Lahore: The chemical industry in Pakistan, despite facing significant challenges such as global competition and insufficient government policy support, continues to grow robustly, CEO of Surfachem and Vice President of the Pakistan China Joint Chamber of Commerce and Industry (PCJCCI). Iqbal emphasized the sector's critical role in industrial development during a think tank session at the PCJCCI Secretariat.

According to Pakistan China Joint Chamber of Commerce and Industry, the global chemical industry ranks among the largest sectors, valued at approximately $4 trillion, and includes over 70,000 products. Known as the "mother of industries," it is essential for providing raw materials across various sectors, including automotive, engineering, consumer durables, food processing, and petrochemicals. In Pakistan, about 70 percent of the industrial chemical output is consumed by the larger manufacturing sector.

Iqbal noted that 28 listed companies in Pakistan are currently engaged in producing and marketing a wide range of chemicals, employing thousands. The industry primarily uses locally available raw materials, such as fossil fuels, minerals, metals, and water, to convert into industrial chemicals. Despite low competition, the sector has seen profits increase, with earnings growing by 24 percent and revenues by 15 percent annually over the past three years.

Exports, however, remain limited. In 2020-21, chemical exports were valued at $1.15 billion, accounting for just 4.54 percent of the nation’s total exports. Key export destinations include Afghanistan, Bangladesh, the United Arab Emirates, Vietnam, and Turkiye, with products such as plastic materials and pharmaceuticals leading the export list.

Iqbal projected that Pakistan's chemical market could potentially reach $20 billion, given the growth of the domestic large-scale manufacturing sector. He argued for greater investment in the industry, citing the potential for import substitution and export expansion. Iqbal called for government support through a comprehensive policy framework and action plan to foster a conducive environment for investment and capacity-building in the sector.