A package is a Java construct used to organise classes. They provide:
- A namespace, in which to place classes
- A level of access (package access), that allows classes in that package to share fields
That's it; what implementers do with this organizational feature is up to them.
A library is another organizational concept. However, the intention of a library is to provide a a well-defined interface to the outside world and an internal implementation to execute as needed.
Both are organizational ideas and libraries are often made up of packages (if implemented in Java). However, they have different intent and so it is sensible to give them different names. Often, a small library will fit in a single package, so using one to mean the other is probably not confusing. However, they are not the same.