Pakistan is facing a few challenges, for example in terms of its exchange rate and how it is impacting business costs, but in the long term Pakistan will progress positively, said Oscar Wezenbeek, Managing Director for AkzoNobel Decorative Paints in South East and South Asia.
"Challenges are faced by every country. Pakistan is more vulnerable in times like these because many of our raw materials are imported from outside the country and the exchange rate significantly impacts our business position. Raw material prices in general have been unstable in the paint industry. Compounded with the exchange rate fluctuations, this can impose a challenge," he said while talking to Business Recorder here on Saturday.
However, he seems optimistic about the growth prospects in the country. "If you look at the demographics of the country and how the middle class is developing, Pakistan is full of promise," he added. Wezenbeek averred that Pakistan has always been an important country to AkzoNobel. "It is not only a colorful country with colorful people, we also see it as a country with immense growth potential. We have always admired the commitment of the Pakistan team and that is evident by their performance, not only in Pakistan, but within AkzoNobel as well," he added.
When asked about Pakistan in terms of business, he said in terms of the business landscape of Pakistan, we believe that AkzoNobel enjoys a very good market position. "We are clearly the market leader, but Pakistan has a fragmented paint industry. There are lots of players with small market share. Another concern for us is the informal economy which can create an unlevel playing field for many companies," Wezenbeek added. However, he said, there is definitely movement; they see economic movement in the right direction. "So, we see it as an area in which we would like to invest and grow," he added.
Talking about the South Asian markets as whole, Wezenbeek said what he really likes about this region is that it has great growth potential and attracts investment despite global challenges.
Elaborating on AkzoNobel's sustainability agenda, Wezenbeek averred that it can be summarized into 'people, planet and paint'. "That is how we treat our people, our suppliers and inspire and empower the communities around us. This is also translated to how we consistently innovate to give our customers choice and competitive advantage through product and service offerings designed to bring tangible benefits and deliver positive social and environmental impact. Broadly speaking, it encompasses how we protect the environment and preserve our planet to realize our ambition to reduce waste, become carbon neutral and transition to renewable energy by 2050," he added.
"We invest significant time and energy to ensure that we practice what we preach. I was very happy to inaugurate our solar panel energy project at AkzoNobel Pakistan's head office in Lahore last year. The installation will provide 520MWH/year of green energy and reduce 387,000 kg of carbon emissions a year. This equates to 10,000 trees grown for 10 years.