Pakistan Chemical Manufacturers Association (PCMA) has stressed the need for setting up joint ventures with the Chinese counterparts to make the local chemical sector a self-reliant industry. In this regard, the Association's Secretary General Iqbal Kidwai held a meeting with President Pak-China Joint Chamber of Commerce and industry (PCJCCI) Wang Zihai on Wednesday.
Kidwai said that chemical industry forms the fabric of the modern world; it converts basic raw materials into more than 70,000 different products, not only for industry, but also for all the consumer goods. He briefed the PCJCCI president about the potential of chemical manufacturing and processing in Pakistan and said that PCMA vision is to transform chemical industry from import to export-oriented industry.
In the absence of Naphtha Petro-chem Cracker Complex, down-stream industry of Pakistan is dependent on imports. Pakistan's chemical imports constitute around 17 percent of the total import bill, he said and pointed out that Pakistan was spending over $5-6 billion every year on import of chemicals with an average increase up to 5-8 percent in the coming years.
He said that despite enormous potential, the sector could not be tapped to its maximum due to some major constraints that include; high investment, dependence on expensive imports, lack of industrial infrastructure and technology, lack of financial resources, energy shortages and weak trade policies all are the obstacles that ultimately result in the sluggish growth of chemical industry.
The PCJCCI president agreed to the proposal and said that joint projects between Pakistan and China could explore the potentials for the larger interest of both the nations. He said that chemical industry was the third largest sector in China accounted for nearly 13 percent of the nation's GDP but despite massive chemical manufacturing, the need for more and more chemical products was found in China.
He said that almost all economic sectors in China rely on chemicals goods, particularly in the areas of construction and car manufacturing. At present, China has excelled in the production of photovoltaic, wind turbines, fluoro coatings, food additives, eco-friendly adhesives, plastic additives and water-treatment chemicals.
He assured his cooperation for inviting Chinese investors and delegations to come and explore the potential existing in Pakistan. He agreed to the proposal of PCMA that the chemical manufacturing must be made part of CPEC and asked for providing a feasibility report to be taken with Chinese government for seeking collaboration of Chinese investors.
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