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PAKISTAN
PRESENTING BY:
MUHAMMAD TALHA AHMED (SP06-BB-0017) 1
MUHAMMAD OZAIR AMIN (SP06-BB-0061)
PLASTIC INDUSTRY IS A
MOTHER OF ALL OTHER
INDUSTRIES.
2
AGENDA
• Definition Of Plastic • Duties & Taxes
• Introduction • Export Potential
• History • Recycling Scrap
• Global Overview
• End Users
• Industry Overview
• • Interest Group
Types Of Plastics
• Raw Materials • Support Service Institution
• Plastic Processing • Environmental Hazards
• Consumption Of Plastics • SWOT Analysis
• Plastics Units • Problems
• Suggestion
3
DEFINITION OF PLASTIC
• A plastic is a type of synthetic or man-made polymer; similar in many
ways to natural resins found in trees and other plants.
5
HISTORY
• 1953 - First plastics and polymer research center created with the
establishment of Pakistan Council of Scientific and Industrial Research
(PCSIR) in Karachi. Plastics resin is sold for Rs.3.05 per pound in local
markets.
• 1963 - Average prices of plastics resin move up only 90 Paisas in ten years.
Exports Promotion Bureau is created.
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HISTORY (CONT..)
• 1973 - 120% increase is recorded in the prices of plastics resins in 20
years. Plastics products worth 0.465 million are exported for the first
time.
• 1982- Poly Industries sets up a cast acrylic and polystyrene sheet plant at
Hub, Lasbella, some 35 km west of Karachi.
• The South East Asian countries have registered fastest growth of 15 per cent
and are expected to continue growing at much higher rate in future.
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PER CAPITA CONSUMPTION
OF PLASTICS
COUNTRY UNIT AVERAGE
World Kg. 17
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INDUSTRY OVERVIEW
• The Pakistan Plastic industry comprises of an up-stream organized
segment having 7 units.
• Its contribution to the gross domestic product (GDP) was 1.69 per cent.
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13
TYPES OF PLASTICS
• There are two types of plastic produces in Pakistan.
1. Thermoplastics
2. Thermosetting Plastics
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THERMOPLASTICS
• Plastics, which are capable of being repeatedly softened by heat and
hardened by cooling, are called Thermoplastics.
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THERMOSETTING PLASTICS
• These are plastics which when cured change into a substantially infusible
or insoluble product.
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RAW MATERIALS
• Polyethylene (PE)
• Polypropylene (PP)
• Polystyrene (PS)
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POLYETHYLENE (PE)
• PE, the leading thermoplastic material, has established its usage in
packaging film, household articles, automotive and industrial parts.
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POLYPROPYLENE (PP)
• PP is used in the form of woven bags, household articles, furniture and
packaging film.
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POLYSTYRENE (PS)
• PS is being consumed in electrical and electronic parts, household
articles, automotive parts and packing material.
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PRODUCTION, IMPORT & CONSUMPTION
OF POLYSTYRENE (PS)
(MILLION TONS)
YEAR PRODUCTI IMPORT CONSUMPT
ON ION
1997-98 1,470 11,798 13,268
1998-99 1,302 16,387 17,689
1999-00 1,017 14,452 15,469
2000-01 11,627 18,938 30,524
2001-02 16,394 7,756 23,398
2004-05 36,000 N.A 23,400
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POLYVINYL CHLORIDE (PVC)
• PVC is used for doors, windows, pipes & fittings, profiles, food
packaging, furniture, electronic components, foot-wear and cables.
22
PRODUCTION,EXPORT & IMPORT OF
POLYVINYL CHLORIDE (PVC)
(MILLION TONS PER YEAR)
YEAR PRODUCTI EXPORT IMPORT
ON
2000 65,000 25,512 34,602
2001 68,600 12,900 19,268
2002 83,600 16,407 13,144
2004 100,000 30,000 13,150
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DEMAND & SUPPLY PROJECTION
(000 MILLION TONS)
PRODUCTS CONSUMPTION ESTIMATED DEMAND
24
LOCAL PRODUCTION
RAW MATERIALS QTY/MT
PVC 83,600
Polystyrene 16,394
Unsaturated Polyester Resin 4,140
(UPR)
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MAJOR PLASTICS RAW MATERIAL
MANUFACTURERS
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BREAKDOWN OF PLASTICS
MATERIAL WITH GROWTH
Plastics End Use Industries %
Growth
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PLASTIC PROCESSING
• There are several different processing methods used to make plastic products.
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CONSUMPTION OF PLASTIC
DESCRIPTION CONSUMPTION (M.T)
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PLASTIC UNITS
PROVINCE WICE PLASTIC UNITS
Balochistan
3%
NWFP
7%
Punjab
Sindh Sindh
30% NWFP
Punjab
60% Balochistan
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CITY WISE PLASTIC UNITS
45% 40%
40%
35%
30% 25%
25%
Series1
20%
15% 12%
10% 7% 8%
4% 3% 3% 3%
5%
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MANPOWER ENGAGED WITH
PLASTIC UNITS
MANPOWER ENGAGED WITH PLASTIC
INDUSTRY
18,000, 3%
42,000, 7%
PUNJAB
SINDH
180,000, 30%
360,000, 60% NWFP
BALOCHISTAN
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DUTIES & TAXES
• Plastics sector remains one of the major contributors in terms of the
amount of duty and taxes paid to the Government.
• During the last two decades, import duties have been gradually reduced
from 105 percent to 10 percent on major plastics materials.
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DUTIES & TAXES
DUTIES & TAXES %
Polyethylene 5%
34
EXPORT POTENTIAL
• The potential of export in two sectors.
1. Plastic Materials
2. Finished Goods
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A. PLASTIC MATERIALS
• PVC: Pakistan has become a plastics material exporting country.
• In the year 2000, export of PVC has been 12,000 m. tons worth $ 8
million and the unit was expecting to increase export to 30,000 m. tons.
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A. PLASTIC MATERIALS (CONT)
• PS: Polystyrene is being produced by Pak Petrochemical Industry.
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B. FINISHED GOODS
YEAR QUANTITY VALUE
(MILLION TONS) (MILLION RS.)
1996-97 4,873 238
1997-98 12,325 600
1998-99 6,780 443
1999-00 11,035 686
2003-04 N.A. 33.4*
2004-05 N.A. 111.5*
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RECYCLING / SCRAP
• Plastics scrap recycling has developed into an industry in Pakistan.
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PROCESS OF RECYCLING
• There are three process of recycling.
1. Collection Of Scrap
2. Process Stages
3. Applications
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PROCESS 1
COLLECTION OF SCRAP
• Household waste of broken unusable Plastics items.
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PROCESS 2
PROCESS STAGES
• Collection of scrap.
• Washing.
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PROCESS 3
APPLICATIONS
• The recycled material is used for manufacturing of low cost and inferior
quality products such as:
• Sandals / Chappals
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END USERS
• The end-users of various categories of plastics processed goods are.
A. Construction
B. Consumer Goods
C. Medical Products
D. Automotive
E. Electronics
F. Other Appliances
G. Packaging
H. PP Woven Sacks
I. Furniture & Fixture
J. Paints, Paper & Textile
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END USERS
45
END USERS
46
INTEREST GROUPS
• There are two groups which are taking keen interest in Plastic
Industry.
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1. PAKISTAN PLASTIC
MANUFACTURERS ASSOCIATION
• The PPMA was established to safeguard the interests of Plastic
Manufacturers in Pakistan in 1980s.
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2. LAHORE CHAMBER OF
COMMERCE & INDUSTRY
• Lahore Chamber is a premium institution providing different kinds of
services to Plastic Industry.
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SUPPORT SERVICE
INSTITUTION
• There are two support service institution.
1. Financial Institution
2. Technical Institution
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1. FINANCIAL INSTITUTION
• Commercial banks and specialized Financial Institutes (SME Bank,
PICIC, etc.) are individually linked to the industry.
• The demand of the cluster has been on the increase for expansion and the
finances are mostly required for working capital needs, longer term
supply contracts and machinery leasing.
• The Loan Repayment history of the cluster on the whole has been
remarked as excellent.
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2. TECHNICAL INSTITUTION
• Technical institution are also divided into two categories.
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A. TECHNICAL EDUCATION &
VOCATIONAL TRAINING AUTHORITY
• The Technical Education and Vocational Training Authority (TEVTA) is
a significant endeavor of the Government of Punjab, which focuses on the
development of human resource in terms of skill up gradation for men
and women.
• They also acquire skills whereby they can also set up their own small
industrial or service establishments.
• TEVTA has also ensured liaison with industry at all levels in terms of the
technical training as well ensuring relevant curriculum to suit industrial
needs.
• Presently TEVTA and plastic Industry are not properly associated and the
courses offered by the institute are outdated and requires updating the
curriculum.
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B. PLASTIC INJECTION MOLD
TECHNOLOGY DEVELOPMENT PROJECT
• Government of Japan and Government of Pakistan joined hands to
support Local Plastic industry and started this project.
• In the first phase the staff members were trained by Japanese experts in
the injection molding technology.
• In the second phase the market demands were collected to formulate the
services of the center.
• This center received a lot of demand for technical trainings and mold
designing from the Lahore plastic products manufacturers.
55
ENVIRONMENTAL HAZARDS
• Plastic bags are an environmental hazard and their production and use
need to be disallowed in the country.
• Used plastic bags are found in abundance in the streets and are
responsible for clogging drains and sewerage lines.
• In the rural areas, these bags decrease the productivity of the arable land
because they do not rot or turn into compost. The most dangerous are
the black bags, made of recycled plastic which increases their toxic
content.
56
ENVIRONMENTAL HAZARDS
(CONT)
• Plastic's non-biodegradability poses serious environmental and health
problems. In addition, the additives used in processing plastics results in
the presence of substances that are a serious health hazard.
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SWOT ANALYSIS
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STRENGTHS WEAKNESSES
•Easy availability of cheap labor •The industry is largely unorganized
•Increasing domestic market having and scattered.
demands from both low-end and high- • Professional management is not
end segments. perceptible in the cluster.
•Several Large Units are also present. •The manufacturers are dependent on
•Industrial Zones facilities are imported raw material from outside.
available. •Lack of Research & Development
•Location is a competitive strength. efforts.
•Acceptable as international Avenue •Lack of vision / Planning.
for Exhibitions / Seminar / Foreign •Traditional designs and no
Buyers visit. innovations.
•Sound Cash flows •Not getting benefits from support
institutions.
•Nominal Export.
•Weak Association.
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OPPORTUNITIES THREATS
•Pakistan is emerging as a major •Globalization and free trade.
consumer market and international •High custom duties on Raw Material
demand is also on the rise for plastics. •Local Market Penetration by regional
•Globalization and free trade. competitors.
•Strong National Economic indicators •High Quality Standards.
working for benefit of Industry.
• Linkages with BDS & Support
service providers.
• Product Marketing
• New and innovative products.
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PROBLEMS
• Sales Tax for the organized sector is 15 percent, whereas the unregistered
buyers can get any amount of the Plastics materials by paying 16.5
percent sales tax.
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PROBLEMS (CONT)
• Incentive for deletion is limited to a few components.
• PSI is not playing its due role for better quality control.
• There are no export ware houses particularly for capturing South African
market.
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SUGGESTIONS
• Creation of a plastics desk in the Export Promotion Bureau (EPB).
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THANK YOU!!
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