Engineering Development Board (EDB) is drafting Chemical Vision 2020 for the development and progress of Chemical Industry. This will also contain an action plan for implementation. The vision will be ready by mid January 2008.
EDB has completed consultations with stakeholders on the development of Chemical Vision, an action plan for the progress of the chemical industry. In the second meeting of the stakeholders held on September 7, under the Chairmanship of Mr. Zahid J. Yaqub, General Manager (Policy), EDB, outlines of the plan were discussed. He informed that the chemical sector is one of the five highest growth and globally traded sectors. The world market for chemical sector during last year remained at US$1.8 trillion and is mainly dominated by USA, Europe and Japanese companies. Pakistan during 2006-07 imported chemicals of nearly US$ 3.6 billion i.e. over 12% of total imports, while Pakistan exports were only US$ 200 million i.e. 1.3% of total exports. The imports were mainly concentrated in the plastics, organic, inorganic and specialty chemical etc. The demand of chemical products mainly the fertilizer inputs, chrlor-Alkali, pesticides and plastic imports for use in packaging, auto, electronics, household items, cables, pipes and fitting etc has increased during the last six years. The higher consumption of chemical in various sub-sectors now speaks of the high potential in local manufacturing, value addition and formulation, he added.
Talking about the problems of the sector, he added that the existing manufacturing capacity is small in level and scale, the infrastructure and processes are old, the productivity levels low and the human resources is in crises like situation, research and development to improve chemical reactions, processes, new molecular formation, beneficiation of locally available minerals remains low. Translation of research into practical use of chemistry and foresight to use the available knowledge, skills and know-how both at the level of industry and universities / institutes is lacking.
Mr. Zahid informed that EDB together with the chemical industry will develop a chemical vision - an action plan by mid January 2008. The first meeting with the stakeholders of Punjab was held on 28th August in Lahore. The core feature of the whole process would be consultative and participatory so that industry could own the vision and play its due role in the implementation process and successfully keeping the plan on the path so jointly determined. A chemical industry development committee having the private-public partnership would continue overseeing the implementation, removing the bottlenecks and irritants in the developmental process of the industry and review of the plan etc, he said.
The stakeholders welcomed the move by EDB and described it as a step in the right direction. They were unanimous in classifying the industry as basic, specialty and petrochemicals for the purpose of vision and action plan. They also emphasized exploitation of local resources, human resource development, improved university-industry linkages.
They demanded pre-announced tariff for at least 5 years, minimum spread between inputs and the finished products, low sales tax and excise duty and abolishing of unfair competition between the organized and un-organized sectors. Incentives in the form of tax breaks were also pleaded by them. Provision of cluster to encourage mutual learning, support and complementation and investment were also supported. Other demands included financial support in the shape of soft loans, consistent supply of gas, standards on health, safety and environment, and development of petrochemical complex.
The meeting unanimously elected coordinator for the vision and decided to form an association / forum for mutual learning, communications, cooperation and to put forward on a regular basis the challenges faced by the chemical industry to seek government support wherever necessary. A committee was formed to finalize the formalities.
The industry was requested to coordinate with the officials of EDB who would be approaching them to collect data for establishing the benchmarks, not available so far.
The meeting was informed that a country level workshop during mid October at Islamabad will be held to finalized recommendations. In the meanwhile, the working groups would start their work on various sub-sectors.
The meeting was attended by manufactures, representatives of marketing companies and research institutes.
