Mansoor Sadiq
Leading importers have called for a special economic zone (SEZ) built under the China-Pakistan Economic Corridor (CPEC) to be specifically dedicated to the chemical industry keeping in view its increasing significance. Following the industrial base built under the CPEC at SEZs, Pakistan’s demand for chemicals used in different industries has surged, and the country imports major chemicals from China and other destinations.
Amir Qaiser from Chemical Linker Pakistan said while talking to WealthPK that chemicals are the main ingredient in various industries like textiles, fertilisers, paints, cement, mining, automobiles, food and beverages, and pharmaceuticals. According to official data, Pakistan imports $523.4 million worth of inorganic chemicals and $2.4 billion worth of organic chemicals, which include chemicals such as Methyl Isobutyl Carbinol (MIBC), Sodium Thioglycolate, Ferric Chloride and Sodium Isobutyl Xanthate (SIBX).
Pakistan’s chemical industry is among the key sectors of its economy, contributing around 3% to its gross domestic product (GDP) and about 16% to the manufacturing GDP. Amir said the chemical industry in Pakistan has grown significantly over the years with increase in domestic demand and availability of raw material. Iqbal A Qidwai, senior representative of Pakistan Chemical Manufacturers Association (PCMA), said some chemicals are readily available, while others are imported to fulfil the needs of different industries.
Talking about the challenges in the chemical industry, Qidwai said that the industry has to comply with various environmental, health, and safety regulations, adding that the industry requires constant innovation to develop new products, processes, and technologies that meet the changing needs of customers and markets. He added that Pakistan has a low level of research and development (R&D) spending and a weak innovation ecosystem that limits its ability to innovate effectively.
Qidwai also mentioned that the chemical industry in Pakistan faces trade deficit as it imports more chemicals than it exports. This is due to various factors, such as high import duties on raw material, lack of export incentives, and competitiveness issues. Despite these challenges, the chemical industry in Pakistan also has many opportunities to grow. The demand for chemicals in the country is expected to increase as the population grows and urbanization develops.
Moreover, the government’s initiatives to boost economic development, such as the CPEC, will create more demand for chemicals in various sectors such as infrastructure, energy, agriculture, and industry. If the chemical industry gets integrated at a dedicated SEZ, the initiative can play a significant role in enhancing Pakistan’s economic growth, industrialisation, and social welfare.
Credit: Independent News Pakistan-WealthPk
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