Assignment # 01

Course title: Applied Chemistry

Submitted to: Prof. Bisma Tariq
Submitted by: Minahil
Roll no: 14
Submission Date: 12 December 2024

Department of Chemistry
University of Central Punjab

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 Table of Contents

Chemical Industries in Pakistan……… 03

Uses of Chemicals……… 03
Major Players in Industry……… 04
Uses of Raw Materials……… 04
Chemical imports and their effects……… 05
Challenges faced by Industries……… 06
Opportunities for Industries……… 06

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Chemical Industries In Pakistan:

The chemical industry of Pakistan plays a pivotal role in the country’s economy, accounting for
about 4.5% of its overall exports and also making up approximately 12% of total imports. In ad-
dition, the sector continues addressing forward link industries, such as automobile industry in Pa-
kistan, textiles, leather goods, shoe, furniture and food and drinks product.
Also, surfactants, necessary for oil refining and oil extraction companies, are also used in back-
wards-linked industries chemical products.
Factors such as domestic demand, availability of raw material, government policy and protection-
ism, foreign investment, technology and regional integration has contributed to the growth of
chemical industry in Pakistan.

Uses of Chemicals In Industries

Chemical Industry of Pakistan uses and consumes thousands of chemical products on a daily basis.
The following are examples of common industrial chemical products.

Mining: All chemicals and their derivatives used as explosives, drilling fluids, flotation reagents,
leaching agents etc.

Oil and gas: These consist of lubricants, solvents, corrosion inhibitors, biocides etc., useful in
exploration, production, refining, and transportation of oil and gas.

Textile: These include the substances used to prepare cotton and other textiles, such as dyes, pig-
ments,bleaches,softeners and finishes.

Fertilizers are used to increase soil fertility and crop productivity. Examples of these include urea,
ammonium nitrate, and diammonium phosphate (DAP).

Pesticides are used to protect crops from pests and illnesses. They include insecticides, herbicides,
fungicides, rodenticides, and more.
Pharmaceutical: These comprise excipients, intermediates, active pharmaceutical ingredients
(APIs),another materials used in the production of medications and vaccines.

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Paints and coatings: are used to decorate and protect surfaces and objects. They comprise pig-
ments, solvents, resins, additives, and more.

Cement: A number of elements, including chalk or marl, limestone, and shells, are frequently used
to make cement. These are combined with other materials like iron ore, silica sand, blast furnace
slag, slate, clay, and shale.

Major Players in Industry

Pakistan's chemical industry is a vibrant, varied sector that creates a vast array of goods for a
variety of uses. It can be broadly divided into five categories: pharmaceuticals, basic chemicals,
cement, fertilizers, and pesticides.

Majorparticipants:

Fertilizers: Dawood Hercules Corporation, Fauji Fertilizer Company, Fatima Fertilizer Company,
andEngroFertilizers
Pesticides: FMC Corporation, Four Brothers Group, UPL Limited, Bayer Crop Science, and Syn-
gentaPakistan
Basic chemicals: Lucky Core Industries, Descon, Ittehad Chemicals, and Sitara Chemical Indus-
tries
Pharmaceutical companies include GlaxoSmithKline Pakistan (GSK), Abbott Laboratories Pa-
kistan (ABT), Searle Pakistan (SEARL), Getz Pharma, and Karachi Chemical Industries (KCI
Pharma). Cement companies include Fauji Cement, Bestway Cement, Lucky Cement, and DG
Cement.

Use of Common Raw Materials in Industry

Some of the key raw materials used in the chemical industry in Pakistan are:
Caustic soda:

This is among the most fundamental raw materials utilized in Pakistan's chemical sector. It is also
utilized in 85% of other sectors, including food processing, paper, textiles, soap, detergents,
leather,food processing and more.

Polyvinyl Chloride:

PVC is mostly utilized in Pakistan for the production of pipes, fittings, cables, profiles, and shoes.
Additionally, consumer goods, packaging materials, and medical equipment employ it. The build-
ing industry is the main driver of PVC demand, making up over 70% of total usage.

Engro Polymer & Chemicals Limited (EPCL), a division of Engro Corporation, is the only pro-
ducer of PVC resin in Pakistan. As raw materials, EPCL also manufactures chloralkali products
such as hydrochloric acid, sodium hypochlorite, and caustic soda.

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Resin:
Plastics, adhesives, paints, varnishes, and other items are made from resin, a synthetic organic
polymer. The primary petrochemical feedstocks used in Pakistani production are naphtha, eth-
ylene, and propylene. ICI Pakistan Ltd., Descon Oxychem Ltd., Engro Polymer & Chemicals Ltd.,
and others are Pakistani producers of resin.

Soda Ash:

Sodium carbonate, often known as soda ash, is a major ingredient in glass, detergents, paper, tex-
tiles, and other industries. The primary natural resources used in its manufacture in Pakistan are
limestone and rock salt.
ICI Pakistan Ltd., Olympia Chemicals Ltd., Sitara Chemical Industries Ltd., and more companies
are among the manufacturers in Pakistan.

Peroxide of hydrogen:
This chemical compound has a variety of uses, including oxidizing, disinfecting, and bleaching.
The primary source of hydrogen peroxide in Pakistan is imported raw materials like hydrogen gas
andanthraquinone.
Among the companies that produce hydrogen peroxide in Pakistan are Ittehad Chemicals Ltd.,
SitaraPeroxideLtd.,andDesconOxychemLtd.

Chemical Imports and Their Effects on Industry:

Methyl Isobutyl Carbinol (MIBC), Sodium Thioglycolate, Ferric Chloride 96%, and Sodium Iso-
butyl Xanthate (SIBX) are among the chemicals that Pakistan imports, totaling $2.4 billion in or-
ganic chemicals and $523.4 million in inorganic chemicals, according to the import data.
Numerous industries, including mining, textiles, leather, pharmaceuticals, and agriculture, employ
these compounds.
The Eurasia Review estimates that imports of chemicals account for roughly 17% of Numerous
problems control the overall import bill. These imports have both beneficial and negative effects
onthesector.
On the one hand, they give people access to high-quality raw resources that are either too costly
or unavailable locally. However, they also make the business more vulnerable to changes in ex-
change rates, increase the trade imbalance, and make it less competitive in the global market.

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Challenges faced by Chemical Industries in Pakistan:

Insufficient Infrastructure:

For the chemical industry to function properly, it needs dependable and effective systems for waste
management, energy, water, transportation, and communication. Nonetheless, Pakistan need im-
proved infrastructure to raise the cost and quality of chemical production and distribution.

ExpensiveEnergy:

High electricity prices and frequent power outages in Pakistan raise operating expenses and lower
chemicalfirms'profitability.

Regulatory Obstacles:

Varied provinces and regions have varied environmental, health, and safety rules that the chemical
sector must abide by. Nevertheless, these rules are frequently convoluted, erratic, and out of date.
Additionally, there should be greater collaboration and openness between the various regulatory
bodies, as this causes misunderstandings and delays for chemical manufacturers.

Limited Ability to Innovate:

To create new goods, procedures, and technologies that satisfy shifting consumer and market de-
mands, the chemical industry needs to be continuously innovative.
However, Pakistan's capacity to innovate successfully is constrained by its low level of research
and development (R&D) spending and a limited innovation ecosystem.

Unbalanced Trade:

Pakistan's chemical sector buys more chemicals than it exports, resulting in a trade deficit. Numer-
ous causes, including poor local demand, high raw material import levies, a lack of export incen-
tives, and competitiveness concerns, are to blame for this.

Opportunities For Industries in Pakistan:

Notwithstanding these obstacles, Pakistan's chemical sector has a lot of room to expand and
prosper. Among them are:

Expanding Domestic Market:

As Pakistan's population increases and becomes more urbanized, there will likely be a greater need
for chemicals. Furthermore, the government's efforts to promote economic growth, such the China-
Pakistan Economic Corridor (CPEC), would increase the need for chemicals across a range of
industries, including industrialization, energy, infrastructure, and agriculture.

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Integration of Regions:
By gaining access to new markets and resources in nearby nations like China, India, Iran, and
Afghanistan, the chemical sector can profit from regional integration.
Additionally, the CPEC project will facilitate commerce for chemical products and improve re-
gional connections.

The process of diversification:

By creating new value-added goods that target niche markets like specialty chemicals, bio-based
chemicals, green chemicals, and nanomaterials, the chemical industry may expand the range of
products it offers. Nevertheless, compared to commodity chemicals, these goods have reduced
competition and larger margins.
Creativity:
Innovation can be used by the chemical industry to increase sustainability, efficiency, quality, and
production. The government must, however, encourage this by offering financial incentives for
research and development, establishing technological parks and incubators, encouraging coopera-
tion between university and business, and assisting in the defense of intellectual property rights.
Conclusion:
Pakistan's chemical sector has both potential and challenges. To manage the sector, policy support,
stakeholder involvement, and strategic planning are necessary.Furthermore, if it successfully uti-
lizes its potential, it can significantly contribute to improving Pakistan's industrialization, social
welfare, and economic prosperity.

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