Govt targets chemical sector reforms to boost exports

February 18, 2026 (MLN): Pakistan is set to implement structural reforms in the chemical industry aimed at improving governance, boosting domestic value addition, and expanding non-traditional exports.

The government plans to address energy cost pressures, financing constraints, regulatory inefficiencies, and customs and standards compliance gaps that have been affecting local manufacturers.

Sectoral planning will be institutionalized through secretariats with defined mandates and time-bound deliverables to ensure policies translate into measurable economic growth.

These developments were discussed during an extensive meeting between Federal Minister for Commerce Jam Kamal Khan and a delegation of the Pakistan Chemical Manufacturers Association (PCMA), led by its Chairman, according to the press release.

The Minister emphasized that Pakistan’s economic challenges are largely linked to governance and implementation gaps rather than policy design alone.

 He highlighted the need for “house-in-order” reforms covering customs processes, regulatory enforcement, standards compliance, and institutional coordination.

Jam Kamal Khan also emphasized that sectoral councils must evolve beyond discussion forums into effective platforms for long-term economic planning aligned with the country’s five-year development framework.

The Minister reiterated the government’s focus on diversifying exports beyond textiles, identifying chemicals, pharmaceuticals, surgical goods, food processing, and value-added manufacturing as growth areas.

He proposed data-driven, sector-specific trade negotiations to improve trade balance outcomes, particularly in countries with large import volumes.

The Commerce Ministry plans to assess existing export facilitation schemes to evaluate their impact on revenue, industry-level benefits, and transparency, ensuring support for genuine exporters while addressing governance weaknesses.

The PCMA delegation highlighted challenges facing the sector, including rising energy costs, tariff rationalization, financing constraints, and regulatory inefficiencies.

Industry representatives also stressed the need for stronger quality standards and intellectual property enforcement to curb counterfeit products, improve investor confidence, and attract foreign collaboration.

They further urged that industrial growth should be evaluated not only through export figures but also by employment generation, tax base expansion, and domestic market development.

Jam Kamal Khan assured that the association’s recommendations would be reviewed and incorporated into ongoing policy deliberations where appropriate.

He reaffirmed the government’s commitment to a research-based, transparent, and growth-oriented industrial strategy.

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