Rs 13 billion industry comes to standstill: ban on plastic bags renders 30,000 jobless

More than Rs 13 billion worth polyethylene bags manufacturing industry in the city has come to a standstill, with the imposition of ban on manufacturing of less than 300 macron polyethylene bags, rendering more than 30,000 people jobless.
According to polyethylene bags manufacturers, the investments in machinery, equipment, infrastructure facilities and manpower associated with polyethylene bags producing industry is around Rs 13 billion. Currently, more than 1000 polyethylene bags producing units operating in the city was employing over 15,000 people. On average, one unit employs around 15 persons.
The manufacturers said that there is no authentic data available on investment. However, according to some rough estimate, the amount invested in import of raw materials, custom duty and taxes paid on them, warehousing, transporation and other allied products is around Rs 12 billion.
Those who become unemployed include unit employees, wholesalers and retailers and rag pickers who pick and sell the discarded bags to recycling industry, and thousands of employees of plastic industries which recycle polyethylene bags and importers of raw material. The manufacturers said that the ban has been imposed on manufacturing of less than 300 micron bags, whereas the manufacturers can not manufacture above 150 micro bags on existing machines.
They also noted that there is no uniformity in law in the country. Just 20 km away from Karachi, in Hub, there is no ban on manufacturing polyethylene bags of 15 micron and above.
They expressed fear that the ban would be fizzle out with the passage of time as people would start bringing polyethylene bags from Hub. Talking to Business Recorder, acting president of Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, said different provincial governments issue different ordinances to ban production of polyethylene bags of different thickness.
Sindh government had passed a bill in 2006 on November 15, 2006 to prohibit manufacture, sale and use of polythene bags including polythene bags below 30 micron thickness in the province.
The bill said: "No person shall manufacture, sell or use black polyphone bags including the polyphone bags below thirty micron thickness and of size as may be prescribed or offer any kind of eatable and non-eatable goods in such polyphone bag". The Government of Punjab issued an ordinance in February 2002 imposing ban on manufacturing of polyethylene bags of less than 15 micron.
The ordinance said: "No person shall manufacture, sell, use black polythene bags or any polythene bags below fifteen micron thickness or offer any kind of eatable and non eatable goods in any black polythene bag or any polythene bag below fifteen micron thickness".
He said that now the city district government has issued a notification banning manufacturing, sale and use of plastic bags of less than 300 micron thickens as a crime, while black plastic bags are completely banned. Violations of this law can be punished with 6 months impairment or Rs 50,000 fine or both.
Sindh Home Department in an order issued on October 16 said the city government has imposed ban on manufacturing less than 300 micron bags in order to protect sewerage lines, open drains, and storm water drainage system from choking and save life of citizens of Karachi. It directed all SHOs to take action against violators.
He said that there must be a uniform law throughout the country. With the imposition of ban on manufacturing less than 300 micron all industrial sectors, including manufacturers of morning bread, cigarettes, toffees, biscuits, textile goods, readymade garments exports etc are facing big problems in wrapping goods.
The bags manufacturers pointed out that cigarette manufacturers use an 18 micron film for packing; biscuit manufacturers use 20 micron film; bread manufacturers use 15 micron bags, etc. They all are in a fix and they may suffer production losses due to non-availability of required packing material.
The polythene bags manufacturers said that the manufacturers of polythene bags are ready to assure the government that they would not produce less than 30 micron bags. They claimed that allegations that plastic industry is ruining the environment are baseless. The increasing pollution problem is more a result of sloppy management of garbage removal and open gutters than the polythene bags industry.
They did not deny that polythene bags are clogging drainage pipes, but insist that there is more a problem of open drainage pipes and uncovered gutters. They said that manufacturing 300 micron bags on present machines is not possible. For manufacturing 300 micron bags and above they requires huge foreign exchange to import new machinery and more raw material. Producing 300 micron bags require more raw material than 15 and 30 micron bags.