Criticality of higher exports highlighted

KARACHI: Prime Minister Imran Khan has said that the PTI government was pursuing policies to support the expansion of local businesses, promote import substitution and exports.

He was addressing the inaugural ceremony of 100,000 tons PVC III Plant of Engro Polymer and Chemicals (EPCL) here on Friday.

PM Imran Khan urged the business community to focus on import substitution and diversification of the export base to support the government’s efforts aimed at achieving sustainable economic growth in Pakistan. He appreciated the pivotal role played by Engro Corporation and its subsidiaries in different sectors of the economy.

Prime Minister Imran Khan inaugurated the new 100,000 tons PVC III Plant of Engro Polymer and Chemicals (EPCL), a subsidiary of Engro Corporation, which will enable import substitution of PVC and boost exports as well.

Set up in 1997 as a joint venture with Mitsubishi and Asahi Glass, EPCL is the only fully integrated chlorvinyl chemical complex and producer of PVC in Pakistan. Since 2015, the Company has invested over $188 million in Plant expansion and other upgrade projects for higher efficiency, reliability, and diversification of operations.

The Plant expansion has been completed with up to $50 million financing support from the International Finance Corporation (IFC) and leveraged global expertise in project execution with a Japanese licensor and Chinese construction team.

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With the addition of new capacity, EPCL can now produce 295,000 tons of PVC per annum to fully cater to the surging local demand, owing to the Government’s favorable construction sector policies, and achieve exports as well.

Through enhanced local production, EPCL will now be contributing around $ 240 million towards import substitution, while the Company has exported PVC resin worth $ 25 million to Turkey and the Middle East markets in 2021.

According to Ghias Khan, President, and CEO of Engro Corporation and Chairman of EPCL, “As a home-grown conglomerate, Engro has always strongly believed in the economic potential of Pakistan and, therefore, we have committed to invest in businesses that help solve some of the most pressing issues of Pakistan.

This expansion is a landmark achievement for Engro, and we are confident that it will reshape the petrochemicals landscape of Pakistan. We fully support the Government’s ‘Make in Pakistan’ policy to promote export-oriented industrialization.

I would like to thank our local teams, global partners, and Government stakeholders, for showcasing exemplary resilience and collaboration for completion of this expansion, despite the challenges posed by Covid-19.”

The PVC demand in Pakistan has grown at a steady rate of 6% each year, with around 70 percent of the consumption going into the construction sector. Besides PVC, EPCL also produces the key raw material of caustic soda for the textile industry, thus, being a valuable supply chain partner for Pakistan’s largest export sector.

Copyright Business Recorder, 2021