ISLAMABAD: Pakistan’s chemical and pharmaceutical exports have increased significantly during the last five years, according to WealthPK.
According to the Pakistan Bureau of Statistics (PBS), cumulative chemical and pharmaceutical exports during the first seven months (July-January) of the fiscal year 2021-22 reached USD790.5 million against USD621.9 million during the corresponding period of 2020-2021 with an increase of 27 percent.
On a yearly basis, exports rose by 13.9 percent in FY 2020-21 reaching USD1149.08 million compared to the previous year when it was USD1008.4 million.
Chemical industry is one of the fastest-growing sectors globally, with a market size of approximately USD5.9 trillion.
This sector ranks as the fourth largest in the world and the third fastest growing. Pakistan’s chemical industry is estimated to be worth USD12 billion, according to the Pakistan Chemical Manufacturing Association (PCMA).
Every economic sector benefits from the chemical industry, as it plays a vital role in every industry. Approximately 96% of all manufactured products contain chemicals. There are 19 segments in this sector: textiles, leather, pharmaceuticals, food, fertilizers, agriculture, petrochemicals, construction chemicals, soaps, cosmetics, etc.
According to the PCMA Secretary General Iqbal Kidwai, Pakistan’s chemical industry was significantly contributing to meeting the domestic demands and earning a handful of foreign exchange. It has contributed Rs170 billion to the national exchequer in the form of tax in 2020 and is being projected to contribute Rs320 billion by 2030.
Pakistan’s chemical industry is one of the major sectors of economy employing 400,000 people, both directly and indirectly, and is projected to provide 4 million jobs by 2030.
Chemical industry is the leading supplier in the whole supply chain of the textile sector in Pakistan. Pakistan shipped textile exports worth USD15.4 billion in 2020-21. According to experts, textile exports could be increased three times by increasing the quantity of chemical fiber in the chemical industry.
This industry has excellent potential to grow. There is a need to facilitate this sector and overcome the challenges so that the opportunities of this sector could be explored up to the optimum level.
Pakistan’s chemical industry produces chemicals at a very small scale compared with the world. These chemicals are further used in many sectors in the processing of different goods. There is a need to increase the chemical production scale.
Since Pakistan lacks raw materials for production of chemical goods, it has to import most raw materials and then ship chemical goods to offshore markets after value addition. Thirty percent of chemicals are derived from the crude oil, and North America and the Gulf countries are the top countries where raw chemicals are available.
“Only primary level chemicals are not enough for export. The world is exporting chemicals in the form of final goods just like South Korea exports air conditioners that use plastic (which uses chemicals in production) as input,” said Jahangir Paracha, CEO of Engro Polymers and Chemicals.
In Pakistan, there is a need to develop the other relevant industries that use chemicals as input in production of goods. For example, fiber chemicals are used in textiles and acetic acid in paint manufacture.
INP
