Chemical and Dyes Industry
Chemical and Dyes Industry
Chemical industry in Pakistan is widespread, and a close approximation of investment in chemical sectors ranges between Rs. 550 - 600 billion. The chemical related imports constitute about 17% of the total import bill. There are three general classes of products in this Sector:
The Structure of Pakistan's Trade
Import & export of chemicals of Pakistan is depicted below:
- Basic chemicals both inorganic and organic such as acids, alkalies, salts, ethylene, propylene, benzene, toluene, xylene etc
- Chemical products used in further manufacturing i.e. intermediates such as pure Terephthalic acid, phthalic anhydride
- Finished chemical products for end use or ultimate consumption; synthetic fibers i.e. polyester, PVC, polyethylene, polypropylene, polystyrene etc
Above graph shows the consolidated figures for imports & exports such as chemicals, fertilizers, plastics, rubber, medicines, dyes & pigments, soaps & detergents, and specialty chemicals for the period from 2002-03 to 2008-09. Imports have increased from 768 Million US $ in 2002-03 to 5,166 Million US $ in 2008-09 and on the other hand our exports also showed an increase from 118 Million US $ in 2002-03 to 411 Million US $. Share of chemicals in our total imports is about 15% while its share in exports is about 2.3%. The total imports of plants and equipment used for the manufacture of chemicals contributes about 23% of overall imports of Pakistan.
Collective share of these two categories i.e. plants/equipments and chemicals is about 38% of country's overall imports and among major contributors of country's imports.
The structure/composition of Pakistan's exports of chemicals for the year 2008-09 is depicted below:
Plastics stand top export with a share of 41.6%. Second is pharmaceutical with a healthy share of 28.3%. Third largest one is of specialty chemicals contributes about 18.2% of which perfumes & cosmetics 2.6%, coatings & inks 3.5%, dyes & pigments 1.4% and other specialty chemicals share is around 10.7%. Inorganic chemicals have comparatively very low exports of 4.5% while Pakistan have significant surplus available for exports of most promising products in this sub-sector such as soda ash, caustic soda, chlorine, calcium chloride, bleaching powder etc. Petrochemicals share is about 4% in which major contributors are phthalic anhydride, dioctyl orthophthalate etc. soap & detergents contributing about 3.4% while share of fertilizers is 0.1%.
Traditionally, exports from Pakistan have been dominated by textiles, cotton, ready-made garments and leather products. These comprise about 60% of total exports from Pakistan, and are predominantly manufactured by low technology and labor intensive processes.