PVC exports could bring in $300m for Pakistan

May 31, 2023 (MLN): The downstream PVC industry can fully utilize its excess capacity and help in earning $300 million in valuable foreign exchange by standardizing and improving the quality of finished products, said Muhammad Idrees, Chief Commercial Officer at Engro Polymer & Chemicals Limited (PSX: EPCL).

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 – thinkPVC, EPCL is actively promoting various standardized, high-quality PVC products.

At a media briefing, Mahmood Siddiqui, Vice President manufacturing of the Company, highlighted that, “Since 2015, the Company has invested over $188m 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 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 $48m to Turkiye and Middle Eastern markets, while import substitution of around $300m contributed significantly toward solving Pakistan’s balance of payments situation,”

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.

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