The Khyber Pakhtunkhwa government has accorded approval to Ghani Chemical Industries Limited (GCIL), engaged in manufacturing, sale and trading of medical, industrial gases and chemicals, to set up a calcium carbide plant in the province.

The development was shared by GCIL in a notice sent to the Pakistan Stock Exchange (PSX) on Monday.

"The Environmental Protection Agency, Government of Khyber Pakhtunkhwa, has accorded approval for setup of calcium carbide (an import substitute) manufacturing plant by the company (GCIL), at Hattar Economic Zone, District Haripur,” read the statement.

GCIL informed that it had already opened Letter of Credits (LCs) for the import of plant and machinery for setting up of calcium carbide manufacturing plant.

Calcium carbide, also known as calcium acetylide, is a chemical compound used in the production of polyvinyl chloride (PVC).

“Currently we are importing and trading in calcium carbide from last many years and this manufacturing facility will not only an import substitute by meeting the entire demand of the Pakistan market but will also open the doors to earn foreign exchange by exporting to Afghanistan, the Middle East, SARC and other countries," the company said.

Moreover, GCIL informed that it also secured LCs for “the fifth Air Separation Unit (ASU) plant of the company for manufacturing of medical and industrial gases at Hattar Economic Zone, District Haripur”.

The chemicals manufacturer added that it has already sought approval from the Environmental Protection Agency, Government of Khyber Pakhtunkhwa for the setup of ASU plant.

GCIL was incorporated in Pakistan as a private limited company on November 23, 2015, under the repealed Companies Ordinance, 1984 and was converted into a public limited company on April 20, 2017.