petrochemical industry in pakistan.

Pakistan\'s chemical industry, excluding chemical fertilizers, is still in its infancy.
The production capacity of the chemical industry can only meet 10 per cent of the national demand.
However, there has been an unprecedented expansion in the fertilizer industry, especially in the field of nitrogen fertilizer, resulting in an excess of urea fertilizer currently being exported by the country.
The current chemical industry includes basic chemicals, medicines and synthetic fibers.
Existing petrochemical production facilities * no production facilities for petrochemical e in building blocksg. ethylene exist.
In addition to urea and other nitrogen fertilizers, Pakistan\'s capacity to produce the first generation of petrochemical products locally is seriously inadequate.
The main reason may be the lack of domestic gas and Naptha cracking facilities, or the separation of light gas from refineries.
Therefore, in addition to nitrogen fertilizers, local facilities are mainly limited to the production of nylon and polyester fibers based on petrochemical-related imported intermediate raw materials such as hexone, PTA and M. E. G.
In terms of olefin, Pakistan has a capacity of only 5,000 tons per year to produce PoyvinyleChloride (PVC)
Based on an out-
Expired acetylene process using syrup as raw material.
In the past five years, PVC production in the factory has been within the scope of 2000.
There are 5000 tons per year.
The annual production capacity is about 5,000 tons of low density polyethylene (LDPe)
Has not been used since the age of 70
The factory was closed because it was out of stock.
Outdated technology is not conducive to production and heavy economic burden.
* Pakistan has been importing due to negligible local production (
Among other petrochemical products)
Thermoplastic resin near allher, which includes polyethylene (PE)
Polypropylene (PP)
, Polymerization chlorine (PVC), Polystyrene (PS)etc.
It is estimated that the current annual import of thermoplastic resin is about 168,909 metric tons recorded in 1989. 90.
Despite restrictions on the import of raw materials and processing equipment, the plastic processing industry in Pakistan has been developing for many years.
At present, the industry is able to produce various types of plastic products, from complex products such as pipes, wires and cables, to household goods, footwear and packaging materials.
It is estimated that the country\'s annual processing capacity of more than 2000 processors is approximately 80,000 metric tons, with a major share of the extrusion process followed by injection molding.
Synthetic fibers produced locally are limited polyester and polyester fibers and yarn polyamine (Nylon)
There are three factories in total for the manufacture of polyamine fibers and yarns with a total capacity of about 3,000 metric tons.
These three factories are based on imported hexone, and the output of these factories has been around 3000 metric tons per year in recent years.
Prior to 1980, there was no facility for the production of polyester fiber and yarn and the requirements were met through import.
In 1982, two factories of polyester fiber/yarn, namely National Fiber Co. , Ltd. (
Public sector projects)and ICI (
Multinational companies)
They started their commercial production.
The production capacity of the two factories is 3000 metric tons of fiber and metric tons of yarn, respectively.
These factories use imported DMT/TPA and ethylene glycol as basic raw materials.
In addition, eight polyester yarn manufacturing plants based on imported polyester fiber
It is estimated that the annual production capacity of chips is 10,000 metric tons. Aromatics (BTX)
The production facilities of BTX have been established at 1979 National refinery Co. , Ltd.
These products can produce 25,500 metric tons of btx, of which benzene is 5000 metric tons.
AndXylenes Tolune 9,000 tons 11,500 tons.
The factory is aimed at the local export market.
In the first few years of operation, the output of the unit was kept at 10,000-
13,000 metric tons.
Recently, production has fallen sharply due to domestic and non-foreign restrictions
Availability in export markets.
Petrochemical end-
Although the product market is restricted, most of the petrochemical products are imported, with high tariffs and tax rates on imports and restrictions on import policies.
Pakistan has expanded its petrochemical industry in the pastproduct market.
For example, in the case of plastic materials, the tax rate is about 200 of the C & F value. Thepetro-
Chemical products that are being consumed include plastic materials, synthetic fibers.
Synthetic rubber and detergent. Plastics.
The plastic market includes resin, paper and finished products.
Plastic Resin Market (thermo-plastics)
It was initially estimated that the area was around 152,000 metres in 1990. T.
Polyethylene and PVC materials are estimated to be at this level if 65,000 and 47,000. T.
In 1990, respectively.
Requirements of Polyprolene (PP)
Has increased significantly from 17 thousands meters. T. in 1985-
86 to 62,000T. in 1989-90. [
Omitted table data
The synthetic fiber market includes polyester, nylon, viscose and acrylic.
Polyester and yarn account for about 70% of the synthetic fiber market.
It is estimated that the demand for polyester in 1990 was about 75,000 metric tons, with the main share of textile/filament (i. e. 70 per cent).
Synthetic rubber in view of the small local type and rubber products industry, the market size of synthetic rubber is relatively small.
The main synthetic rubber is butadiene rubber (SBR).
It is estimated that the current annual consumption is 5,000 metric tons.
With the improvement of living standards and the speed of urbanization, the market of synthetic detergent has been expanding.
Current market size of synthetic detergents for household cleaning, washing and bleaching purposes-
The holding Department is around 2000 metric tons per year.
Most of Pakistan\'s Thermoplastic resin requirements are imported.
The imported products come from the United States, Western Europe, Britain, Hungary, South Korea, Japan, China, Qatar and other countries. The imported products mainly come from China, South Korea and eastern European countries because the prices are relatively low.
There are no production facilities for basic products such as ethylene, propylene, Ding and methanol in China. as a result, through import, almost all the requirements of the intermediate and final products of these first generation products are met.
Thermal plastic imported this year (
Polyethylene, high density polyethylene, PP, PVC and PS)
In this country, it is estimated to be more than 0. 1 million tons.
The potential demand for thermal plastics is much higher than the import level, because their consumption growth has been curbed through various measures, such as raising import tax rates, imposing customs surcharges, Iqra surcharges and restricting imports despite these measures, certain types of plastic processing machinery, the plastics processing industry in Pakistan is quite developed, more than 1000 processing units are engaged in the manufacture of various plastic products, from mechanical products to household products.
Store products and packaging materials. DEMAND OF END-
ESCAP regional products (
Including Pakistan)
Main thermoplastic terminal-
The product demand is low density and high density, and polyethylene, polypropylene, polyethylene, chlorine, polyethylene and polyurethane account for 90 of the total plastic demand.
Among these thermoplastic materials, there is a high demand for PE, PVC and PP.
Petrochemical end-
Product demand forecast (1980-90)
Developing countries of ESCAP (
Including Pakistan)
It is developed with the help of growth rate.
Each country and individual;
The product uses 1980 consumer data to apply different growth rates (givenbelow)
As base
The growth rate of each country (
Including Pakistan)
Given past growth in demand for the general economy, growth in major consumer areas and expansion/establishment of base oil, it has been selected
Chemical production facilities.
Generally speaking, for countries where the penetration rate of petrochemical products is still low, as well as basic or evendown-
In the past decade, current production facilities have been established or are expected to be put into operation. During 1985-
90-phase Petrochemical Terminal requirements-products(thermoplastic)
ESCAP developing countries, including Pakistan (1965-80)
Compound annual growth rate of 8%.
Meet the needs of petrochemical terminals-
Since the onset of major industrial developments in Pakistan in 1960, Pakistan\'s products for the establishment of basic petrochemical facilities have been active.
The project was subsequently included in almost all development projects.
The project was subsequently included in almost all development plans.
Initially, the planned facilities were based on naptha feed.
Later, the discovery of the associated gas indicated a shift to the gas feed and to another native raw material. e.
Syrup is also being considered.
In addition to the uncertainty of feed stocks, market constraints and resource savings, the factors responsible for not implementing the plan are as follows :-
* International market conditions * increased capital expenditure due to continued inflation * lack of interest from potential sponsors I. e.
Due to the expected overcapacity in developed regions, multinational companies.
* Transfer priorities to other important sectors of the government.
The establishment of Pakistan\'s petrochemical industry requires the highest level of basic policy decisions to accept the need for the establishment of the industry and its economic cooperation.
Once this is done, a range of policy decisions and institutional measures will need to be taken to make the establishment and operation of the industry a success.
These decisions and measures include:
* Special funds allocated at the petrochemical end-
Product Industry * import tariff concessions for raw materials * tariff and other types of protection.
* Tax incentives * promotion of investment in downstream industries * Human training assistance * encouragement of local needs * Support Services Pakistan currently has a small petrochemical market size
Compared to their counter, the product
Part of developed regions.
The difference between per capita consumption level and developed regions (
Including Pakistan)is quite high.
In 1981 developing regions, the per capita consumption of thermoplastic plastics is between 2-6 kg.
Compared with developed regions, per capita consumption is between 20 and 25 kg.
This situation exists for the following reasons :-
Pakistan is still in the initial stage of development, with low GDP per capita, low living standards, easy access to natural materials, and strong consumer resistance to turning to synthetic materials (Petrochemicals)exist.
* The market only limits urban areas to a certain extent.
* High ratio of Dutieson (
Primary Products)
Tax and restrictive import policies limit the growth of petrochemical products.
Demand/supply gap for petrochemical terminals
The products of the ESCAPregion are given in aggregate as follows :-
Current Petrochemical Terminal-
Product Supply/GapThermoplastics current demand for production facilities finalproduct (PVC)
Only in Pakistan and acetylene (
From calcium carbide)
As raw material
The installed capacity is 4050 tons per year. Other end-
Only products are imported to meet the requirements of the state.
Inconsistent government policies, financial difficulties and lack of technical knowledge are
The establishment of petrochemical industry.
Due to poor economic conditions, the production of petrochemical facilities in developing countries, including Pakistan, is currently at a low level.
In developing countries, capacity utilization is generally low in addition to economic conditions and market constraints.
These factors are :-
* Lack of training and experience for operators;
* Technical support to developed countriesup;
* Low level of technical knowledgehow; * non-
Availability and delayed procurement of spare parts for equipment.
Developing countries in the ESCAP region, including Pakistan
The production capacity of products in 1977 was 641 thousands. M. T.
This figure was 1,193 per cent during 1979. T.
These increased to 1,570,000 m during 1980. T.
In three years, Pakistan has the lowest capacity among ESCAP countries.
A total of 10,000. T.
During the period from 1977, 5 per thousand. T.
During the period from 1979, 5,000 metres again. T.
PVC only during 1980.
Only 5,000. T.
Provided during the period from 1977.
The production capacity of PVC in India increased from 80,000. T.
Km. T. during 1980.
South Korea ranks first in the production growth of terminal products
Petrochemical Products (thermoplastics).
Conclusion The petrochemical industry is a highly capital intensive industry, which requires a large amount of capital output. lay.
Due to the limited capital resources of developing countries, industrial financing is crucial.
In developing countries, investments in petrochemical products compete with other priority areas, such as the provision of basic needs and development infrastructure to the majority of the population.
Due to local imports, most of the investment needs of petrochemical plants in developing countries are foreign exchange, and the main proportion of financing and raw materials will be arranged by the source countries.
Development must therefore depend on developed countries and the United Nations.
Financial transactions in this important industry. In -
Capacity is part of the arrangement of such large-scale financing by developed countries, and the supply of raw materials by oil-producing countries will continue to hinder self-sufficiency in primary and final
Petrochemical resin products.