KARACHI: Reliance Petrochem Industries has secured a $145 million export order from Europe for petrochemicals made in Pakistan and already dispatched the first shipment.
“First time in history ‘Made in Pakistan’ petrochemicals were launched in Barcelona Spain. We made this first export by bulk ship from Pakistan due to Prime Minister Imran Khan’s support and assistance by Custom authorities,” Jai Kumar at Reliance Petrochem said.
He informed the bulk production of petrochemicals was underway at Reliance Petrochem using imported and indigenous raw material.
Kumar informed it was the country’s first export to Europe adding that their product was already being exported to UAE, Oman and other countries.
Kumar informed Pakistan was importing these chemicals (white oil and textile oil) spending $150 million a year and since the Reliance started production of these goods, its import was reduced to only $3.4 million.
He said India was the big exporter of these chemicals to Europe and Indian lobby was quite strong there, and they resisted Pakistan’s exports. Indians created an issue regarding the specifications of the Pakistani product. “However, the issue was resolved in 45 days as we achieved AST standardization.”
Kumar informed that Reliance’s production and export of white oil and textile oil would result ina saving of $300 million every year to the country.
Chemical is the 4th largest sector in international trade and contributes 7% to the global GDP.
The Reliance Petrochem industries Private limited (RPIL) Karachi is Pakistan’s pioneer producer and exporter of white textile oils and industrial petrochemicals in the country and importing basic inputs from Lu-beref-Saudi Aramco Saudi Arabia and Abu Dhabi National oil Company (ADNOC) UAE.
The RPIL Pakistan invested in petrochemicals and provided import substitution and good export potential. The company catered 95% of the country’s total requirement for white textile oils and petrochemicals by utilising indigenous local and imported raw materials and ensured foreign exchange savings through import substitutions and exports.
The company entered in second phase and signed first contract of $155 million for the introduction of Pakistan origin white textile oils and petrochemicals in Europe and USA in January 2021 and shipped first consignment for Barcelona by bulk vessel in February 2021 and “Made in Pakistan” first consignment of Reliance white textile oils and petrochemicals were launched in Barcelona Spain on 25th May, 2021 and now RPIL is in the process of launching in California USA in July 2021 with the targets of exports of $215 million in 2022.
Prime Minister Imran Khan said on Sunday that Pakistan will continue to achieve economic growth in the days to come as he termed the process gradual and one that would take time.
“No one thought that we would achieve the growth rate of nearly 4 per cent. In fact, according to several independent experts, we may even surpass this growth rate,” he maintained.
PM Imran further said that the incumbent government faced unprecedented issues and challenges.
Analysts said Imran Khan led PTI had a tough situation to handle when it came into power as the successive previous governments had ruined the economy and the country was engulfed in a debt trap.
Previous governments secured loans on higher rates and over-burdened the country’s resources. And, due to these faulty policies of previous governments, PTI was forced to take loans to retire the interest payments.
The furnace oil power generation projects in past on lucrative guaranteed returns is the main cause of ever rising circular debt that has adversely impacted the entire electricity chain and the end consumers have to bear the brunt.
Similarly, the guaranteed capacity payments agreed with the LNG terminals and expensive LNG supply agreements aggravated the country’s economic woes.
Nonetheless, due to efficient policies of Imran Khan led government, the things are now moving in the right direction as country’s exports are rising, remittances are increasing and exports of unconventional products have begun.
According to independent economists, the country under Imran Khan was progressing fast and achieved around 4.0 percent growth in the current financial year despite the widespread pandemic.