'Pakistan can earn $300m through PVC exports'
Business
Currently, Pakistan’s per capita PVC consumption stands at 1.2kg versus a global average of 6.1kg
ISLAMABAD (APP) - Significant investments to expand and improve the efficiency of domestic PVC production have created an opportunity for Pakistan to earn $300 million through the export of surplus volumes and products.
Currently, Pakistan’s per capita PVC consumption stands at 1.2 kg versus a global average of 6.1 kg. Growth in our per capita consumption will be driven by rising per capita income, increasing urbanization, and robust domestic manufacturing in the coming years.
Through various customer engagement and market development initiatives, such as a retail outlet – think PVC, Engro Polymer and Chemicals Limited (EPCL) is actively promoting various standardized, high-quality PVC products.
At a media briefing on Wednesday, Mahmood Siddiqui, Vice President of the Manufacturing wing of the Company, highlighted, “Since 2015, the Company has invested over USD 188 million in Plant expansion and other upgrade projects for higher efficiency, reliability, and diversification of operations. In 2021, EPCL enhanced its PVC capacity to 295,000 tons per annum, which is sufficient to fully cater to the local demand and achieve exports as well.”
Muhammad Idrees, Chief Commercial Officer at EPCL, said that “the Company is collaborating with TDAP to explore global markets for export of value-added PVC downstream products. In the last two years, the Company exported surplus products worth USD 48 million to Turkiye and Middle Eastern markets, while import substitution of around USD 300 million contributed significantly toward solving Pakistan’s balance of payments situation. The downstream PVC industry can fully utilize its excess capacity and help in earning USD 300 million in valuable foreign exchange by standardizing and improving the quality of finished products.”
The Company’s 2030 vision is to become a globally-competitive PVC producer, prioritizing exports, and increasing the domestic per capita PVC consumption to international levels. As part of its business strategy, the Company is also looking to position PVC as the “Material of Choice” with a primary emphasis on value-added products.
Alas, for the Company to enact its plans and maximize the potential of PVC exports while also meeting increasing local demand, it is equally imperative for the Government to ensure a conducive business environment with the availability of the right policies and necessary utilities.
