima Fertilizer Company Limited, owns 100%.

As a subsidiary of the well-established Fatima Fertilizer Company Limited, Fatima Packaging Limited benefits from the financial strength, reputation, and diversified portfolio of its parent company. The Fatima Group’s extensive presence across multiple industries, including fertilizers, energy, and trading etc., provides a solid foundation that enhances the stability of Fatima Packaging Limited.

Functioning as part of the diversified and reputable Fatima Group, the Company leverages the deep industry expertise and entrepreneurial insight of its parent, which has a long-standing history of success across diverse sectors. This strategic advantage allows Fatima Packaging Limited to navigate the complexities of the packaging industry with precision and foresight.

Fatima Packaging Limited benefits from the financial stability of the Fatima Group, one of Pakistan’s well-diversified business conglomerates. With group operations spanning fertilizers, energy, agri-business, sugar, textile, trading, and venture capital, the Company gains from strategic support, shared resources, and a broad-based business ecosystem. This association enhances its financial resilience, enables long-term planning, and supports sustainable growth within the packaging sector.

Fatima Packaging Limited’s Board comprises four Executive Directors with extensive and diverse professional backgrounds. The Chief Executive Officer, Mr. Abbas Mukhtar, brings over 10 years of leadership experience in business management. Mr. Muhammad Kashif Habib contributes significant commercial expertise, supporting strategic growth initiatives. The Board’s financial oversight is further reinforced by two Chartered Accountants, Mr. Asad Murad and Mr. Muhammad Musharaf Khan, who bring robust experience in financial management and corporate governance. Collectively, the Directors possess experience ranging from 10 to 28 years, enabling effective strategic direction and operational supervision.

Mr. Abbas Mukhtar serves as the CEO of Fatima Packaging Limited, bringing over a decade of expertise in entrepreneurship and operational leadership. His strategic vision and practical management style have played a pivotal role in optimizing operational efficiency, fostering innovation, and driving business development. With a comprehensive understanding of the industry, he is instrumental in guiding the Company's growth and shaping its long-term strategic direction.

The Company has established effective board committees, with regular meetings held throughout the year. Senior management duties are clearly defined, ensuring accountability and efficient governance, thereby enhancing the board's overall effectiveness.

Yousuf Adil Chartered Accountants, classified in category 'A' by SBP with satisfactory QCR rating, are the external auditors of the Company. The firm has issued an unqualified opinion on the financial statements of the Company for the fiscal year ended December 31, 2025.

Fatima Packaging Limited has a well-defined functional organizational structure with clear lines of authority. It emphasizes key functions like finance, operations, production, and marketing & sales. The structure appears suitable for a manufacturing company of its nature, the effectiveness is ensured by the coordination and communication across these different departments.

Fatima Packaging Limited is led by a seasoned management team with diverse expertise across key functional areas. Mr. Muhammad Usman Hanif, Director Finance & Operations, is a Fellow Chartered Accountant and Executive MBA graduate from LUMS, bringing over 26 years of experience in finance and operations. Mr. Sheraz Khan, General Manager Sales & Marketing, holds both an MBA and an LLB, and has 23 years of industry experience. Mr. Mukhtar Awan is General Manager Production and holds an M.Com degree and is an ACMA finalist, with 27 years of professional experience. Mr. Muhammad Zain, a Chartered Accountant with 15 years of experience, serves as Deputy General Manager Accounts & Finance. Together, this qualified leadership team plays a critical role in steering the Company’s strategic direction and ensuring operational excellence.

Management’s duties are clearly defined, ensuring accountability and efficient governance, which enhances the team’s overall effectiveness. With diverse educational backgrounds and extensive experience in their respective fields, the senior management team contributes to the Company's operational and strategic functions, ensuring strong leadership and alignment with organizational goals.

Fatima Packaging Limited (FPL) uses Oracle E-Business Suite ERP for core operations. This includes Oracle Financials and Supply Chain for procurement, inventory, and order booking.

Fatima Packaging Limited operates within a well-structured control environment, guided by the governance standards of the Fatima Group. Defined responsibilities, established policies, and routine oversight contribute to operational consistency and compliance. The Company’s track record of meeting projections suggests effective planning and monitoring processes, supported by group-level guidance and internal controls that encourage accountability and informed decision-making.

Globally, the PP, HDPE, LDPE, and LLDPE market is a large petrochemical industry valued at roughly $600–700 billion, growing at about 2.5%–3.5% annually, mainly driven by packaging demand. Global polyethylene capacity is around 130+ million tons per year, with major supply coming from China, the Middle East, and the United States, where shale-based ethane gives the US a strong cost advantage. China has added tens of millions of tons of capacity since 2018, making the market increasingly prone to oversupply and export pressure. Packaging accounts for 40%+ of total plastic consumption, with LLDPE steadily replacing LDPE in flexible film applications due to better performance and efficiency. Calcium carbonate is widely used as a filler at 10–30% loading levels in cost-sensitive markets like Asia. Overall, the industry is defined by low demand growth, rapid capacity expansion, and highly cyclical margins driven by feedstock costs and global supply shifts. In 2026, in Pakistan’s plastics industry, the market for PP (polypropylene), HDPE, LDPE, LLDPE, is highly import-dependent, fragmented, and driven by global petrochemical pricing rather than local supply dynamics. Most resin is sourced from the Middle East and Asia, making the industry extremely sensitive to exchange fluctuations, import restrictions, and LC availability, which often create sudden shortages and sharp price spikes. Demand remains structurally strong, but profitability across the value chain is uneven, with upstream suppliers and importers holding most pricing power while local converters operate on thin, highly competitive margins. PP dominates woven bags and textile packaging, HDPE is relatively stable and infrastructure-driven, while LDPE is gradually losing share to the more efficient LLDPE in flexible film applications. Calcium carbonate plays a key cost-reduction role, especially in woven sacks and films, but does not add significant value differentiation. Overall, the industry is cyclical and margin-sensitive, where success depends less on production capability and more on procurement timing, inventory management, and currency exposure control.

Fatima Packaging Limited is one of the leading manufacturers of polypropylene bags in Pakistan, with a strong market presence supported by scale, quality, and operational efficiency. Its affiliation with Fatima Group enhances its position through access to a stable customer base and shared resources, enabling it to compete effectively within the industry.

Net revenue declined ~3.3% YoY to PKR 6,407 million in CY25 from PKR 6,623 million in CY24. The domestic market dominates at ~96.5% of gross turnover, while export revenue recovered to PKR 261.9 million from PKR 152.9 million in CY24. Revenue concentration is as follows UREA bags with liner (~22.63%), CAN bags with liner (~19.93%), Cement bags (~18.7%), NP bags with liner (17.93%), annd the rest lying with others.The Company sold 120,152,593 bags 

Gross margin compressed to 18.6% from 21.7% in CY24, partially cushioned by easing polypropylene input costs and the solar energy installation. Operating margins stood at ~14.6% in CY25 (CY24: ~18.4%). Net Margins contracted as well CY25 ~8.2% from 8.7% in Y24, as PAT stood at PKR 526mln (CY24: 574mln). 

In CY25, Fatima Packaging Limited saw stable revenues, supported by growth in exports, although local sales experienced a slight decline. However, margins were somewhat lower across gross, operating, and net levels, reflecting some challenges with cost pressures. While the Company managed to maintain consistent revenue, the decline in margins suggests a need for improved cost management to ensure continued profitability moving forward.

In CY25, Fatima Packaging Limited’s net working capital cycle was ~112 days, compared to ~96 days in CY24. Inventory days stood ~61 in CY24, while trade receivables days rose to ~63 from ~57, indicating slower collections. Trade payable days were relatively steady at ~12 in CY25 versus ~22 in CY24.

In CY25, Fatima Packaging Limited’s coverage metrics reflected some recovery compared to CY24. The EBITDA to finance cost ratio stood at ~5.7x in CY25, down from ~3.9x in CY24, indicating reduced headroom for interest payments. Similarly, the FCFO to finance cost ratio declined to ~1.9x from ~2.4x, reflecting lower operating cash flow relative to financing costs. Despite the decline, coverage levels remained adequate to meet financial obligations.

In CY25, Fatima Packaging Limited’s capitalization profile showed a moderately leverage profile. Total borrowings to total capital stood at ~36.2%, up from ~43.8% in CY24, indicating a higher reliance on debt financing. The proportion of short-term borrowings within total borrowings remained high at ~70.6% in CY25, slightly down from ~83.2% in CY24. Overall, while the capital structure remains moderately geared, the increased debt share reflects a more leveraged position year-over-year.