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This process only works on consoles running custom firmware (HEN/GoldHEN). Standard retail consoles cannot install custom PKG files. A PS2 Game ISO: A clean backup of the PS2 game you own.
Converting PS2 games to work on the PS4 is not without its challenges. The PS2 and PS4 have fundamentally different architectures. The PS2 uses a Emotion Engine CPU and a Graphics Synthesizer GPU, while the PS4 uses a x86-64 AMD Jaguar 8-core processor and an AMD Radeon Graphics Core Next engine. This means that direct compatibility is not possible, and conversion requires emulation or significant reworking of the game's code.