How To Achieve Growth of Chemical Industry in Lahore Pakistan?
The Chemical Industry in Lahore Pakistan
During 2015-16, The chemical industry in Pakistan produced 345,000 tons of soda ash, 63,000 tons of sulfuric acid, and 12,000 tons of chlorine gas. The chemical industry produces six hundred and eighty-one million grams of various products, including polishes, creams, footwear, and detergents. It is one of the oldest industries operating in Pakistan. After liberalization in 1990, the chemical sector was exposed to international competition and has experienced reduced output for several years.
To achieve growth in the chemical sector, Pakistan must find a significant trading partner.
Only India provides a steady flow of revenue from this market segment. The country is responsible for only 0.02% of the world’s total chemical production and ranks 93rd in terms of the total size. With so many opportunities in the chemical sector, a successful and growing industry is essential to advancing the country’s economy. With a growing population and a robust economy, the chemical industry in Pakistan has great potential for expansion.
Lack of foreign exchange is another major issue for the industry.
While the government’s fiscal policy is supportive of the local industry, it lacks consistency in its chemical quality. This leads to increased imports of chemicals. Furthermore, most local industries are not able to sustain contracts beyond ten years. As a result, most customers prefer to source chemicals from overseas sources. As a result, local manufacturers have to import raw materials like PQ Chemicals is doing.
The chemical industry is still at a nascent stage in Pakistan.
Most of the country’s demand for basic chemicals is met by imports, while the country’s production of intermediates is low. The country’s chemical sector contributes a $7.5 billion trade deficit and Rs35 billion in taxes annually. It also supports 400,000 jobs. While the chemical industry in Pakistan is underdeveloped, it is still vital for the manufacturing sector.
However, in order to grow, Pakistan’s chemical industry needs a more significant trading partner. With only 0.02% of the world’s total chemical production, Pakistan’s chemical industry ranks 93rd in size. If the government wants to boost its exports, it will need to attract more foreign investors. Moreover, its local chemical industry should be able to sustain steady growth. The country’s economic status will benefit from increased exports and foreign investments.
Why the chemical industry is an important sector for the country?
Chemical production is vital for the development of the country. The industry also provides employment for a high-skilled workforce in Lahore as well in Pakistan. While the chemicals industry is a vital part of the economy, the sector has not yet reached its full potential. The government has taken steps to support the growth of the chemical industry. Its monetary policy should encourage more foreign investment in Pakistan.
The government should create an environment that encourages the chemical industry in Pakistan to meet the growing demand for products and services.
It should create a capability for manufacturing chemicals in Pakistan and ensure self-sufficiency in the sector. It should provide sufficient incentives and foster innovation to help local industries thrive. There should also be a more skilled labor force in Pakistan. The local industry needs to be able to meet the growing domestic demand.
The chemical industry in Pakistan needs to be more efficient.
It needs more raw materials to develop more products. The country’s natural resources include coal, iron ore, phosphate rock reserves, rock salt, and a range of other minerals. The oil sector is the largest contributor to Pakistan’s overall GDP, so the development of the industry is necessary to boost the country’s economy. If this is achieved, it would save a significant amount of foreign exchange.
The chemical industry in Pakistan needs to become more competitive.
It needs to improve its chemical industrial infrastructure to produce high-quality chemical products. It must also develop a competitive foreign trade environment to ensure that it can compete in the international market. By doing so, the country will have an edge over other countries in the region. In addition, it will also enable the chemical industry to flourish in Pakistan. The government should also work with other stakeholders to create a strong business environment for its citizens.
