By Ayesha Mudassar ISLAMABAD, Feb. 17 (INP-WealthPK): Pakistan can bring an industrial revolution by concentrating on the development of the petrochemical manufacturing industry to enhance its inadequate refining capacity and curb the ever-rising oil import bill. This has become all the more important as petrochemicals and petroleum products have continued to play a significant role over the last 25-30 years in developing economies around the world, spurring industrialisation and urbanisation. Production Summary: 2016-2020

Hydrocarbon	2019-20	2018-19	2017-18	2016-17	2015-16
Natural Gas
Production (MMscf)	283,792	317,457	323,007	329,367	306,604
Daily Average (MMscf)	775	870	885	902	838
Producing Wells	325	306	300	275	264
Oil/NGL
Production (bbl)	4361244	5075912	5058524	5565564	5353380
Daily Average (bbl)	11916	13905	13859	15248	14627
Producing Wells*	68	61	57	47	46
LPG
Production (M. tons)	107114	116723	95332	81267	66597
Daily Average (M. tons)	293	320	261	223	182

  In line with the government policy, the Engro Corporation, a conglomerate of companies, has announced the setting up of a manufacturing plant in the petrochemical sector at an estimated cost of over $ 1 billion with a view to reducing Pakistan's petrochemical imports and spur exports. The plant will have an installed capacity of 550,000-750,000 tonnes per year. The plant would start commercial production in six to seven years. This huge venture will attract big investments, enabling the country to enhance exports and substitute imports to save the precious foreign exchange.   Establishing a modern and large refinery complex in Pakistan is direly needed to help the country have necessary infrastructure and a solid industrial base for enhanced economic activity. The countries like Malaysia, South Korea, India, China and Vietnam have made large investments in refining and petrochemicals, which have greatly assisted them in achieving remarkable economic growth and prosperity. According to Secretary Board of Investment (BOI) Fareena Mazhar, different Chinese companies are ready to invest $15 billion in the petrochemical sector of Pakistan. “The venture also includes a project of constructing an energy pipeline from Gwadar to China.” The implementation of numerous financial and structural reforms has led the oil and gas sector to emerge as one of the most attractive sectors for investment in the country. The federal government also announced in October this year to formulate a petrochemical policy to attract an investment of $3 billion in the sector. In this respect, the Overseas Investors Chamber of Commerce and Industry (OICCI) has proposed to Abdul Razak Dawood, Prime Minister's Adviser on Commerce and Investment, to provide incentives to foreign companies to support the petrochemical industry at the domestic level. The support can attract investment which will improve the investment to GDP ratio by 100 bps. According to OICCI, in the medium term, these investments will enable the country to achieve import substitution equal to $800 million per annum, create employment of 50,000 people and generate extra tax collection amounting to Rs50 billion annually. In the long run, these investments will lay the foundation for large-scale investments, which will in turn have a significant positive impact on the country’s economy.