Chemical industry contributes 21.2 percent to value added of Pakistan’s
manufacturing sector. It is capital-intensive and its share in employment is 8.9 percent.Pharmaceuticals, fertilizers, synthetic resins and petroleum refining and products constitutebulk of the sector’s value added. The significance of the chemical industry may be gauged from the fact that the size of the global chemical market is $1.8 trillion and the trade volume is US$ 600 billion and over the last two decades it has grown at a rate of 1.5 times the world GDP growth rate. The industry in the Asia Pacific region has grown faster than the global
chemical industry and adds $ 30 billion worth of output every year. As much as 45 percent of the total chemical products produced in the region are bulk organic chemicals, which also forms a major component in the export basket from the region. This region is fast emerging as a key player in global chemicals business and commands 30 percent share of global chemical market.

Petrochemical and chemical products constitute approximately 40 percent of total
imports of the country. Pakistan has no facilities to produce basic petrochemicals like Ethylene, Propylene, Butadiene, etc. and they are being imported in bulk
The total production of chemicals in Pakistan is around $ 3 billion but it can increase rapidly provided a petrochemical complex based around Naphtha and hydro-cracker is set up. This will provide raw materials for plastic detergents, dyes, paints, and varnishes and
pesticides. The major issues of the chemical sector include the non availability and the high cost of inputs and utilities, obsolete technology base, limited R&D & quality control,environmental problems and high cost of investment.