Karachi, May 31, 2023: Pakistan is poised to capitalize on significant investments in domestic PVC production, with the potential to earn $300 million through the export of surplus volumes and products.
Engro Polymer & Chemicals Limited (EPCL), a leading player in the industry, is spearheading efforts to promote standardized, high-quality PVC products and explore global markets for value-added downstream products.
Despite a per capita PVC consumption of 1.2 kg, significantly lower than the global average of 6.1 kg, Pakistan foresees a growth trajectory driven by rising per capita income, urbanization, and robust domestic manufacturing. EPCL’s customer engagement and market development initiatives, including the establishment of a retail outlet named thinkPVC, are aimed at propelling per capita consumption.
Mahmood Siddiqui, Vice President Manufacturing at EPCL, emphasized the company’s commitment to expansion and operational enhancements. Since 2015, EPCL has invested over $188 million in plant expansion and upgrade projects to achieve higher efficiency, reliability, and diversification. With its PVC capacity now expanded to 295,000 tons per annum, EPCL is well-positioned to cater to both domestic demand and exports.
Muhammad Idrees, Chief Commercial Officer at EPCL, highlighted the company’s collaboration with the Trade Development Authority of Pakistan (TDAP) to explore global markets for value-added PVC downstream products. In the last two years alone, EPCL has exported surplus products worth $48 million to markets in Turkey and the Middle East. The resulting import substitution of approximately $300 million has made a substantial contribution to resolving Pakistan’s balance of payments situation. By focusing on standardization and quality improvement, the downstream PVC industry can effectively utilize its excess capacity and help Pakistan earn $300 million in valuable foreign exchange.
EPCL’s vision for 2030 centers around becoming a globally competitive PVC producer, prioritizing exports, and elevating domestic per capita PVC consumption to international levels. The company’s business strategy places a strong emphasis on positioning PVC as the “Material of Choice” and further developing value-added products.
To fully realize the potential of PVC exports and meet growing local demand, the government’s support is critical. Measures such as tax breaks, subsidies, and improved access to credit can provide the necessary backing for the PVC industry. Furthermore, investments in infrastructure, including transportation networks and ports, will facilitate the export of PVC products. The industry’s commitment to enhancing quality control standards and investing in marketing and promotion efforts will also contribute to expanding its presence in potential export markets.
Addressing these challenges will enable Pakistan to establish itself as a prominent PVC exporter, leading to economic growth and job creation. With a conducive business environment and strategic measures in place, Pakistan’s PVC industry has the potential to strengthen the nation’s economy and contribute significantly to its global trade endeavors.
READ MORE: KCCI raises concerns over retrospective CVT implementation on motor vehicles
