Pakistan’s petrochemical industry has long been regarded as a sleeping giant, with immense potential to contribute to economic growth, employment, and energy security. The country benefits from a large and growing population, rising industrial demand, and a strategic geographic location between the Middle East, Central Asia, and South Asia.

Despite these advantages, the sector has consistently underperformed, constrained by a combination of feedstock shortages, ageing infrastructure, weak policy frameworks, and limited downstream integration. Reviving this industry is, therefore, not only an economic necessity but also a strategic imperative for Pakistan’s broader industrial development and export competitiveness.

Petrochemicals are necessary for modern life. They form raw materials for plastics, synthetic fibres, fertilisers, construction materials, automotive components, electronics, pharmaceuticals, and agricultural inputs. Countries such as Saudi Arabia and Qatar have successfully leveraged their oil and gas reserves to develop robust petrochemical sectors that have transformed their economies.

Pakistan, while not as resource-rich, possesses enough refining capacity, gas infrastructure, and domestic market demand to establish a competitive petrochemical industry if the right policies and investments are implemented. Currently, the country remains heavily dependent on imported polymers such as polyethylene and polypropylene, as well as solvents and intermediates, which places pressure on the foreign exchange reserves and increases production costs for local manufacturers.

Although companies like Engro Polymer & Chemicals Ltd have contributed significantly, particularly in PVC production, the overall sector remains underdeveloped, compared with the regional competitors.

A major challenge for Pakistan’s petrochemical industry is feedstock security. Reliable and affordable supplies of natural gas, naphtha, or ethane are important for the operation of chemical plants. Frequent gas shortages and shifting government priorities have created uncertainty for industrial users.

When gas is diverted to domestic consumers or power generation, chemical plants face interruptions, which discourages both domestic and foreign investment. Without long-term feedstock agreements at competitive prices, investors are reluctant to commit the billions required to build new petrochemical complexes. A clear, stable national policy that balances the needs of all the stakeholders is, therefore, needed to attract investment and ensure consistent production.

Another significant barrier is outdated infrastructure. Many of Pakistan’s refineries and chemical plants were constructed decades ago and require modernisation to enhance efficiency, safety, and environmental performance.

Modern petrochemical facilities rely heavily on automation, advanced process control systems, predictive maintenance, and energy integration to reduce operational costs and carbon emissions. Upgrading domestic plants demands substantial capital and access to technical expertise, including exposure to global best practices in plant operation, risk management, and process optimisation.

Syed Muhammad Arif, a Chartered Professional Chemical Engineer, exemplifies the expertise needed to strengthen Pakistan’s petrochemical industry. With more than 16 years of experience in operations, project commissioning, safety management, and process optimisation, gained both internationally at Qatar Chemicals and locally at Engro Polymer & Chemicals, he shows how experienced professionals can help modernise plants, transfer knowledge, and apply global safety and operational standards.

Exposure to the world-class ethylene production facilities and advanced safety systems has enabled him to gain the technical knowledge required to manage complex chemical operations to global standards.

Such professionals play their role in knowledge transfer and the modernisation of domestic plants, as they bring experience in process hazard analysis, plant turnarounds, and adherence to the international safety and operational standards.

This combination of local and international experience demonstrates how Pakistani engineers can bridge gaps in technical capacity, operational reliability, and safety culture. Engineers with such exposure can mentor younger professionals, helping them adopt modern practices and digital tools for efficient plant operations.

Safety and environmental compliance are also key priorities for a competitive petrochemical sector. Global markets, particularly in Europe and Britain, demand strict adherence to environmental, social, and governance standards. For Pakistan to export higher-value chemical products, plants must comply with the international environmental and safety regulations.

Experienced professionals in Process Safety Management and structured safety leadership help align local operations with global standards, using risk assessments, incident investigations, and management systems to enhance safety, protect assets, and improve plant performance.

Limited downstream integration remains another significant obstacle. Pakistan produces some basic petrochemicals, but value addition is minimal. Instead of exporting raw materials or importing finished products, the country would benefit from integrated petrochemical clusters, where refineries, crackers, polymer units, and processing industries operate in close proximity.

This approach, successfully implemented in places such as Ras Laffan Industrial City in Qatar, reduces transportation costs, improves energy efficiency, and strengthens supply chains.

The government can facilitate such clusters by providing reliable infrastructure, transparent regulations, and public-private partnership models that attract investment while offering stable operational conditions.

Financing these projects is another concern. Petrochemical complexes require substantial capital investment, often amounting to several billion pounds. Local financial institutions in Pakistan have limited capacity to support such large-scale, long-term financing, making foreign direct investment and joint ventures essential.

Attracting international partners requires not only a strong domestic market but also political stability and predictable regulatory policies. Clear and consistent rules, long-term contracts, and stable tax regimes are necessary to instill investor confidence.

Human capital development is equally important. While Pakistan produces thousands of engineering graduates annually, practical industrial experience is often lacking. Collaboration between universities and industry is the need of the hour to ensure curricula reflect modern petrochemical processes, digital control systems, and sustainable practices.

Engineers like Syed Muhammad Arif, with expertise in distributed control systems such as Yokogawa and Honeywell, can mentor young engineers in these technologies, bridging the gap between academic knowledge and practical industrial skills.

Digitalisation and advanced process analytics also offer opportunities for improvement. Predictive maintenance, process simulation, and data-driven optimisation can increase output, reduce downtime, and improve operational reliability, even in existing plants. Energy transition trends add another layer of complexity. Although petrochemicals will remain indispensable, global pressure to reduce carbon emissions is increasing.

Pakistan’s new investments in the sector should incorporate energy efficiency measures, waste heat recovery, and, where feasible, carbon capture technologies. Cleaner production methods will not only ensure regulatory compliance in export markets but also enhance operational efficiency and long-term competitiveness.

However, pricing and policy distortions further complicate investment planning. Inconsistent gas tariffs, subsidies, and unpredictable energy pricing create uncertainty for industrial users. A transparent, market-based feedstock pricing mechanism and long-term supply agreements would reduce risks for investors and enable better financial planning. Stable policies are also needed to encourage both domestic and international companies to commit to the long-term development of the sector.

Reviving Pakistan’s petrochemical industry will require coordinated action from the government, industry, financial institutions, and academia. While large-scale investment, stable governance, and clear strategic policies are needed, the potential benefits are significant; reduced imports, improved foreign exchange reserves, high-skilled employment, and the growth of downstream manufacturing industries.

Pakistan already has the human capital to manage and operate world-class facilities. Experiences in plant operations, safety systems, project commissioning, and process optimisation exemplify the professional expertise that can drive industrial modernisation.

If Pakistan successfully combines professional expertise with strong policy support, modern infrastructure, and strategic international partnerships, it can develop a resilient and competitive petrochemical industry. This is not merely a matter of constructing factories; it involves building systems, capabilities, and standards aligned with the global best practices.

Over time, such an approach can transform the industry from a reliance on imports and fragmented operations to a fully integrated, high-performing, export-oriented sector. The journey will demand patience, vision, and consistent effort, but the foundational elements, industrial base, engineering talent, and strategic location already exist within the country.

Continued dependence on imports will perpetuate foreign exchange pressures and limit industrial growth, while strategic investment in the petrochemical value chain can unlock economic, technological, and environmental benefits. Ensuring feedstock security, upgrading ageing infrastructure, strengthening safety and environmental compliance, developing downstream integration, and skilled professionals are all crucial steps.

With vision, professionalism, and sustained commitment, Pakistan can awaken its petrochemical industry from its dormant state and position itself as a competitive player in the regional and global markets, transforming potential into tangible industrial and economic outcomes.

The writer is a seasoned journalist and a communications professional.

He can be reached at tariqkik@gmail.com