Govt’s support sought for setting up petrochemical complex

Industry believes it can help save the country billions in imports

LAHORE: The Pakistan Chemical Manufacturers Association (PCMA) has urged political parties to give priority to development of the chemical industry in their economic agendas.

In a statement, PCMA Secretary General Iqbal Kidwai claimed that the chemical industry alone had the ability to bring down Pakistan's trade deficit by a massive $14 billion.

Elaborating, he said chemical imports of Pakistan amounted to over $14 billion, which was almost 17% of the total import bill with average annual increase of 7%.



On the other hand, the global chemical industry worth $4 trillion impacts nearly every sector of the economy. Chemical businesses have prime significance in every nation and they act as a driving force behind innovation and support more than 20 million jobs.

Unfortunately, due to the absence of a single cracker complex, the downstream industry in Pakistan was dependent on imports, he said, adding that India established its first cracker factory in 1992 and currently had eight cracker units.

Iran, despite under international sanctions for years, has also been able to put in place seven cracker factories, Singapore owns five state-of-the-art cracker businesses and Saudi Arabia owns 12.

"We have made considerable progress in basic inorganic chemicals like soda ash, caustic soda, sulphuric acid and chlorine with a sufficient production capacity. However, the absence of other chemicals, including petrochemicals, leads to dependence on imports," he said.



Kidwai pointed out that the PCMA, since its inception three years ago, had been highlighting significance of establishing a petrochemical complex in Pakistan and its efforts had eventually attracted the attention of local and foreign investors.

"A strong patronage and support from government authorities is needed to turn the dream into reality," he said. "I am confident that the complex will also help develop downstream chemical industry by producing hundreds of high-value chemicals within Pakistan."

It will gradually lead to a reduction in imports of chemicals with first-year impact of around $2-3 billion through import substitution.



The new government that would come into power after general elections could easily put a feather in its hat by just patronising the establishment of the petrochemical complex, he said.

Published in The Express Tribune, June 9^th, 2018.

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