Simple packaging powers Pakistan's export growth

The unsexy business nobody notices

Muzamil begins by framing why this conversation matters. Pakistan is shifting toward a dollarized, export-based economy. Yet most entrepreneurs chase glamorous ideas: manufacturing cars, making phones, starting software companies. What they miss is that “some of the most interesting business ideas are the ones that are in front of you,” Muzamil says. He opens with a personal observation: while traveling to Dubai, he noticed Pakistani products like Himalayan salt on shelves at premium prices. But their packaging was so poor they could not compete. That gap sparked the podcast. Today’s guest, Ihtisham Makbool Ilahi, runs MacPac Films. Most Pakistanis have never heard of MacPac. Yet they interact with its product daily. Every Cocomo biscuit wrapper, every milk packet, every textile product they buy likely carries MacPac film.

From pharmaceuticals to films

Ihtisham’s father started in pharmaceuticals, creating products across multiple factories. One day he decided to leave the sector and pivot into pharmaceutical packaging. In the 1980s, he began importing cellophane from Europe. But as global demand for food packaging exploded, the market moved to a new material: BOPP film. A German supplier called in 1984 with an offer: a production line had become available. Ihtisham’s father said no. “I’m just having a baby, and he’s going to be my first boy, so I can’t come right now.” A year later, the supplier called again. After his son’s first birthday, Ihtisham says, his father traveled to Germany, took the machinery, and brought it to Pakistan. “We got into manufacturing of the same product for the first time in Pakistan.” That was 1985. Today, polythene film is a multibillion-dollar global industry. MacPac helped nurture it.

When crisis becomes clarity

In 2007, MacPac had just announced its first positive earnings quarter since going public. The company had fought through years of zero working capital, using a creative toll-manufacturing model to survive. Then, on October 30th at 2:15 in the morning, the general manager called. “Sir, ye ag lag gaya.” A fire had consumed half the factory. The steel fabrication wing was destroyed. Machinery was gone. Ihtisham’s father was at the K show in Germany. Ihtisham stayed at the site for 36 hours without sleep. When emergency services arrived, they asked who would come in first. Ihtisham told them his people would not enter; let the professionals handle it. But his focus never wavered: “All human safety, and those who go inside, we would say that we would say that we wouldn’t go inside.” The main production machinery survived. The auxiliary equipment was ash. Ihtisham asked his people what they wanted. They said: “Sir, we will do it again and better.” That response gave him new life. Over two years, the team rebuilt the factory. During that downtime, Ihtisham implemented ERP systems for the first time. He had time to systematize what had always been improvised. The crisis forced professionalization.

The three purposes of packaging

Packaging is not just about looks. Ihtisham explains the three core functions. “First is preservation. That product and gives it a better shelf life. It could be six months, it could be few days. It depends on what product is milk would have a different life, biscuits would have a different life.” Second is labeling: communicating ingredients, allergy information, recycling symbols, and safety warnings so consumers can decide if a product is right for them. Third is marketing. “When the child opens the package, they will fight and the product will fall down. They will put in their teeth. So first, the experience they are going through.” If the unboxing is poor, consumers rarely buy again. Global competitors have perfected all three. Pakistani exporters often neglect all three. That negligence costs them the global market.

The energy trap

MacPac is exporting to Europe and North America now. The company just opened MacPac Middle East to base export operations. But Ihtisham is candid about the barrier: energy costs. “In the UAE, for an average customer, I pay 29 rupees a unit. The difference is so huge. It’s a two to three X difference, which directly goes into the product and then comes out of your competition.” Pakistan has abundant gas, solar potential, and wind resources. Yet the country has not locked in long-term energy contracts like the Middle East or China have. Policy makers need to focus on affordable energy, Ihtisham argues, because “energy is the lifeline.” Without it, capital-intensive manufacturing cannot compete globally. Yet MacPac does not accept defeat. The company has added solar capacity and continues to invest in efficiency and innovation.

Professionalization as survival

Family businesses often struggle when the founder ages. Cousins fight. Efficiency dies. One Karachi textile exporter Ihtisham knew had ten factories. As the owner aged, he distributed them among cousins and sons. “I said, would it not be better that you go and structure this whole conglomerate, give everyone a percentage and make everyone look at it and make a chairman of the board and then hire a professional and say that you will do it and we will manage it?” Pakistan has largely rejected this path. “We have to be business man who has 40 years of experience. He’s sitting in the morning. He’s writing books. See his order. Take his t-shirts. Micro-manage.” MacPac chose differently. The company hired a professional CEO. Ihtisham stepped back from daily decisions. “I’m not involved in the micro level of decision making, and I’m proud of that. Because I’ve done everything in the last 15 years plus with my hand.” Now his job is vision, not execution. “I only hire people in the company who are better than me in those areas. Chai banane wale se leke mujhse achi chai banane chahiye. Finance amalne wale ko woh finance anana chahiye jo mujhe nahi aata.” That delegation unlocked growth.

Export potential is real

Pakistan has Himalayan salt, rice, spices, meat, and agricultural goods that the world wants. Yet most exports are raw or minimally processed. Adding value through processing and packaging shifts the economics entirely. Take potatoes. Export raw potatoes for a commodity price. Process them into powder, package them well, and send them globally as a superfoods product. The price per kilogram jumps. Muzamil argues this is where young engineers and entrepreneurs should focus. “If you take it from chowel to value addition. You process potatoes. You make potato powder. And you have to sell a mashed potato product. You pack good and send it out.” The opportunity is massive. Neighboring countries were 20 years ahead. Yet Pakistan is moving now. Youth who are willing to work, think out of the box, and find mentors can build dollar-generating businesses in sectors that sit right in front of them.

Patience, consistency, and mentorship

Ihtisham’s final message to young builders is simple. “Our niche and passion decide करें, और उसमें patiently mehnat करते रहें consistent रहें फल आएगा और guidance ले लें अपना mentor system बना लें कोई आप advisors बना लें और आप उस पे लगे रहें इंशाला success आएगी.” Find your niche. Work patiently. Stay consistent. Get guidance. Build a mentor system. Then keep at it. “Potential बहुत है अगर डटके करते रहें किसी भी industry को पकड़ लें.”