Edi­tor’s Desk

Enterprise - - Contents -

Pak­istan is a state which is highly com­mit­ted to adopt­ing ef­fi­cient ex­port con­trol guide­lines, poli­cies and pro­ce­dures. It as­pires to in­crease trade with other coun­tries to mit­i­gate un­cer­tain­ties of ex­porters. Pak­istan is de­ter­mined to pur­sue its ef­fec­tive ex­port con­trol un­der var­i­ous in­ter­na­tional in­stru­ments and it con­trols and mon­i­tors all ex­ports that can con­trib­ute to the pro­lif­er­a­tion of weapons of mass de­struc­tion. Pak­istan is a re­spon­si­ble state and be­ing a sig­na­tory to a large num­ber of in­ter­na­tional treaties on non-pro­lif­er­a­tion, it is com­mit­ted to ful­fill­ing its in­ter­na­tional obli­ga­tions

Pak­istan is work­ing to­wards the de­vel­op­ment of trade poli­cies which would im­prove con­di­tions of the mar­ket which will ul­ti­mately con­trib­ute to the in­ter­na­tional econ­omy. Pak­istan’s mar­ket for in­dus­trial chem­i­cals is ex­pand­ing grad­u­ally though it has a less­well de­vel­oped com­mer­cial chem­i­cal in­dus­try than In­dia. The Chem­i­cal in­dus­try in Pak­istan is both in the or­ga­nized and un­or­ga­nized sec­tor. The sec­tor has an in­vest­ment be­tween Rs.550-600 bil­lion. Chem­i­cal re­lated im­ports con­sti­tute about 17% of the to­tal im­port bill.

Pak­istan has a well or­ga­nized sys­tem for im­ports and ex­ports of chem­i­cal ma­te­ri­als which are then con­verted into more than 70,000 prod­ucts for in­dus­try as well as goods that peo­ple de­pend on in their daily life. But un­for­tu­nately im­ports are much higher than ex­ports. Pak­istan needs to en­hance its chem­i­cal ex­ports which would re­ally help in the growth of the coun­try’s econ­omy. Ac­cord­ing to the Chem­i­cal In­dus­try Vi­sion-2030, the chem­i­cal in­dus­try in Pak­istan has been clas­si­fied into two cat­e­gories:

The Pri­mary Chem­i­cal In­dus­try com­prises re­finer­ies, petro­chem­i­cal plants and nat­u­ral gas plus, met­al­lur­gi­cal and min­eral based projects. They also pro­vide feed­stock for the sec­ondary chem­i­cal in­dus­try. The Sec­ondary Chem­i­cal In­dus­try is based on feed­stock ei­ther de­rived from pri­mary in­dus­tries or other al­ter­na­tive sources of raw ma­te­rial like coal, lime­stone, gyp­sum, rock salt, sil­ica and sul­phur.The prin­ci­pal ob­jec­tive of the Sec­ondary sec­tor in­dus­tries is to main­tain con­nec­tiv­ity be­tween prod­ucts and ma­te­ri­als pro­duced by the Pri­mary in­dus­tries and are of prac­ti­cal use for the na­tional econ­omy. The chem­i­cal in­dus­try com­prises com­pa­nies that pro­duce in­dus­trial chem­i­cals which are im­por­tant for the econ­omy, as it con­verts raw ma­te­rial into more than 70,000 dif­fer­ent prod­ucts. This im­plies that the sec­ondary in­dus­tries rely on the pri­mary in­dus­tries for feed­stock and raw ma­te­rial to be used in man­u­fac­tur­ing, pro­cess­ing, blend­ing and fab­ri­cat­ing plants for petro­chem­i­cal in­ter­me­di­ates, poly­mers, plas­tics, steel, non-fer­rous met­als, min­er­als, agri­cul­tural and other mis­cel­la­neous prod­ucts. These in­dus­tries use medium-to highly so­phis­ti­cated tech­nol­ogy and have a range from light to medium cat­e­gories. The chem­i­cal in­dus­try is more var­ied than any other in­dus­try be­cause its prod­ucts are uni­ver­sal.

Chem­i­cals are im­por­tant as they play the role of a build­ing block to pro­duce prod­ucts in or­der to ful­fill the ba­sic needs like, shel­ter, food and health. They also are cen­tral to the world of tech­nol­ogy, telecom­mu­ni­ca­tions and of course biotech­nol­ogy. These are used to make a large va­ri­ety of con­sumer goods and have in­puts in agri­cul­ture, man­u­fac­tur­ing, con­struc­tion and ser­vice in­dus­tries. Ba­sic Chem­i­cals which are com­mod­ity ma­te­ri­als in­clude flex­i­ble ma­te­rial, Poly­mers, Petro­chem­i­cals and other de­riv­a­tives and inor­ganic chem­i­cals which make up 35-37% of the chem­i­cal mar­ket Spe­cialty Chem­i­cals are high value-added chem­i­cals with di­verse end-prod­uct mar­ket. Prod­ucts in­clude elec­tronic chem­i­cals, in­dus­trial gases, ad­he­sives, sealants and cat­a­lysts. Spe­cialty Chem­i­cals are some­times re­ferred to as “fine chem­i­cals” and make up 20-25% of the chem­i­cal mar­ket.

The chem­i­cal in­dus­try in Pak­istan is wide­spread. Chem­i­cal im­ports con­sti­tute about 17% of the to­tal im­port bill. Pak­istan has made con­sid­er­able progress in ba­sic inor­ganic chem­i­cals like Soda Ash, Caus­tic Soda, Sul­phuric Acid and Chlo­rine and has ac­quired suf­fi­cient pro­duc­tion ca­pac­ity of these chem­i­cals to cater for the needs of the lo­cal in­dus­try, while sur­plus is be­ing ex­ported. Even then there are some chal­lenges to be coun­tered. The chem­i­cal in­dus­try of Pak­istan is lag­ging be­hind due to these chal­lenges. The main chal­lenge is that it has to rely on its im­ports and for­eign ma­te­ri­als. This does not ben­e­fit the econ­omy and re­sults in pro­duc­tion of ex­pen­sive prod­ucts. The lack of in­dus­trial in­fra­struc­ture and tech­nol­ogy in Pak­istan re­sults in low qual­ity prod­ucts which do not meet the stan­dard. More­over the dis­crim­i­na­tory ap­proach of the in­ter­na­tional com­mu­nity does not in­te­grate the Pak­istan mar­ket into the in­ter­na­tional econ­omy and Pak­istani prod­ucts are not given ac­cess to the in­ter­na­tional mar­ket. More­over the lack of re­sources and weak trade poli­cies of the min­istries also re­sult in the weak­en­ing of chem­i­cal in­dus­try. In or­der to en­hance the chem­i­cal in­dus­try, Pak­istan must adopt the pol­icy of “self-re­liance”. In­stead of re­ly­ing on for­eign de­signs and en­gi­neer­ing it must im­prove its own pro­duc­tion and en­sure high qual­ity of chem­i­cal prod­ucts.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.