brief overview of Pakistan Newspaper Industry and newsprint supply chain

1. 1 of 07
Pakistan Newspaper Industry
OVERVIEW - NEWSPRINT SUPPLY
Sayyed Zakir Ali Rizwe [19131]
Submitted to:
Rizwan Tanveer Malik

2. 2 of 07
Pakistan Newspaper Industry
 Pakistan Independence 1947 & Muslim Newspapers
 Muslim Newspapers that moved to Pakistan
 Newspaper Audience
 Ethnic Groups
 Official & Regional Languages
Almost 1,500 Newspapers & Journals

3. 3 of 07
Pakistan Newspaper – Availability, Significance & Circulation
 All Pakistan Newspaper Society
 Ministry of Information & broadcasting
 Audit Bureau of Circulation
 Pakistan Press Foundation
Newsprint Availability
o Governments used newsprint
availability as a mean to control Press
o Import of newsprint by print media was
subject to issuance of permits by
Ministry of Information and
Broadcasting, allowing government to
patronize sections of the press
o In 1989, PPP government replaced the
permit system with a free and open
import of newsprint at market prices
o In 1991 the decision was reversed by
PML(N) government
o Newsprint permits were made under
‘Audit Bureau of Circulation’
o The bureau functions under the Ministry
of Information and Broadcasting and
responsible to assess circulation and
print orders of newspapers &
magazines
o Reversed following 1999 military coup
that afterwards provided leverage to
press
http://www.pressreference.com/No-
Sa/Pakistan.html
 Press in Pakistan holds significant power and has suffered
much under various political leaders, only to emerge
resilient and more committed to freedom of speech
 Central to public life in Pakistan because it provides a forum
for debating issues of national importance
 All-Pakistan Newspaper Society
estimated combined circulation
for newspapers and periodicals
as 10.5 million copies (2012)
 Print Media Include
• 424 dailies
• 718 weeklies
• 107 fortnightlies
• 553 monthlies
Low Due to:
 Literacy
 Urban Press
 Price of
newspapers

4. 4 of 07
Leading Newspaper – Ownership & Circulation
Dominating News Groups
 Independent Media Conglomerate -
Jang Group
 Pakistan Herald Publication Limited –
DAWN
 Nawae-Waqt Group
Jang Publications is the largest media group
i. Daily JANG, Monopoly of ‘Urdu
readership’
ii. Largest circulating weekly magazine,
AKHBARE e JEHAN
iii. Evening papers, Daily News and AWAM
iv. The News, first Pakistani computerized
newspaper
Pakistan Herald Publications Ltd.
i. DAWN, dominant hold over Karachi
readership.
ii. Herald, an influential English monthly
iii. STAR - evening paper and the monthly
Spider
Nawa-e-Waqt Group of Publication
i. Daily Nawa-e-Waqt
ii. The Nation, English daily
iii. And Family, Urdu weekly
 Daily JANG - [Circulation: 850,000]
 NAWA e WAQT - [Circulation: 500,000]
 Pakistan [Circulation: 279,000]
 KHABRAIN [Circulation: 232,000],
 The News [Circulation: 120,000]
 Dawn [Circulation: 109,000]
 Business Recorder [Circulation: 22,000]
 Newspapers depend on advertising
revenue, ‘income’
 TV, largest share of media advertising
revenues (40%), newspapers, 32%,
magazines 10% & Radio 3%

5. 5 of 07
Newsprint – Offset Printing
Newsprint is a low-cost non-archival paper consisting mainly
of wood pulp. It is used to print newspaper and other
publications and advertising material
Invented in 1844 in Canada, has an off-white cast and is
designed for printing press for long web of paper, mostly,
using off-set printing
Newsprint Key Attributes
 Low cost (compared with paper grades used for glossy
magazines and sale brochures
 strong enough for modern high-speed web printing
presses
 Can accept 4-color printing at acceptable quality
Newsprint is made
from fibers
extracted from trees
(spruce, fir, balsam
fir or pine)
Most of the
newsprint today is
made from ‘recycled
fibers’
Offset printing is in use since
1905. Inked image is
transferred (or "offset") from
a plate to a rubber blanket,
then to the printing surface
Newspapers in
Pakistan are off-set
printed
Used to print newspapers, flyers & print material
intended for ‘mass distribution’
80% of all newsprint consumed is purchased by
newspaper publishers
Newsprint manufacturing
energy, fiber & labor
Sustainability - Newsprint
manufactured from recycled
fiber (up to 05-times)
Raw Material for Newsprint; PULP - Abundant
Pakistan import Newsprint; mostly from
Scandinavian countries

6. 6 of 07
Newsprint – Import, History & Demand
Newsprint Import
 Government of Pakistan
relaxation for Newsprint
Import
 State Bank Requirements
 Quota for Import
 Front end importers process
LC driven purchase through
wet ports
 Purchased by main stream
publishing houses
Newsprint Global Markets
 Mostly Scandinavian
Countries
 Decreasing Newsprint
demand
 Transportation through Sea
 Karachi, Port Qasim
 High Lead-time
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
July 2007 - May 2008 PKR (MN) July 2007 - May 2008 US$ (MN)
July 2015 - May 2016 PKR (MN) July 2015 - May 2016 US$ (MN)
State Bank of Pakistan - Newsprint Imports: [ FTY 2007-08 & 2015-16]

7. 7 of 07
Newsprint – Import, History & Demand
StateBankofPakistan-NewsprintImports:[FTY2007-08&2015-16]
July 2007 - May 2008 July 2015 - May 2016 Change
PKR (MN) US$ (MN) PKR (MN) US$ (MN) US$ Re - PKR Days
Austrailia 0.77 0.01 1.36 0.013 8% 78% 33
Austria 151.67 2.43 5.94 0.058 (0.98) (0.96) 25
Belarus - - 4.83 0.047 24
Belgium 1.23 0.02 - 0.000 (1.00) (1.00) 31
Canada 53.22 0.85 33.15 0.323 (0.62) (0.38) 42
China 16.94 0.27 - 0.000 (1.00) (1.00) 27
France 8.40 0.13 - 0.000 (1.00) (1.00) 32
Finland 44.88 0.72 1.43 0.014 (0.98) (0.97) 36
Germany 92.90 1.49 52.21 0.509 (0.66) (0.44) 32
Indonesia 1.08 0.02 1.36 0.013 (0.23) 26% 15
Japan 72.60 1.16 - 0.000 (1.00) (1.00) 29
Holland 9.42 0.15 10.61 0.104 (0.31) 13% 30
Norway 19.14 0.31 - 0.000 (1.00) (1.00) 32
Russia 209.17 3.35 280.60 2.738 (0.18) 34% 22
KSA 30.16 0.48 - 0.000 (1.00) (1.00) 11
Singapore 87.07 1.39 - 0.000 (1.00) (1.00) 15
Spain 6.82 0.11 6.82 0.066 (0.39) 0% 27
Sweden 1,037.72 16.60 35.59 0.347 (0.98) (0.97) 36
Dubai 2,367.13 37.87 114.92 1.121 (0.97) (0.95) 4
UAE - AD 145.06 2.32 2.75 0.027 (0.99) (0.98) 4
UAE-SH 70.70 1.13 - 0.000 (1.00) (1.00) 4
UAE-UQ 20.75 0.33 - 0.000 (1.00) (1.00) 4
UK 144.56 2.31 19.87 0.194 (0.92) (0.86) 29
USA 89.25 1.43 17.73 0.173 (0.88) (0.80) 56
Ukraine - - 6.65 0.065 21
Others 2.10 0.03 - 0.000 (1.00) (1.00) 26
4,682.71 74.92 595.81 5.81 (0.92) (0.87) 25

8. 8 of 07
Newsprint Supplier – JANG Group
 Rehan PaperMart
Limited, office: Main
Shahra e Liaquat,
Karachi
 Supplying Newsprint
to JANG Group since
1990’s
 Two, 2000 sq.yards
each warehouses in
Karachi to store
Newsprint
 Buy quota from
other agents and
purchase Newsprint
through commercial
banks, letter-of-
credit (LC)
 Sell Newsprint to
JANG Group &
access to other
publishing & media
print houses
Storage
Off-loaded & placement to a secondary
storage after the time per which the
consignment is allowed at Karachi port
Less per day Space Charges
Transportation
Newsprint through trucks is moved from
the wet-port to the Karachi warehouse
Supply to JANG group through trucks as
well
Distribution
JANG group distributes newspapers/
magazine/editorials through a network of
newspaper hawkers; in smaller towns,
hawkers also serve as stringers for
newspapers.
Buses are used for nearby distribution and
airfreights are utilized for faraway cities
when schedules permit
i. Efficient Supply chain
ii. Purchase driven on
competitive pricing
iii. Flexible supply chain;
decrease in demand turned it
in to buyer market
iv. Higher-lead-time to deliver
increase storage time
v. Import through UAE provide
a lead-time-cut of 15-16 days
vi. Make to stock [Rehan
PaperMart]
vii. Assemble to Order [JANG
Group]
viii. Supply chain low in-load vs.
high out-load
Beneficiary
i. Supplier is the beneficiary
ii. Multiple customers
iii. Role in recycle (ONP) market