plastic industry

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PLASTIC INDUSTRY PLASTIC INDUSTRY Analysis Of Pakistani Industries Analysis Of Pakistani Industries Presented By: Presented By: Tabish Jawed Tabish Jawed Hassan Zaib Khan Hassan Zaib Khan Waseem Ali Manghi Waseem Ali Manghi Syed Muhammad Hassan Syed Muhammad Hassan Presented To: Presented To: Mr. Shahid Hameed Mr. Shahid Hameed

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Page 1: Plastic Industry

PLASTIC INDUSTRYPLASTIC INDUSTRY

Analysis Of Pakistani IndustriesAnalysis Of Pakistani Industries

Presented By:Presented By:

Tabish JawedTabish Jawed

Hassan Zaib KhanHassan Zaib Khan

Waseem Ali ManghiWaseem Ali Manghi

Syed Muhammad HassanSyed Muhammad Hassan

Presented To:Presented To:

Mr. Shahid HameedMr. Shahid Hameed

Page 2: Plastic Industry

AGENDAAGENDA

IntroductionIntroduction HistoryHistory Plastic Industry In PakistanPlastic Industry In Pakistan Structural CompositionStructural Composition Sectoral CompositionSectoral Composition Plastic ProcessingPlastic Processing Demand & Supply ProjectionDemand & Supply Projection Swot AnalysisSwot Analysis Issues Concerning The SectorIssues Concerning The Sector Suggestions /ConclusionSuggestions /Conclusion

Page 3: Plastic Industry
Page 4: Plastic Industry

PLASTICS PLASTICS

““Any of various complex organic Any of various complex organic compounds produced by compounds produced by polymerization, capable of polymerization, capable of being molded, extruded, cast being molded, extruded, cast into various shapes and films, into various shapes and films, or drawn into filaments and or drawn into filaments and then used as textiles fibers”.then used as textiles fibers”.

Page 5: Plastic Industry

Why Plastic is Popular?Why Plastic is Popular?

AttractiveAttractive HardHard Soft and RubberySoft and Rubbery Easy to cleanEasy to clean FlexibleFlexible Good insulator of heat or electricityGood insulator of heat or electricity Light weightLight weight HygienicHygienic Easy to shape and colorEasy to shape and color EconomicalEconomical Non-rusting Material Non-rusting Material

Page 6: Plastic Industry

TYPES OF PLASTICSTYPES OF PLASTICS

THERMOPLASTICSTHERMOPLASTICS

Plastics, which are capable of being Plastics, which are capable of being repeatedly softened by heat and hardened repeatedly softened by heat and hardened by cooling, are called Thermoplastics by cooling, are called Thermoplastics

THERMOSETTING PLASTICSTHERMOSETTING PLASTICS

These are plastics which when cured These are plastics which when cured change into a substantially infusible or change into a substantially infusible or insoluble productinsoluble product. .

Page 7: Plastic Industry

HISTORYHISTORY 19471947: Hand molding machines are reported to be operating : Hand molding machines are reported to be operating 19531953: Plastics resin is sold for Rs.3.05 per pound in local : Plastics resin is sold for Rs.3.05 per pound in local

markets. markets. 19631963: Average prices of plastics resin move up only 90 : Average prices of plastics resin move up only 90

Paisas in ten Paisas in ten years. Exports Promotion Bureau is created. years. Exports Promotion Bureau is created. 19731973: 120% increase is recorded in the prices of plastics : 120% increase is recorded in the prices of plastics

resins in 20 resins in 20 years. Plastics products worth 0.465 million years. Plastics products worth 0.465 million are exported for the are exported for the first time first time

19801980: Pakistan Plastics Manufacturers Association is formed. : Pakistan Plastics Manufacturers Association is formed. The The association is registered with the Ministry of association is registered with the Ministry of Commerce in the Commerce in the month of May. month of May.

19881988: Plastics Technology Centre (PTC) is established by : Plastics Technology Centre (PTC) is established by FCCCL FCCCL with the assistance of UNIDO at with the assistance of UNIDO at Korangi Industrial Area, Korangi Industrial Area, Karachi Karachi

19991999: Engro Asahi Chemical with an investment of US$80 : Engro Asahi Chemical with an investment of US$80 million million

set-up 100,000 tons PVC plant at Port QasiMset-up 100,000 tons PVC plant at Port QasiM 20042004: PPMA organizes second (local) exhibition in Lahore. : PPMA organizes second (local) exhibition in Lahore.

First First international plastics exhibition held in international plastics exhibition held in Karachi Karachi

Page 8: Plastic Industry

PLASTIC INDUSTRY IN PLASTIC INDUSTRY IN PAKISTANPAKISTAN

Plastic industry in pakistan is one of the oldest in the Plastic industry in pakistan is one of the oldest in the country and its existence can be traced out even in the country and its existence can be traced out even in the 19471947

Today plastics material constitutes as the fourth largest Today plastics material constitutes as the fourth largest item of imports.item of imports.

Global average growth rate of around 7.5 percent but the Global average growth rate of around 7.5 percent but the pakistan industry is growing at an annual average of 15%pakistan industry is growing at an annual average of 15%

The per capita plastic consumption in pakistan has lately The per capita plastic consumption in pakistan has lately risen to 2.7 kilograms risen to 2.7 kilograms

Plastic industry is growing at an annual rate of 2.2% Plastic industry is growing at an annual rate of 2.2%

Factor that hampered the development of local plastic Factor that hampered the development of local plastic industry was ban on import of brand new plastic industry was ban on import of brand new plastic machinesmachines

Page 9: Plastic Industry

PLASTIC INDUSTRY IN PLASTIC INDUSTRY IN PAKISTAN PAKISTAN (cont…)(cont…)

There are some 6,000 plastic manufacturers in the There are some 6,000 plastic manufacturers in the country country

600,000 people are directly and indirectly engaged 600,000 people are directly and indirectly engaged with this business. with this business.

Pakistan imports 70-80 percent raw material for Pakistan imports 70-80 percent raw material for plastic making from different countriesplastic making from different countries

The prices of raw material of plastic industry depend The prices of raw material of plastic industry depend on international scenario. During iraq war, the on international scenario. During iraq war, the prices shot up by 70 percent prices shot up by 70 percent

The recent penetration of cheap chinese products The recent penetration of cheap chinese products into pakistan has made the competitive situation in into pakistan has made the competitive situation in the local plastic industry very intensethe local plastic industry very intense

Page 10: Plastic Industry

STRUCTURAL COMPOSITIONSTRUCTURAL COMPOSITION

RAW MATERIALSRAW MATERIALS

FINISHED GOODSFINISHED GOODS

Page 11: Plastic Industry

RAW MATERIALSRAW MATERIALS

Polyethylene (PE)Polyethylene (PE)

Polypropylene (PP)Polypropylene (PP)

Polystyrene (PS)Polystyrene (PS)

Polyvinyl Chloride (PVC Polyvinyl Chloride (PVC

Page 12: Plastic Industry

RAW MATERIALS RAW MATERIALS (cont…)(cont…)

POLYETHYLENPOLYETHYLENEE

QUANTITYQUANTITY VALUE IN Rs.(000)VALUE IN Rs.(000)

1999-001999-00 7448674486 25482752548275

2000-012000-01 9430094300 30896613089661

2001-022001-02 126459126459 36659183665918

2002-032002-03 126674126674 44906034490603

2003-042003-04 154877154877 62341216234121

2004-052004-05 156419156419 55450095545009

POLYETHYLENE (PE) PE, the leading thermoplastic material, has

established its usage in packaging film, household articles, automotive and industrial parts. Now there is

no plant producing polyethylene.

Page 13: Plastic Industry

RAW MATERIALS RAW MATERIALS (cont…)(cont…)

POLYPROPYLENE (PP)POLYPROPYLENE (PP)PP is used in the form of woven bags, PP is used in the form of woven bags,

household articles, furniture and household articles, furniture and packaging film. There is no plant packaging film. There is no plant

producing polypropylene at present.producing polypropylene at present.

POLYPROPYLENEPOLYPROPYLENE QUANTITY (M. QUANTITY (M. Tons)Tons)

VALUE IN Rs.VALUE IN Rs.(000)(000)

1999-001999-00 6516065160 22026542202654

2000-012000-01 8569185691 23698402369840

2001-022001-02 3329433294 25563552556355

2002-032002-03 102457102457 32056233205623

2003-042003-04 109466109466 39562453956245

2004-052004-05 144051144051 47857274785727

Page 14: Plastic Industry

RAW MATERIALS RAW MATERIALS (cont…)(cont…)

POLYSTYRENE (PS)POLYSTYRENE (PS)PS is being consumed in electrical and PS is being consumed in electrical and

electronic parts, household articles, electronic parts, household articles, automotive parts and packing materialautomotive parts and packing material

YEARYEAR PRODUCTIONPRODUCTION IMPORTIMPORT CONSUMPTIONCONSUMPTION

1999-001999-00 1,4701,470 11,79811,798 13,26813,268

2000-012000-01 1,3021,302 16,38716,387 17,68917,689

2001-022001-02 1,0171,017 14,45214,452 15,46915,469

2002-032002-03 11,62711,627 18,93818,938 30,52430,524

2003-042003-04 16,39416,394 7,7567,756 23,39823,398

2004-052004-05 36,00036,000 N.AN.A 23,40023,400

Page 15: Plastic Industry

RAW MATERIALS RAW MATERIALS (cont…)(cont…)

POLYVINYL CHLORIDE (PVC)POLYVINYL CHLORIDE (PVC)PVC is an important material used for wide range of PVC is an important material used for wide range of applications. PVC is used for doors, windows, pipes & applications. PVC is used for doors, windows, pipes & fittings, profiles, food packaging, furniture, electronic fittings, profiles, food packaging, furniture, electronic

components, foot-wear and cablescomponents, foot-wear and cables

POLYVINYL POLYVINYL CHLORIDECHLORIDE

QUANTITYQUANTITY VALUE IN Rs.VALUE IN Rs.(000)(000)

1999-001999-00 4384843848 13381861338186

2000-012000-01 4786147861 15219521521952

2001-022001-02 6410364103 17797921779792

2002-032002-03 3160431604 11209671120967

2003-042003-04 1488414884 650554650554

2004-052004-05 1314513145 571637571637

Page 16: Plastic Industry

BREAKDOWN OF PLASTICS MATERIALBREAKDOWN OF PLASTICS MATERIALWITH GROWTHWITH GROWTH

PLASTICSPLASTICS END USE END USE INDUSTRIESINDUSTRIES

GROWTH GROWTH (%)(%)

Poly Vinyl Chloride Poly Vinyl Chloride (PVC)(PVC)

Pipes, Artificial Leather, Pipes, Artificial Leather, Cable Coating, Cable Coating,

Packaging, FootwearPackaging, Footwear

1010

Polyethylene (PE)Polyethylene (PE) Film for Packaging, Film for Packaging, Bottles and PipesBottles and Pipes

2727

Polypropylene (PP)Polypropylene (PP) Woven Bags, Auto Parts, Woven Bags, Auto Parts, Packaging, Pipes Packaging, Pipes

House ware & Medical House ware & Medical Applications & PipesApplications & Pipes

1717

Polystyrene (PS)Polystyrene (PS) House & Sanitary Wares, House & Sanitary Wares, Auto Parts, Electrical Auto Parts, Electrical

PartsParts

66

RAW MATERIALS RAW MATERIALS (cont…)(cont…)

Page 17: Plastic Industry
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FINISH GOODSFINISH GOODS PET bottles, Jars, CupsPET bottles, Jars, Cups Molded FurnitureMolded Furniture HDPE Sacks & Woven SacksHDPE Sacks & Woven Sacks Commode covers, Flushing Commode covers, Flushing

mechanisms,mechanisms, Household KitchenwareHousehold Kitchenware Water FilterWater Filter Automotive partsAutomotive parts Electronics partsElectronics parts Plastic SheetPlastic Sheet Forged, Machined & Heat Forged, Machined & Heat

Treated parts,Treated parts, Crockery items (Forks, Crockery items (Forks,

Crankshafts)Crankshafts) Telecommunication PartsTelecommunication Parts Fan partsFan parts Medical Instruments Medical Instruments

(Syringes. etc.)(Syringes. etc.) Resin & Allied Products.Resin & Allied Products. Pipes and fittingsPipes and fittings Plastic FilmsPlastic Films Waste Processed ProductsWaste Processed Products

YEARYEAR

QUANTITQUANTITYY

(Million (Million Tons)Tons)

VALUEVALUE(Million (Million

RS.)RS.)

1996-1996-9797 4,8734,873 238238

1997-1997-9898 12,32512,325 600600

1998-1998-9999 6,7806,780 443443

1999-1999-0000 11,03511,035 686686

2003-2003-0404 N.A.N.A. 33.433.4

2004-2004-0505 N.A.N.A. 111.5111.5

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SECTORAL COMPOSITIONSECTORAL COMPOSITION

PLASTICS UNITSPLASTICS UNITS

LOCAL RAW MATERIAL LOCAL RAW MATERIAL PRODUCERSPRODUCERS

Page 21: Plastic Industry

PLASTICS UNITSPLASTICS UNITS Presently there are 6000 processors in pakistanPresently there are 6000 processors in pakistan

Lahore and karachi are the main centers of Lahore and karachi are the main centers of plastics processing unitsplastics processing units

The organized sector is producing best quality The organized sector is producing best quality products for domestic, industrial and defense products for domestic, industrial and defense sectorssectors There are about 600 to 700 medium sized There are about 600 to 700 medium sized

plastics processing unitsplastics processing units

The un-organized sector has grown much more The un-organized sector has grown much more rapidly then the organized sectorrapidly then the organized sector Besides these units, there are over 5,300 small Besides these units, there are over 5,300 small

scale plastics processing units providing scale plastics processing units providing employment to about 600,000 people.employment to about 600,000 people.

Page 22: Plastic Industry

MANPOWER ENGAGED WITH PLASTIC INDUSTRY

360,000, 60%180,000, 30%

42,000, 7%

18,000, 3%

PUNJAB

SINDH

NWFP

BALOCHISTAN

Page 23: Plastic Industry

PROVINCE WICE PLASTIC UNITS

Punjab60%

Sindh30%

NWFP7%

Balochistan3%

Punjab

Sindh

NWFP

Balochistan

Page 24: Plastic Industry

CITY WISE PLASTICS UNITSCITY WISE PLASTICS UNITS

Page 25: Plastic Industry

LOCAL RAW MATERIAL LOCAL RAW MATERIAL PRODUCERSPRODUCERS

Currently there are four plants in Currently there are four plants in Pakistan producing international Pakistan producing international quality plastics raw materialquality plastics raw material Gatron Industries Gatron Industries Engro Asahi Polymers Engro Asahi Polymers Pak Petro ChemicalsPak Petro Chemicals Dyno Pakistan Ltd.Dyno Pakistan Ltd.

Page 26: Plastic Industry

LOCAL RAW MATERIAL LOCAL RAW MATERIAL PRODUCERS PRODUCERS (cont…)(cont…)

COMPANYCOMPANY PRODUCT PRODUCT CAPACITY CAPACITY (M.Tons)(M.Tons)

Gatron Gatron Industries Industries

PET MaterialPET Material 200,000 200,000

Engro Asahi Engro Asahi Polymers Polymers

PVCPVC 100,000 100,000

Pak Petro Pak Petro ChemicalsChemicals

HIPS & PSHIPS & PS 36,000 36,000

Dyno Pakistan Dyno Pakistan Ltd.Ltd.

Methanol Urea Methanol Urea Melamine Melamine

34,000 34,000

   TotalTotal

370,000370,000

Page 27: Plastic Industry

PAK PETRO CHEMICALSPAK PETRO CHEMICALS

Page 28: Plastic Industry

OTHER RAW MATERIAL PRODUCERSOTHER RAW MATERIAL PRODUCERSName of companyName of company LocationLocation Installed Installed

CapacityCapacityProd. CapacityProd. Capacity

Qaiser L. G. Qaiser L. G. LahoreLahore 30,00030,000 30,00030,000

Shafi Chemical Industry LtdShafi Chemical Industry Ltd LahoreLahore 17,50017,500 17,50017,500

Nimir Chemicals Pakistan Ltd.Nimir Chemicals Pakistan Ltd. LahoreLahore 15,00015,000 15,00015,000

A.T.S. Synthetic (Pvt.) Ltd.A.T.S. Synthetic (Pvt.) Ltd. LahoreLahore 14,04014,040 14,04014,040

Ravi ChemicalsRavi Chemicals LahoreLahore 5,0005,000 5,0005,000

Delta Industries (Pvt.)Ltd. Delta Industries (Pvt.)Ltd. LahoreLahore 2,4002,400 1,1001,100

BASF Pakistan Limited BASF Pakistan Limited KarachiKarachi 3,6003,600 1,5001,500

BASFABASFA LahoreLahore 2,4002,400 500500

Al-KhairAl-Khair KarachiKarachi 2,4002,400 500500

Polymer Industries Polymer Industries GujranwalaGujranwala 1,2001,200 380380

Indus Resin Ltd.Indus Resin Ltd. KarachiKarachi 1,2001,200 120120

Mirza Jee Mirza Jee MultanMultan 480480 4040

Nimir Resins Ltd. Nimir Resins Ltd. SheikhupuraSheikhupura 551551 228228

Berger Paints Pakistan Ltd. Berger Paints Pakistan Ltd. KarachiKarachi 266266 171171

Royal ResinRoyal Resin LahoreLahore 266266 171171

Complex ChemicalComplex Chemical HattarHattar 181181 7676

Premier ResinPremier Resin LahoreLahore 8585 3838

Shalimar Polymer Ind. Shalimar Polymer Ind. LahoreLahore 266266 133133

Page 29: Plastic Industry
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PLASTIC PROCESSINGPLASTIC PROCESSING

NO.NO.MOLDING MOLDING

PROCESSPROCESS PRODUCTPRODUCT

11Extrusion Extrusion

MoldingMolding

Pipe, Fiber, Film, Sheet & Pipe, Fiber, Film, Sheet & Thermoforming, Profile, Pipe, Thermoforming, Profile, Pipe, Wire & Cable Etc.Wire & Cable Etc.

22 Injection MoldingInjection MoldingBucket, Housing Of Office Bucket, Housing Of Office

AutomationAutomation

33 Blow MoldingBlow Molding Container, BottleContainer, Bottle

44 Vacuum FormingVacuum FormingPack case For Egg (Thin Film Pack case For Egg (Thin Film

Product)Product)

55 Pressure FormingPressure Forming Suitcase (Thick Sheet Product)Suitcase (Thick Sheet Product)

66 Rotation MoldingRotation Molding Bottle, DollBottle, Doll

Page 31: Plastic Industry

DEMAND & SUPPLY DEMAND & SUPPLY PROJECTIONPROJECTION

DEMAND & SUPPLY RAW MATERIALDEMAND & SUPPLY RAW MATERIAL

DEMAND ESTIMATES FOR MACHINERYDEMAND ESTIMATES FOR MACHINERY

DEMAND ESTIMATES FOR ENGINEERING DEMAND ESTIMATES FOR ENGINEERING THERMOPLASTICSTHERMOPLASTICS

Page 32: Plastic Industry
Page 33: Plastic Industry

DEMAND & SUPPLY RAW MATERIALDEMAND & SUPPLY RAW MATERIAL(Metric Tons)(Metric Tons)

PRODUCTSPRODUCTSCONSUMPTIOCONSUMPTIO

NNESTIMATED ESTIMATED

DEMANDDEMAND

   2001 – 20022001 – 20022004 - 2004 -

200520052009 - 2009 -

20102010

Polyethylene (PE)Polyethylene (PE) 157500157500 235000235000 340000340000

Poly Propylene (PP)Poly Propylene (PP) 144000144000 150000150000 205000205000

Polyvinyl Chloride (PVC)Polyvinyl Chloride (PVC) 7800078000 9500095000 120000120000

Polystyrene (PS)Polystyrene (PS) 2340023400 3500035000 4500045000

TotalTotal 402900402900 515000515000 710000710000

Page 34: Plastic Industry

DEMAND ESTIMATES FOR DEMAND ESTIMATES FOR MACHINERYMACHINERY

Injection MoldingInjection Molding 250-500250-500

Blow MoldingBlow Molding 350-500350-500

ExtrusionExtrusion 10001000

Page 35: Plastic Industry

DEMAND ESTIMATES FOR DEMAND ESTIMATES FOR ENGINEERING ENGINEERING

THERMOPLASTICSTHERMOPLASTICSYEAR YEAR 20042004

ABSABS 1100011000

PolyamidePolyamide 700700

PBT Molding MaterialPBT Molding Material 200200

PolycarbonatePolycarbonate 60006000

PolydactylPolydactyl 10001000

Page 36: Plastic Industry

SWOT ANALYSISSWOT ANALYSIS

STRENGTHSSTRENGTHS

Easy availability of cheap laborEasy availability of cheap labor

Increasing domestic market having demands from Increasing domestic market having demands from both low-end and high-end segments.both low-end and high-end segments.

Several Large Units are also present.Several Large Units are also present.

Industrial Zones facilities are available.Industrial Zones facilities are available.

Location is a competitive strength.Location is a competitive strength.

Acceptable as international Avenue for Exhibitions Acceptable as international Avenue for Exhibitions / Seminar / Foreign Buyers visit./ Seminar / Foreign Buyers visit.

Sound Cash flowsSound Cash flows

Page 37: Plastic Industry

SWOT ANALYSIS SWOT ANALYSIS (cont…)(cont…)

WEAKNESSESWEAKNESSES The industry is largely unorganized and scattered.The industry is largely unorganized and scattered.

Professional management is not perceptible in the cluster.Professional management is not perceptible in the cluster.

The manufacturers are dependent on imported raw The manufacturers are dependent on imported raw material from outside.material from outside.

Lack of Research & Development efforts.Lack of Research & Development efforts.

Lack of vision / Planning.Lack of vision / Planning.

Traditional designs and no innovations.Traditional designs and no innovations.

Not getting benefits from support institutions.Not getting benefits from support institutions.

Nominal Export.Nominal Export.

Weak AssociationWeak Association..

Page 38: Plastic Industry

SWOT ANALYSIS SWOT ANALYSIS (cont…)(cont…)

OPPORTUNITIESOPPORTUNITIES

Pakistan is emerging as a major consumer market Pakistan is emerging as a major consumer market and international demand is also on the rise for and international demand is also on the rise for plastics.plastics.

Globalization and free trade.Globalization and free trade.

Strong National Economic indicators working for Strong National Economic indicators working for benefit of Industry.benefit of Industry.

Linkages with BDS & Support service providers.Linkages with BDS & Support service providers.

Product MarketingProduct Marketing

New and innovative products New and innovative products

Page 39: Plastic Industry

SWOT ANALYSIS SWOT ANALYSIS (cont…)(cont…)

THREATSTHREATS

Globalization and free trade.Globalization and free trade.

High custom duties on Raw MaterialHigh custom duties on Raw Material

Local Market Penetration by regional Local Market Penetration by regional competitors.competitors.

High Quality Standards.High Quality Standards.

Page 40: Plastic Industry
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ISSUES CONCERNING THE ISSUES CONCERNING THE SECTORSECTOR

DUTIES & TAXESDUTIES & TAXES

ENVIRONMENTAL HAZARDSENVIRONMENTAL HAZARDS

PROBLEMSPROBLEMS

Page 42: Plastic Industry

DUTIES & TAXESDUTIES & TAXES Plastics sector remains one of the major contributorsPlastics sector remains one of the major contributors

Import duties have been gradually reduced from 110 Import duties have been gradually reduced from 110 percent to 10 percent on major plastics materialspercent to 10 percent on major plastics materials

Adjustable sales tax on manufactured plastics goods Adjustable sales tax on manufactured plastics goods is 15 percent is 15 percent

To calculate total duty To calculate total duty

A factor of 64 percent is used for PP/PVC and 50 A factor of 64 percent is used for PP/PVC and 50 percent for PEpercent for PE

Six percent income tax is not refundable to traders Six percent income tax is not refundable to traders

Sales tax on manufactured plastics goods is 15 Sales tax on manufactured plastics goods is 15 percent percent

Page 43: Plastic Industry

DUTIES & TAXES DUTIES & TAXES (cont…)(cont…)

DUTIES & TAXESDUTIES & TAXES %%

Custom Duty (All Plastics)Custom Duty (All Plastics) 5%5%

PolyethylenePolyethylene 5%5%

High Impact PolystyreneHigh Impact Polystyrene 5%5%

Pet MaterialPet Material 10%10%

Sales TaxSales Tax 15%15%

Income Tax on ImportsIncome Tax on Imports 1%1%

Page 44: Plastic Industry

ENVIRONMENTAL HAZARDSENVIRONMENTAL HAZARDS Plastic bags are an environmental hazard and their Plastic bags are an environmental hazard and their

production and use need to be disallowed in the country.production and use need to be disallowed in the country.

Used plastic bags are found in abundance in the streets Used plastic bags are found in abundance in the streets and are responsible for clogging drains and sewerage and are responsible for clogging drains and sewerage lines.lines.

In the rural areas, these bags decrease the productivity of In the rural areas, these bags decrease the productivity of the arable land because they do not rot or turn into the arable land because they do not rot or turn into compost. The most dangerous are the black bags, made of compost. The most dangerous are the black bags, made of recycled plastic which increases their toxic content.recycled plastic which increases their toxic content.

Plastic's non-biodegradability poses serious environmental Plastic's non-biodegradability poses serious environmental and health problems. In addition, the additives used in and health problems. In addition, the additives used in processing plastics results in the presence of substances processing plastics results in the presence of substances that are a serious health hazard.that are a serious health hazard.

Burning the waste releases dioxin - a class of 75 chemicals Burning the waste releases dioxin - a class of 75 chemicals - which is carcinogenic and causes birth defects and other - which is carcinogenic and causes birth defects and other serious ailments like cancer.serious ailments like cancer.

Page 45: Plastic Industry

PROBLEMSPROBLEMS

Sales Tax for the organized sector is 15 percent, Sales Tax for the organized sector is 15 percent, whereas the unregistered buyers can get any amount of whereas the unregistered buyers can get any amount of the Plastics materials by paying 16.5 percent sales tax.the Plastics materials by paying 16.5 percent sales tax.

Export Promotion Bureau needs to enhance its Export Promotion Bureau needs to enhance its cooperation with the manufacturers in international cooperation with the manufacturers in international exhibitions.exhibitions.

Lack of information on potential export markets is an Lack of information on potential export markets is an impediment to export growth.impediment to export growth.

Interrupted power supply is not only affecting Interrupted power supply is not only affecting production but also damaging the expensive machines.production but also damaging the expensive machines.

Incentive for deletion is limited to a few components.Incentive for deletion is limited to a few components.

Lack of adequate training institutes.Lack of adequate training institutes.

Page 46: Plastic Industry

PROBLEMS PROBLEMS (cont…)(cont…)

PSI is not playing its due role for better quality PSI is not playing its due role for better quality control.control.

There are no export ware houses particularly for There are no export ware houses particularly for capturing South African market.capturing South African market.

Lack of financial assistance.Lack of financial assistance.

Sales tax on import of moulds is not adjustable Sales tax on import of moulds is not adjustable against output tax.against output tax.

Tariff on High Impact Polystyrene (HIPS) has Tariff on High Impact Polystyrene (HIPS) has been reduced to 10 percent from 25 percent that been reduced to 10 percent from 25 percent that is hurting the local industry.is hurting the local industry.

Intellectual property and copyright laws are not Intellectual property and copyright laws are not strictly enforcedstrictly enforced

Page 47: Plastic Industry
Page 48: Plastic Industry

SUGGESTIONSSUGGESTIONS

Creation of a plastics desk in the Export Creation of a plastics desk in the Export Promotion Bureau (EPB).Promotion Bureau (EPB).

Establishment of plastics website providing Establishment of plastics website providing information on imports, exports, international information on imports, exports, international associations, plastics processors in Pakistan.associations, plastics processors in Pakistan.

Export ware-houses in target markets.Export ware-houses in target markets.

Holding national and international exhibitions.Holding national and international exhibitions.

EPB should ensure participation of genuine EPB should ensure participation of genuine exporters.exporters.

Providing more realistic export rebate for PP Providing more realistic export rebate for PP woven sacks and other items.woven sacks and other items.

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Any question…???Any question…???