Two years have passed since the concept of a petrochemical policy was introduced in Pakistan, and the country is now on the brink of implementing its inaugural policy for the petrochemical sector. This news has generated anticipation and excitement within the industry. However, the long delay since the initial announcement of the policy has left many industry stakeholders puzzled. In this article, we will explore the details of Pakistan’s petrochemical policy and its potential impact on the country’s industrial landscape.
According to reports, the petrochemical policy aims to attract investments into the midstream industry, fostering the local manufacturing of petrochemicals like polypropylene, polyethylene, LAB, and more. The Engineering Development Board (EDB) is currently engaged in consultations with public and private sector stakeholders to finalize the Petrochemical Policy of Pakistan (2023). The policy’s primary goal is to promote the production of petrochemicals, ensuring a sustainable supply of essential raw materials for downstream industries such as textiles, construction, automobiles, pharmaceuticals, and more.
A draft of the policy was submitted to the Ministry of Industries & Production in July 2023 and is now under review by relevant Ministries/Divisions. It is expected to be presented before the Economic Coordination Committee of the Cabinet for consideration.
The policy is anticipated to offer various benefits, including ensuring a stable supply of raw materials for a wide range of industries, from textiles to automotive. While specific details of the policy are not yet public, the industry is eagerly awaiting its formal announcement.
Jahangir Piracha, CEO of Engro Polymer & Chemicals, commended the government for prioritizing the development of a long-term roadmap for the petrochemical sector. He believes that this policy could be a catalyst for industrialization in Pakistan and emphasizes the need to attract substantial investments for capital-intensive projects. Asif Jooma, CEO of Lucky Core Industries, also highlights the importance of petrochemicals for multiple industries and the role of investments in fueling economic growth.
While this is the first dedicated petrochemical policy in Pakistan, the country has a history of industrial policies. However, it remains to be seen whether this policy will be more successful than its predecessors.
Pakistan is on the verge of introducing its first petrochemical policy, which aims to stimulate local manufacturing of petrochemicals and provide a stable supply of raw materials for downstream industries. While the specific details of the policy are yet to be revealed, industry stakeholders are hopeful about its potential to boost industrialization and economic growth in the country.