After two years of anticipation and speculation, Pakistan is reportedly on the verge of finalizing its inaugural petrochemical policy.
The Engineering Development Board (EDB) is in consultations with various stakeholders to put the finishing touches on the Petrochemical Policy of Pakistan (2023), with the goal of igniting indigenous petrochemical manufacturing.
The policy is expected to attract investments in the midstream industry to enable the production of petrochemicals such as polypropylene, polyethylene, and LAB, ensuring the availability of raw materials for various downstream sectors.
While the specifics of the policy remain undisclosed, the petrochemical industry is eagerly awaiting its release, as it could be a catalyst for industrialization in Pakistan.
Industry leaders, including Jahangir Piracha, CEO of Engro Polymer & Chemicals, acknowledge the policy’s potential to drive substantial investments, emphasizing the importance of attracting both new and existing petrochemical assets. The CEO of Lucky Core Industries, Asif Jooma, highlights the significance of petrochemicals in supporting downstream industries and calls for investments to drive economic growth in Pakistan.
Although this is Pakistan’s first dedicated petrochemical policy, the country’s experience with industrial policies has been mixed.
The policy’s impact on the sector will be closely monitored, and stakeholders are hopeful that it will provide stability and encourage investments. While the Saudi refinery project and the petrochemical policy could bring about positive changes, the sector’s future will also depend on consistency and a large domestic market.
Petrochemicals play a vital role in various industries, including packaging, construction, automotive, and electronics. Despite this, the chemical sector in Pakistan has faced stagnation in output, and it is hoped that investments will lead to growth and economic development.
The introduction of a consistent and comprehensive policy is expected to attract large-scale investments, facilitating the development of the petrochemical sector and providing valuable support to downstream industries.