Chemical Industry

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Pakistan – Chemical Sector

A.      Pakistan Economic Overview

 

B.      Overview of Chemical Sector in Pakistan

Pakistan’s chemicals industry is nascent and meets around 10% of the country’s needs. With a weight of 1.72% of weight in Large Scale Manufacturing (LSM), the chemical sector of Pakistan contributes around 4.5% in exports and its share in imports is around 12%. Pakistan’s petrochemical sector market size stood at $ 5.3 Bn in 2022 with local production contributing $ 1.8 Bn and the remaining $ 3.4 Bn coming from imports. The petrochemical industry plays a significant role as it provides the basic raw material for the daily use of products like plastics, soaps, etc. including petroleum and other products.

 

·         Pakistan’s reliance on imported chemicals has reduced over the years as the local companies invested more to increase their production capacity and hence market share. The chemicals sector plays a vital role in the development of forward-linked industries like textile, leather, footwear, furniture, automobile, food, and beverages. Except for some chemicals, raw material for many basic chemicals is available locally.

·         The market size is projected to reach $20 billion fueled by the country's growing large-scale manufacturing sector. This translates to significant potential for companies entering the market.

·         There is a need for import substitution through investment along the value chain and industrial cooperation, especially, with China which could bolster Pakistan’s potential for export led production as well as provision of raw materials.

·         The government acknowledges the sector's importance and actively promotes investment. Initiatives like the "ease of doing business" reforms aim to create a more investor-friendly environment.

C.      Investment Incentives in Pakistan

The Pakistani government is rolling out the red carpet for investors in the chemical sector. To make setting up shop more attractive, the government has implemented a package of incentives. The Tax Incentives include: 

• Tax breaks: Investors may be eligible for tax holidays, exemptions on import duties for machinery and raw materials, and reduced income tax rates. 
• Special economic zones: The government has established special economic zones (SEZs) that offer a range of benefits to investors, including duty-free imports, tax breaks, and simplified regulatory procedures. 
• Repatriation of profits: Foreign investors are allowed to repatriate 100% of their profits and dividends. 
• Ease of doing business: The government has taken steps to improve the ease of doing business in Pakistan, including streamlining the process for obtaining licenses and permits.

 

   Relevant Industry Association & Contact

  Pakistan Chemical Manufacturing Association : Phone: 042-35312131 

Email: info@pcma.org.pk

 

 

Unlocking Pakistan's Chemical Potential: Invest for a Brighter Future

 

Pakistan's Chemical Industry: A Gateway to Growth

Pakistan's chemical sector is poised for a remarkable transformation. This brochure unveils a landscape brimming with opportunity, backed by a growing domestic market, strategic government incentives, and a chance to be part of a thriving future.

 

A Nation on the Rise

• Chemical Powerhouse: The chemical industry is a cornerstone of Pakistan's manufacturing sector, contributing significantly to GDP and exports.
• Import Substitution: With a growing focus on local production, the reliance on imported chemicals is steadily decreasing.
• Forward-Thinking Focus: The chemical sector fuels Pakistan's development in textiles, leather, food, and other key industries.
• Strategic Location: Pakistan's geographical position offers unparalleled access to regional markets.

A Market Poised for Expansion

• Market Boom: The chemical sector in Pakistan is projected to reach $20 billion, creating a lucrative environment for investors.
• Local Raw Materials: Abundant availability of raw materials reduces dependence on imports and manufacturing costs.

Invest with Confidence: Your Competitive Edge

• Tax Breaks: Enjoy tax holidays, reduced income tax rates, and exemptions on import duties for machinery and raw materials.
• Special Economic Zones: Operate in designated SEZs and benefit from duty-free imports, streamlined approvals, and tax exemptions.
• Profit Repatriation: Repatriate 100% of your profits and dividends with ease.
• Supportive Environment: The government actively promotes investment through business-friendly reforms.

 

Shape a Sustainable Future

• Innovation is Key: Embrace cutting-edge technologies to minimize environmental impact and promote sustainable practices.
• High-Value Production: Explore opportunities in specialty chemicals and cater to niche markets.

 

Invest in Pakistan Today and Be Part of the Chemical Revolution!

 

Contact Us 

Pakistan Chemical Manufacturing Association Phone: 042-35312131.

Embrace the potential, unlock the future. Invest in Pakistan's chemical sector today!

Policy

https://www.dra.gov.pk/wp-content/uploads/2023/10/Annex-IV-National-Hazardous-Waste-Management-Policy-2022.pdf