Cherat Packaging’s 3.7MW solar expansion enhances efficiency, cuts energy costs at Khyber Pakhtunkhwa plant

PAKISTAN – Cherat Packaging has commissioned a 2.7MW solar power plant at its Gadoon Amazai facility, expanding total renewable capacity to 3.7MW as the company aims to meet 45-50 percent of its power requirements through solar and hydel sources.

The company, incorporated in 1989 and listed on the Pakistan Stock Exchange, informed the exchange on 10 June 2026 that the new installation adds to an existing 1MW solar system already operational at the same site. 

The expanded solar capacity will contribute to cost savings while supporting environmental sustainability through reduced reliance on conventional power sources, according to CPPL’s stock exchange notification. 

The company has an annual production capacity of 265 million paper bags and 195 million polypropylene bags, making it the largest supplier of packaging material to Pakistan’s cement industry while also serving sugar, chemicals and other allied sectors. 

How Pakistan’s Solar Boom Delivered US$12 Billion in Import Savings and Shielded Industry

Pakistan’s rapid consumer-led shift to solar power has significantly reduced the country’s vulnerability to energy shocks tied to Middle East tensions. 

An analysis by Renewables First and the Centre for Research on Energy and Clean Air found that solar uptake since 2018 helped the country avoid over US$12 billion in oil and gas imports through February 2026, with projected savings of another US$6.3 billion by the end of 2026. 

Pakistan’s fossil-fuel imports fell by approximately 40 percent between 2022 and 2024, while cumulative solar panel imports rose from under 1 gigawatt in 2018 to more than 51 gigawatts by early 2026. 

This household-financed energy transition, driven by individuals and businesses deploying an estimated US$8-10 billion of their own capital, has effectively purchased a form of strategic autonomy that has cushioned the impact of disruptions such as the Iran conflict on the Strait of Hormuz.

What 3.7MW Solar Capacity Means for Packaging Production Cost Structure

Cherat Packaging’s 3.7MW capacity at Gadoon Amazai makes it one of the larger industrial solar installations in Khyber Pakhtunkhwa’s manufacturing sector. 

Pakistan’s energy import bill in FY22 hit a record US$23.32 billion, accounting for nearly 29 percent of total imports, but the solar substitution of the last five years has materially reduced that figure. 

With grid electricity costs remaining a significant operational expense for energy-intensive industries such as paper sack and PP bag manufacturing, the solar system provides CPPL with a hedge against rising fuel import costs. 

The company has also expanded into flexible packaging, acquiring rotogravure and flexographic printing lines from Windmöller & Hölscher and now maintaining an annual printing capacity of 19,800 tons.

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