ISLAMABAD - Keeping in view the immense potential of the chemical sector in Pakistan, leading manufacturers believe that a coherent and effective policy is needed to create a conducive environment for investment and import substitution.
Sitara Chemical Industries Chief Executive Officer (CEO) Mian Muhammad Idrees told WealthPK that Pakistan’s chemical sector has a huge potential, but due to the absence of an effective chemical policy, it is usually underinvested.
“To establish a competitive domestic industry and enhance exports, a proper plan of action along with competitive tax incentives are required,” he said. A representative of Tufail Chemical Ltd said a transparent policy was the most effective strategy to improve the refining capacity and reduce import bills. He said the implementation of a prudent chemical policy paved the way for investment in refining and petrochemicals in China, India, and Vietnam. Investment has then significantly helped these countries in achieving exceptional economic growth and prosperity.
The chemical industry is one of the fastest-growing sectors in the world, with a market of approximately $4 trillion with over 70,000 products. As a major provider of essential raw material to numerous sectors, it is vital for overall industrial development. The chemical industry provides essential raw materials to industries including textiles, construction, automobile, pharmaceutical, fertiliser, food, agriculture, synthetic rubber, paper and packaging, leather, and plastics.
The global chemicals market expanded from $4700.13 billion in 2022 to $5079.29 billion in 2023 at a compound annual growth rate (CAGR) of 8.1%.
Experts in the field of the chemical industry believe that a wise policy for the sector could help replace imports through domestic production.