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Pakistan has a well-organized system for imports and exports of chemical materials which are then converted into more
than 70,000various products, for industry as well as the consumer goods that people depend on in their daily life.
Economically the market of chemicals is divided into four main categories:
Basic Chemicals: which are the commodity materials including flexible material, Polymers, Petrochemicals and other
derivatives and inorganic chemicals which makes.10 35-37% of the chemical market.
Life Sciences Include differentiated chemical and biological substances, pharmaceuticals, health products, and crop
protection chemicals makes 30% of the chemical market.
Specialty Chemicals These are high value-added chemicals with diverse end-product market. Products include
electronic chemicals, industrial gases, adhesives, sealants and catalysts. Specialty Chemicals are sometimes referred to as
“fine chemicals” make 11 20-25% of the chemical market.
Consumer Products include soap, detergents, and cosmetics are only 10% of the chemical market.
PESTLE ANALYSIS
Growth Rate
Govt Type & Policy Inflation
Funding, Grant & Initiatives Labor Cost
Infrastructure Business Cycle
Tax Policy Energy Cost
Regulation
Services
Education
Culture Norms
Income Distribution
Population
Lifestyle
Fashion Emerging Technology
Culture Web information
Communication
Regional Law Weather green & Ethical issues
Law Enforcement Pollution, waste, recycling
Court System Resource Management
Employment Law Workforce Health
Regulation Climate Change
PORTER’S FIVE FORCES
Threat of New Entrants Bargaining Power of Suppliers
Low and Will Remain Low Moderate and Will Remain Moderate
Government regulations and patents Chemical industry relies on supplies from a few
Significant capital requirements large corporations (such as those in
Incumbents have superior efficiency and quality in petrochemicals industry)
production that may be difficult to imitate Chemical producers have limited substitutes for
Intense R&D and human capital requirements inputs
Most suppliers are not dependent on their sales
Industry Rivalry to chemical manufacturers
High and Increasing
Large number of competitors all competing for market share.
In order to enhance the chemical industry Pakistan must adopt the policy of “self-reliance”. Instead of relying on
foreign designs and engineering it must improve its own production and ensure high quality of chemical products.
Pakistan must work towards integrated approach. It must bring four worlds of a society together which are traders,
universities, research and development and production partners. This will bring innovation and must utilize its youth
which has fresh minds and great ideas to enhance the chemical industry resulting in qualitative and quantitative
perfection in the chemical products.
Pakistan is capable of producing high technological products all it needs is a little bit of effort in improvement of
administrative capabilities and induction of new technology and support from government to put things in order.
Submitted BY:
Fazal Rehman
Syed Hamza
Submitted To:
Sheikh Salman CH.Abdullah
Sufyaan Khan