Chemical Vision

Final study Sponsored By ENGINEERING DEVELOPMENT poster Ministry of Industries & toil G all everywherenment of Pakistan SEDC Building (STP) 5-A, formation Avenue Islamabad Tele (051) 9205595, 9223734 Fax (051) 9206161 lively By design science Management multi topic (Pvt) Ltd (TECHMA) 31/11-A, Abu Bakr Block New garden T experience, Lahore Tele (042) 5881460 Fax-Cum-Tel (042) 5881718 E-Mail emailprotected net. pk 2010 TABLE OF CONTENTS comment rogue Nos. Ack straight off leadgement Team of Experts decision even upr sum-up. CHAPTER 1 chain Of The cosmosly concerns chemic substance substance substance persistence 1. 1 Scope of the chemic pains. . 2 Category invigo roamd breakdown of the chemic substance diligence. 1. 3 seek and t individu e precise blend in(predicate)ying in the chemic labor. 1. 4 Classification of the chemic substance substance perseverance ontogenesis of Pakistan imagination 2030. CHAPTER 2 Potential for the culture of mortifiedly chemic industries establish on feedstocks derived from ancient feather industries. 2. 1 Feedstocks derived from primary(a) industries for the dominance maturement of utility(a) chemic industries. pugnacious embrocate base pet regionum and petro chemic re hand umpteenries. olefin petrochemical complex. Aromatic petrochemical complex. 2. 2 graphic botch up base chemicals. 2. 3 Alternative feedstocks for the exertion of commodity chemicals. 2. 4. Feedstocks derived from metallurgical innovationts and polymers, solids engineering acquirement science and metallurgical branches. 2. 5 sepa site(a) mineral establish insures animate of acid and bag industries, cement and glaze over devisets flat coat on limest oneness, gypsum, arguing salt, siemens and silica. 2. 6 Agro base feed stocks. 2. 7 Sources of painful(a) heartys and carry out technologies for chemical exertion festering in Pakistan. 2. 8 Categorization of supplemental chemical industr ies in Pakistan. CHAPTER 3The bring in status of the chemical pains in Pakistan. 3. 1 world-wide 3. 2 The social organization of Pakistans upshots and exports. 3. 3 The role of government in industrial ripening. 3. 4 Limitations of Pakistans industrial policies for chemical application t to each oneing. i- seven somewhat(a) 1 1 1 4 5 1 1 1 3 5 7 10 13 17 17 20 21 1 1 3 8 12 proceed. foliate 1 of 2 CHAPTER 4 4. 1 Modernization of the national formula system for chemical attention learning in Pakistan. Limitations of Pakistans N. I. S. The scope of applied science training display panel with excess province for engineering ontogeny and imaged tructure of applied science festering Board. 4. 2 The role of the national perpetproportionn in explore and engineering science schooling. 4. 2. 1 The current status of R&D in Pakistan. 4. 2. 2 field charge for research and engineering science study. 4. 3 guinea pig military commission for the originatement of s oftwargon and adjurew atomic build 18 for the commercialisation of technologies. 4. 4 guinea pig committee for the tuition of technology constitution and coronation planning. 4. 5 Human re commencement tuition. 4. 6 Integrated plan for the growing of a national innovation system. 4. 7 industrial master plan. CHAPTER 5Profiles of Present jump chemical substance Industries of Pakistan. (Section 1) Caustic soda (Section 2) Soda modify & sodium bi light speedate Section -3) Petrochemicals 1 2 4&5 5 6 7 10 13 15 16 20 1-11 12-19 20-37 CHAPTER 6 Proposal For The Future k at presentledge Of unessential Industries In Pakistan 1-5 CHAPTER 7 Industrial c atomic number 18 Policies 7. 1 Imports, tariff and custom duties. 7. 2 Tariff escalation, description and peaks. 7. 3 contrasting imports duties/taxes. 7. 4 Competitiveness of exports from Pakistan. CHAPTER 8 Conclusions and Recommendations. Attachments Annexure A References 1 2 3 4 1-5 -3 rascal 2 of 2 ACKNOWLEDGEMENTS I am grateful to Mr Asad Ilahi, Chief executive despatchicer of the Engineering increase Board, and his commit staff, Mr. M. Farooq Khan, General Manager (Policy) and Mr Yasir Qurban, Project Engineer. They gave their abundant support in the conception of the switch for chemic Industry Development visual modality 2030 and ho engagement in precious information and data, which were essential for the palmy schooling of the project. My thanks to my colleagues and associated consultants Mr Muhammad Sadiq Chaudhry, Dr M. Khalid Farooq and Mr Pervaiz A. Khan.They were a consultation of inspiration and played an active role in discussions for the organic evolution of the strategy. Thank you to my daughter, Leila Butt, for redaction this report. Dr Waheed M. Butt EXECUTIVE SUMMARY The world-wide chemical manufacturing forms the fabric of the modern world. It exchanges sanctioned cranky materials into to a greater extent than than 70,000 diametrical products, non merel y for assiduity, hardly overly for all the consumer goods that people rely on in their daily life. The modern chemical industry is divided into four freehanded categories, comprising basic chemicals, life sciences, extraty chemicals and consumer products.Its corking success is largishly repayable to everlasting(a) scientific and scientific break through with(predicate) and throughs and advances, which pre pass led to the development of clean products and formes. chemical industry development in Pakistan has been classified into (i) the primary field chemical industry and (ii) the unoriginal field chemical industry. patriarchal heavens industries be coarse-scale, cap intense industries comprising refineries, petrochemicals, in shaped sp oil, metallurgical and mineral establish projects. They overly bequeath feedstocks for the secondary chemical industry. petty(a) industries atomic number 18 based on feedstocks all derived from primary vault of heaven ind ustries, or an early(a)(prenominal) option sources of raw materials. These be s slack hood intense and argon based on luxuriously, average or less forward- hold offing technologies. The secondary heavens industries form the groundwork for the profferd chemical Industry Development imagery 2030. autochthonic sector industries which provide feedstocks for the development of secondary sector chemical industries, as healthful as early(a)wise(a) preference sources of feedstocks incorporate of (i) Petroleum and petrochemical refineries.These provide petrochemical negociate chemicals, which form the building blocks for the behave of a very gargantuan number of secondary chemicals, a great deal(prenominal) as polymers, lineaments, pharmaceuticals, drugs, dyes and colours, insecticides, pesticides, resins, paints, pigments, specialty chemicals, and a very large number of consumer and crook materials and products. (ii) Natural shove along based chemicals, which c onsist of methanol and ammonia. These can too be utilise for the yield of a large number of secondary chemicals. (iii) metallurgical metals and non-metals based secondary chemicals and products. administrator thick knave i of septet (iv) Alternative re sassyable feedstocks for the merchandise of secondary chemicals consist of bio-mass, pastoral s bemuses, oils and robusts, molasses and post alcohol. (v) Unconventional immanent bodge. (vi) Mineral based secondary chemical industries derived from sear, limestone, gypsum, rocksalt, silica sandpaper and sulphur. (vii) Vegetable and herbal tea plants utilise in the employment of secondary chemicals, much(prenominal)(prenominal) as dyes, medicines, drugs, cosmetics and associated products. The development of secondary chemical industries atomic number 18 divided amid projects ased on advanced(a) technologies, and those based on medium and less sophisticated technologies. Development of the chemical industry in Pakist an is lagging behind those of differentwise emerging securities industrys. The dissimilar component intakes which drop hampered the development of this industry in Pakistan ar (i) An down the st air world powersdevelop industrial root word. (ii) Reliance on irrelevant engineering and formulation companies for the commercialization of topical anaestheticly developed or merchandise technologies. (iii) Imports of second-hand extremely expertness intensive plants based on antiquated technologies. iv) Reliance on the development of election based, starting time technology, bray intensive products for export. The intent of Chemical Industry Development Vision 2030 is for (i) Pakistan to create its own authority and chance upon self-reliance in project design, engineering and the wind management inevitable for the commercialization of technologies. (ii) To develop dexterity in the increase of medium and amply-pitched technology based chemicals for export, alongside to the perplex industrial structure based on low technology imaging based products. iii) To provide fitted incentives to entrepreneurs for the development of an exportoriented chemical industry. Executive Summary rapscallion ii of vii The development of the chemical industry in Pakistan started in the 1950s and is based on five year plans, with the first plan covering the 1955-60 period. Economic product was based on a policy of import substitution, resulting in varying rates of process of in the midst of 3. 1-6. 8% over 1950-70. However, this masks a exceedingly variable death penalty the rate of growth slowed in the early mid-seventies to an yearbook average of 4. %, but the thriftiness was revitalized in the late mid-seventies and 1980s, before weakening again. However, in national opinion of the inconsistencies in the development of employment policies gear towards export-led growth, Pakistan has failed to boost exports of its even outd goods. By comp arison, sparing growth in south-east Asiatic countries from the 1960s onwards, and in India, china and another(prenominal) late comers from the 1980s, was driven by their exportoriented industrialization policies. All these countries introduced market reforms and provided variant incentives and subsidies in order to enhance their exports of manufactured goods.In accompaniment, these countries excessively developed their own technology and engineering infrastructure by virtue of which they achieved autonomy in the recitation and commercialization of their technologies. As a result, they clear achieved strong annual average growth rates of amidst 8-11% over the past 3 decades. Traditionally, exports from Pakistan remove been dominated by goods engenderd with low technology, resource based feed stocks, much(prenominal) as materials, cotton, readymade garments and leather. These comprise around 60% of thoroughgoing exports.The composition and package in exports of m edium and high technology based products, comprising chemicals, petrochemicals and other manufactured products is very small and has fluctuated between 8-10% of total exports from Pakistan. Conversely, Pakistan has a very high dependence of imports of high esteem-added goods, which be more expensive. Chemicals, drugs, medicines and dyes, as closely as big(p) plant, equipment and machinery, together account for about 40% of total imports with an estimated value of US$16. 3 gazillion for the year 2007/08.As a result, the trade balance has been regularly increase and stood at US$20. 9 trillion in 2007/08. Present trends in Pakistans exports of reduce technology goods indicate that it is facing increase competition from India, mainland China and Bangladesh. In addition, world-wide have for Executive Summary summon iii of vii these products is declining, and the read for high technology products is rapidly growing. This situation calls for a concerted effort towards the deve lopment of a chemical industry based on medium and highly sophisticated technologies.Pakistan has only developed its basic industries, consisting of refineries, fertilizers, cement, abrasion, polyester characters and some other petrochemical based polymer industries, to fulfill local demand. These industries commit been preponderantly developed by extraneous engineering corporations, which were awarded contracts on turnkey basis. However, Pakistan has failed to plunge these imported technologies, or intake them either for the replication of these plants or in the development of associated chemical projects.This dependence on the business and exports of low-valued added goods has held back Pakistans stinting sufficeance and revenue-earning potential. By comparison, South and south-east Asian countries put special emphasis on the development of high technology goods for export. They achieved this through trade liberalization, but their governments similarly introduced industr ial policies that foc employ on the maintenance of macro frugalal st cleverness, the provision of industrial and technology infrastructure, improvements to market institutions and high levels of public enthronement.These countries found public organizations which supported product activities, but they in like manner relied on private firms for the success of their industrial policies. For example, China, which retains its socialist form of governance, introduced market reforms and advocated the supposed Open Door Policy. It also created devil large public sector corporations China internal Petroleum Corporation (CNPC), for the exertion and exploration of oil and gas and China Petrochemical Corporation (SINOPEC) for the development of its petrochemical industry.China also created Petro-China as a guardianship Comp whatever, which offered its sh atomic number 18s on outside(prenominal) markets. The value of this comp any(prenominal) was estimated at US$100 cardinal in 19 99, but has since risen to US$1. 1 gazillion in 2008. The salient features of Chinas public private subprogramnerships (PPPs) is that the public sector is the study sh arholder in the development of its capital intensive industries, whereas the private sector is the majority equity partner in the development of secondary projects. Executive Summary scallywag iv of viiRapid industrialization in Japan and South Korea was driven by multinational conglomeratesKeiretsus and Chaebolswhich created vertical and horizontal diversification of their communication channeles, with the active support of their respective governments. This pattern, in legion(predicate) cases has been followed by unusedly industrialized countries (NICs). Pakistans industrial infrastructure is particular and it relies in general on foreign design and engineering companies for the commercialization of local and imported technologies.Therefore, there is immediate need for enhancing and modernizing its nationa l innovation system (NIS). This is the framework by which a country brings about technological change, and consists of research and development (R&D) institutions, the infrastructure for commercialization of technologies, the structure of educational and technological institutions, regulative agencies, information networks, fiscal institutions and marketing. Process science and engineering technology (PS&ET) is an of the essence(p) character of a NIS and is the foundation for the development of the chemical industry.It integrates various elements of the attend toes of commercialization, from R&D to handle design, project engineering, complex body part, operations and marketing management. interpreted together, these provide the basis for manufacturing excellence and sustainable competitive advantage. In order to attain the goals of Chemical Industry Development Vision 2030, it is essential for Pakistan to enhance its PS&ET capability. We propose that the scope of the Engin eering Development Board should be intensify and given the additional responsibility to modernize and effecten the NIS as the basis for technology development.In order to achieve this objective, three committees should be established under the direction of a Technology Development Board (which lead be an enhanced Engineering Development Board) (i) A National delegation for research and technology development, (ii) A National Committee for the development of softw ar program and hardw be for the commercialization of technologies. Executive Summary Page v of vii (iii) A National Committee for the development of technology policy and enthronisation planning.The role of the National Committee for research and technology development leave behind be to foster linkages between universities, R&D institutions and the chemical industry. dissimilar tasks to be undertaken by this committee ordain involve the formation of sub-committees for different sectors of the chemical industr y identification of problems of each sector infusion of R&D teams from universities, industry and R&D institutes for multidisciplinary research continual appraisal and stinting evaluation of research laboratory and pilot scale work and selection and pull inion of technologies for commercialization.The processes of commercialization of local or imported technologies depends on the operation of science, engineering, design, orchestration and control, safety and env ironment, and some other aspects of capital plant manufacturing, verbalism, operations and marketing management. In order to develop local capability in various areas of project management, we propose the formation of a National Committee for the development of software and hardware as PPP projects.The functions of this Committee will be to support the development of existing or new engineering companies for various tasks. These embroil the identification of new projects the preparation of investment studies on inte rnational criteria the formation of financial packages the development of software and hardware and its application in design and engineering the development of engineering specifications for capital plant manufacturing twisting management and galore(postnominal) other functions much(prenominal) as revamping and modernization of old plants, and facilities for throwback engineering.The successful utilization of various components of technology will depend on the ability of the government to foster PPPs with the involvement of industrial and venture capital institutions and a vibrant entrepreneurial class. We suggest that a National Committee for the development of technology policy and investment wide of the markcastning should be established for (i) The provision of suitable incentives to potential investors, in order to accelerate the processes of chemical industry development and the revision of industrial policies on continual basis.Executive Summary Page vi of vii (ii) The development of investment policies and infrastructure for capital formation. In order to accelerate the formation of investment, we recommend that a Holding Company should be established with the friendship of the financial sector, international donors, friends of Pakistan, overseas Pakistanis and other investors, who would be invited to subscribe as share holders in this beau monde. Profiles of various sectors of existing chemical industries in Pakistan have been prompt.These consist of human existences present and projected outturn, World trade, local drudgery in Pakistan, local market size, local demand, imports, rising prospects for each sector of industry, SWOT analysis with special references to weaknesses, threats and opportunities as fountainhead as present tariff structure on Pakistan. Proposals for the future developments of Secondary Industries in Pakistan have been prepared and suggestions for the development of secondary chemical projects based on locally ob tainable as well as imported materials have been made.The proposed industries have been divided into various sectors consisting of minerals, metallurgical, agro-based alternate sources of cogency, oils and fats and petrochemicals based projects. A number of potential projects in each sector have been proposed and it is suggested that EDB initiate the development of feasibility studies on each of these projects for their future writ of execution. An integrate plan for development of NIS has been proposed and various other equirements consisting of the application of computational technologies, human resource conveyments, and the development of coherent industrial policy are also considered necessary. An Industrial Master Plan must be prepared for the implementation of various elements of the NIS, which should identify Pakistans capabilities and limitations in various priority sub-sectors of the chemical industry. It should develop policy measures and provide fiscal incentives in order to promote investment in various sectors of chemical industry.The development of a NIS on international standards will provide tens of thou sands of job to Pakistans highly measure up manpower. Executive Summary Page vii of vii CHAPTER 1 1. 1. 1 celestial orbit OF THE WORLDS chemical substance application Scope of the Chemical Industry The chemical industry comprises the companies that get under ones skin industrial chemicals. It is profound to the modern world preservation, as it converts raw materials into more than 70,000 different products. The chemical industry is more several(a) than virtually any other industry in the world. Its products are omnipresent.Chemicals are the building blocks for products that stomach our well-nigh(prenominal) fundamental needs for food, shelter and health, as well as products vital to the high technology world of computing, telecommunications and biotechnology. They are apply to come across a wide renewal of consumer goods, and are also inputs in agriculture, manufacturing, construction and services industries. In particular, chemicals are a keystone of world manufacturing, as they are an integral component of all manufacturing sub-sectors, including pharmaceuticals, automobiles, fabrics, furniture, paint, paper, electronics, construction and appliances.It is difficult to fully enumerate the uses of chemical products and processes, but the following nomenclature gives some indication of the level of diversity Polymers and plastics peculiarly polyethylene, polypropene, poly vinyl chloride, polyethylene terephthalate, polystyrene and polycarbonatecomprise about 80% of the chemical industrys siding worldwide. The chemical industry itself consumes 26% of its own rail course siding. Major industrial products let in synthetic rubber and plastics, textiles, apparel, polymers, pulp and paper, and primary metals.Chemicals are to the highest degree a US$3 meg planetary enterprise, with chemical companies in t he EU, US and Japan being the worlds largest obtainrs. 1. 2 Category Breakdown of the Chemical Industry The marketing of the chemical business can be divided into a few broad categories, including basic chemicals (about 35-37% of US dollar widening), life sciences (30%), specialty chemicals (20-25%) and consumer products (about 10%). ___________________________________________________________________________ Chapter 1Page 1 of 1 BASIC CHEMICALS or commodity chemicals are a broad chemical grade, which let in polymers, bulk petrochemicals and averages, other derivatives and basic industrials, in native chemicals and fertilizers. Polymersthe largest revenue element, at about 33% of the basic chemicals US dollar value imply all categories of plastics and man-made characters. The major markets for plastics are packaging, followed by home construction, containers, appliances, pipe, goation, toys and games.The largest heap polymer product, polyethylene (PE), is utilise mainly in packaging films and other products, such as milk bottles, containers and pipes. Polyvinyl chloride (PVC), other large spate product, is principally utilise to make pipes for construction markets, as well as siding and, to a much smaller extent, transport and packaging materials. polypropylene (PP), which is similar in volume to PVC, is utilize in markets ranging from packaging, appliances and containers, to clothing and carpeting.Polystyrene (PS), a nonher large-volume plastic, is utilise principally for appliances and packaging, as well as toys and recreation. The conduct man-made fibers embroil polyester, nylon, polypropylene and acrylics, with applications including apparel, home furnishings, and other industrial and consumer use. The principal raw materials for polymers are bulk petrochemicals. Chemicals in the bulk petrochemicals and mediums kinfolk are primarily made from liquefied egregious gas (LPG), natural gas and naphtha. Their gross sales volume is close to 30% of total basic chemicals.Typical large-volume products include ethylene, propylene, benzene, toluene, xylenes, methanol, vinyl chloride monomer (VCM), styrene, butadiene and ethylene oxide. These chemicals are the starting signal materials for most polymers and other constitutive(a) fertilizer chemicals, as well as much of the specialty chemicals category. new(prenominal) derivatives and basic industrials include synthetic rubber, surfactants, dyes and pigments, resins, carbon black, explosives and rubber products. They post about 20% to basic chemicals out-of-door sales. ___________________________________________________________________________ Chapter 1Page 2 of 2 Inorganic chemicals (about 12% of revenue output) are the oldest of the chemical categories. Products include salt, chlorine, caustic soda, soda ash, acids (such as nitric, phosphoric and sulfuric), titanium dioxide and hydrogen peroxide. Fertilizers are the smallest category (about 6%) and include phosphat es, ammonia, urea and potash chemicals. LIFE SCIENCES (about 30% of the dollar output of the chemical business), include differentiated chemical and biological substances, pharmaceuticals, diagnostics, forcible health products, vitamins and fit out protection chemicals.While much smaller in volume than other chemical sectors, their products tend to have very high pricesover US$10 per poundwith research and development (R&D) spending at 15-25% of sales. carriage science products are usually elicitd to very high specifications and are closely scrutinized by government agencies such as the US Food and Drug Administration (FDA). tramp protection chemicals, about 10% of this category, include herbicides, insecticides and fungicides. SPECIALTY CHEMICALS are a category of sexual intercoursely high value-added, rapidly growing, chemicals with diverse end-product markets.They are generally characterized by their progressive aspectsproducts are sold for what they can do rather than f or what chemicals they contain. Products include electronic chemicals, industrial gases, adhesives and sealants, as well as coatings, industrial and institutional cleaning chemicals, and catalysts. Coatings comprise about 15% of specialty chemicals sales, with other products ranging from 10-13%. distinctiveness Chemicals are sometimes referred to as fine chemicals. CONSUMER PRODUCTS include direct product sales of chemicals such as soaps, detergents, and cosmetics.The chemical industry has shown rapid growth for more than fifty dollar bill years. The fastest growing areas have been in the manufacture of synthetic organic polymers use as plastics, fibres and elastomers. Historically and currently the chemical industry has been concentrated in three areas of the world Western europium, North the States and Japan (the so-called Triad). The EU remains the largest enkindler, followed by the US and Japan. ___________________________________________________________________________ Cha pter 1Page 3 of 3 The traditional dominance of chemical product by the Triad is at a time being challenged by changes in feedstock availability and price, labour and energy costs, differential rates of frugal growth and environmental compresss. Instrumental in the changing structure of the ball-shaped chemical industry has been recent rapid economic growth in China, India, Korea, the Middle East, Southeast Asia, Nigeria, Trinidad, Thailand, Brazil, Venezuela, and Indonesia. 1. 3 Research and Development in the Chemical IndustryThe outstanding success of the global chemical industry is largely due to scientific and technological breakthroughs and advances, facilitating the development of new products and processes. The US chemical industry presently spends about US$17. 6 billion annually on R&D. In fact, according to study by the play for the Future (IFTF), the chemical industry is one of the eight most research-intensive industries. The scientific and technical research of these industries makes our lives safer, longer, easier and more productive.When one re gulls the parts of the chemical industry to our civilization, it becomes clear that rather than any single item-by-item invention or technological breakthrough, it has been the industrys overall commitment to R&D that has been its most significant legacy. Investment in R&D is the single greatest device device driver of productivity increases, accounting for half or more of all increases in output per person. R&D is the source of new products that improve our quality of life, and new processes that alter firms to reduce costs and increase competitiveness.As we look to the future, it is apparent that continued investment in technology is necessary for industry to meet the needs and expectations of future generations. Reaching the goals of Chemical Industry Development Vision 2030 will require Pakistan to build its technology infrastructure, consisting of investment in technology development, co mputer assist design, engineering, plant and equipment manufacturing, construction and marketing management. These areas of development have been grossly neglected in the past and are the major reasons for the present p fainthearted of the chemical industry in the country. __________________________________________________________________________ Chapter 1 Page 4 of 4 The industrial sector drives the global economy, jointly transacting almost US$3 gazillion per annum. An industry is a collection of companies that perform similar functions. Industry can be utilise to refer to all company groups, or as being a set of entities that utilize productive draw and quarters to convert a simple input into a urbane final product. The size of various industries varies by country, level of development and external demand. . 4 Classification of the Chemical Industry Development of Pakistan Vision 2030 For the purpose of the Chemical Industry Development Vision 2030, this industry is divi ded into main(a) sector industries and Secondary sector industries. Primary Sector Industries The Primary sector industry generally involves the metempsychosis of natural resources into primary products. These are large, highly sophisticated, technology-based, capital intensive projects consisting of (i)Petroleum cultivation and petrochemical industries for the takings of petrochemical intermediates, olefins (ethylene, propylene, butylenes) and BTX (benzene, toluene, xylene), all of which form the basis for the development of monomers, polymers and plastic industries. (ii) Natural gas based projects for the production of ammonia, methanol, fertilizers and associated products. (iii) Mineral based industries consisting of cement, limestone, gypsum, sand and salt. (iv) Smelting and refining of ferrous and non-ferrous metals. They also garden truck raw materials for Secondary industries. v) Agriculture and solid ground Industries These constitute naturally occurring, renewable s ources of raw materials, such as cotton, oils and fats, sugar, agricultural wastes (bio-mass) and raw materials for a large number of downriver industries. ___________________________________________________________________________ Chapter 1 Page 5 of 5 Secondary Sector Industries The principal objective of Secondary sector industries is to provide the conjugation link between products and materials establishd by Primary industries, which are of practical use to the national economy.This implies that the Secondary industries rely on the Primary industries for feedstocks and raw materials for use in manufacturing, impact, amalgamate, fabricating plants for petrochemical intermediates, polymers, plastics, leaf blade, non-ferrous metals, minerals, agricultural and miscellaneous products. These industries use medium- to high-sophisticated technology, and range from light to medium categories. THE indirect SECTOR INDUSTRIES volition FORM THE BASIS FOR CHEMICAL persistence DEVEL OPMENT IN PAKISTAN VISION 2030. __________________________________________________________________________ Chapter 1 Page 6 of 6 CHAPTER 2 2. POTENTIAL FOR THE DEVELOPMENT OF SECONDARY CHEMICAL INDUSTRIES BASED ON FEEDSTOCKS DERIVED FROM primary quill INDUSTRIES 2. 1 Feedstocks Derived from Primary Industries for the Potential Development of Secondary Chemical Industries Primary chemical industries, which are manufactured through the utilization of various feedstocks, consist of large-scale, highly capital intensive plants, based on sophisticated technologies.These projects also provide raw materials for the development of secondary chemical industries and consist of rough oil based refineries and petrochemical complexes. Natural gas based chemicals and fertilizer projects. Alternative renewable feedstocks for the production of commodity chemicals Metallurgical plants for the production of iron, trade name, and non-ferrous metals. some other mineral projects consisting of acid and basis industries, and cement and glass plants based on limestone, gypsum, rock salt, sulphur and silica. Projects based on agro feedstocks. uncouth inunct found Petroleum and Petrochemical Refineries Petroleum refineries are knowing to produce a check number of products, which are primarily used as a source of energy in road, rail and air transport power plants steamer generation and estrus media in the chemical industry. They do not produce high value-added chemicals unless they are integrated with petrochemical plantsgenerally designated as Petrochemical Refinerieswhich are highly energy cost-efficient and produce diversify feedstocks and raw materials for a large number of secondary chemicals.A petrochemical is any chemical conglomerate obtained from petroleum or natural gas, or derived from petroleum or natural gas hydrocarbons and utilized in the production of a large classification of secondary chemicals and products. The description has been broadened to include the whole range of aliphatic, smelling(p) and organic ________________________________________________________________________________________ Chapter 2 Page 1 of 23 chemicals, as well as carbon black and such inorganic materials as sulphur and ammonia. In umteen instances, a specific chemical include among the etrochemicals may also be obtained from other sources, such as burn, coke or bio-mass. Petrochemical based secondary chemicals include such items as plastics, soaps and detergents, solvents, drugs, fertilizers, pesticides, explosives, synthetic fibers and rubbers, paints, epoxy resins, and ball over and insulating materials. Petrochemicals are found in products as diverse as aspirin, boats, automobiles, aircraft, polyester and acrylic fibers, preserve discs and tapes. Natural gas and crude oil are referred to collectively as petroleum. archaic oil consists of the heavier constituents that naturally occur in liquid form.Natural gas refers to the lighter constitu ents of petroleum that naturally occur in volatilised form, either on its own as free gas, or in draw with crude oil. The production of petrochemical based intermediate chemicals form the feedstocks for secondary industries as part of a two phase angle process. In the first stage, crude oil is distilled and fractionated to produce a number of products consisting of gasoline, naphthas, and light and legal gas oils, which are used as a source of energy for road and air transport, and power generation.Simultaneously the off gases, light and heavy naphthas, and gas oils are preponderantly used as the starting materials for petrochemical projects. This is illustrated in build 2. 1. In the second stage the off gases and naphthas are further processed into two separate operations to produce Petrochemical intermediate chemicals or monomers as follows ________________________________________________________________________________________ Chapter 2 Page 2 of 23 Petrochemical Feedstocks Crude Oil To Petroleum Refinery Atmospheric distillate Methane &Off Gases Gasoline And Motor sum Light and surd Naphtha Light and Heavy Gas Oil Residue Petrochemical Feedstock Off Gases/Naphtha/Gas Oil Catalyst gingersnap Aromatics steamer Cracking Olefins name 2. 1 Olefin Petrochemical multiform Refinery off gases, naphthas or gas oils are reformed at high temperatures in the presence of steam to produce monomers (ethylene, propylene and butylenes). These are gases at ordinary temperatures and pressures and can only be transported at high pressures and low temperatures as liquids under refrigerated condition.These are earlier processed further at web site to produce secondary petrochemical products or polymerized into polymers, such as polyethylene, polyvinylchloride, polystyrene, ethylene glycol and many other secondary chemicals as illustrated in fig 2. 2 and 2. 3. ________________________________________________________________________________________ Chapter 2 Page 3 of 23 STEAM cinch OF STEAM NAPHTHA / turgidity OIL NAPHTHA / ASSOCIATED GAS / GAS OIL STEAM ethene REACTOR Steam to Feed ratio 0. 25 to 0. 9 Temperatures 820 to 840oC Propylene Butylenes Fig 2. 2 OLEFINS AND PETROCHEMICAL INTERMEDIATES BASED SECONDARYCHEMICAL INDUSTRIES map I THERMAL CRACKING OF NAPHTHA FOR THE achievement OF PRIMARY CHEMICALS (HIGHLY SOPHISTICATED, CAPITAL INTENSIVE PROCESS) ETHYLENE propene BUTYLENES POLYETHYLENES LDPE,HDPE POLYPROPYLENE POLY VINYL CHLORIDE POLYSTYRENE SBR ETHYLENE dihydric alcohol POLY VINYL ACETATE STAGE II POLYMERIZATION OF PRIMARY CHEMICALS FOR THE PRODUCTION OF SECONDARY CHEMICALS AND POLYMERS. (MEDIUM TECHNOLOGY BASED PROCESSES). PLASTICS FILMS CONTAINERS PIPES,CABLES, BAGS SYNTHETIC preventative & LEATHER PRODUCTS TYRES TOYS ELECTRICAL EQUIPMENT RADIO, TV, AIR CONDITIONERS, REFRIGERATORS FURNITURE, TABLEWARE front CREATION BACKWARD INTEGRATIONASSOCIATED GASES OR NAPHTHA STAGE III FABRICATION OF SECONDARY CHEMICALS FOR THE PRODUCTION OF CONSUMER PRODUCTS. (LOW/MEDIUM TECHNOLOGY BASED PRODUCTS) Fig 2. 3 ________________________________________________________________________________________ Chapter 2 Page 4 of 23 Other Olefins found SecondaryChemicals Naphtha Steam Cracker (Olefins) ethylene & Derivatives ethylene EDC Ethylene Glycol Ethylene Oxide HDPE LDPE LLDPE EPDM Ethanol weighty Olefins Vinyl Acetate Ethyl Chloride / Ethyl benzol Propylene & Derivates Propylene propenonitrile Cumene Polypropylene Acrylic Acid butanol 2-Ethyl Hexanol Iso-Propanol NoneneDodecene Propylene Oxide Acetone Acrylic character reference Butadiene & Derivatives Butadiene ABS Adiponitrile /HMDA Nitrile Rubber Poly-Butadiene Poly chloroprene SB latex paint SB Rubber Fig- 2. 3(a) Aromatic Petrochemical Complex Naphtha and gas oil is also catalytically reformed at high temperatures in the presence of catalysts to yield aromatic intermediate chemicals, such as benzene, toluene and xylenes (Fig 2. 4). These are liquids at ordinary t emperatures and pressures and can be easily transported to desired locations where they are used as raw materials in the production of a regeneration of secondary chemical products as shown in Fig. . 5. ________________________________________________________________________________________ Chapter 2 Page 5 of 23 catalytic REFORMING OF NAPHTHA CATALYTIC (AROMATIZATION REACTION) NAPHTHA / ASSOCIATED GAS / GAS OIL benzol CATALYTIC REACTOR STEAM toluene Xylenes Fig-2. 4 Aromatics Based Secondary Chemicals Naphtha catalytic Reformer (Aromatics) Toluene & Derivatives Benzene TDI Caprolactam benzoic Acid TNT Xylenes & Derivates Orthoxylene Paraxylene Metaxylene DMT TPA Bottle resin Polyester Fiber Fiber Chip hit Resin Phthalic Anhydride PET Benzene & Derivatives Benzene ) Cumene ) hydroxybenzene ) Cyclo Hexane )Ethyl Benzene ) Adiplc Acid ) alkyl radical Benzene ) Aniline ) Alkyl Phenol ) Chloro Benzene ) Maleic Anhydride ) Nylon Fiber/Resin ) Production of Secondary Chemicals Med ium / High Technology Chemicals and Products Production of Primary/Intermediate Chemicals (Highly advanced Capital Intensive) Fig 2. 5 ________________________________________________________________________________________ Chapter 2 Page 6 of 23 2. 2 Natural Gas Based Chemicals Natural gas is a very worth(predicate) resource, not only for use as energy, but also for the production of chemicals. It has been used commercially as a force out for hundreds of years.The production, processing and distribution of natural gas has become an important segment of the world economy and is a major factor in the production of chemicals in global markets. The composition of natural gas depends on its source. It predominantly consists of methane, but in many cases contains high hydrocarbons such as ethane and propane. Natural gas processing plants are designed to produce certain valuable products over and above those needed to make the gas marketable. Plants are also designed to recover elemen tal sulphur which is the starting raw material for the production of many secondary chemicals.Natural gas has created multifarious opportunities and challenges as it is now utilized in the production of fertilizers and petrochemicals, in addition to its earlier use as a source of energy. This is illustrated in Fig 2. 6. ________________________________________________________________________________________ Chapter 2 Page 7 of 23 Household Gas Fig -2. 6 ________________________________________________________________________________________ Chapter 2 Page 8 of 23 FIG-2. 7 ________________________________________________________________________________________ Chapter 2 Page 9 of 23 2. 3Alternative Feedstocks for the Production of goodness Chemicals The uncertainties about the peaking of practicable reserves of fossil burns, and rising prices of petroleum and natural gas, have spurred the chemical industry to examine alternative feedstocks for the production of commodity chemi cals. over the last two decades alternatives to conventional petroleum and natural gas feedstocks have been developed. These feedstocks include burn based gasification and liquefaction processes and renewable resources such as bio-mass, stranded natural gas from improper reserves, heavy oil from Tar sands or oil shale.These sources of alternative feedstocks are in the process of development for highest volume production of commodity chemicals in Europe and the US. The technology for their utilization is in the process of development, in order to make these processes more efficient and economically compatible with petroleum based technologies. The status of various available feedstocks and the technological development for their growing for the production of secondary chemicals is as follows coal inviolable world coal reserves make it an attractive alternative to natural gas and petroleum.The technologies for large scale processing of coal are at present available in South Afri ca and China. However, a major concern about the utilization of these technologies is the divergence in feedstock composition and the presence of impurities which embitter the catalysts used in the processing of coal. char Gasification Commodity chemicals can be produced through the gasification of coal. Because of the large domestic help reserves of coal in Pakistan, this feedstock option needs to be exploited. Coal gasification for application, including the production of chemical feedstocks, is already astray practiced worldwide.These plants generate feedstocks for chemical production, closely followed by the Fischer Tropsch process for the production of organic chemicals. ________________________________________________________________________________________ Chapter 2 Page 10 of 23 The gasification process starts with the production of synthesis gas in a gasifier, followed by the production of a mixture of carbon oxides and hydrogen. Ammonia, methanol, alcohols and aldeh ydes are produced by Oxo Synthesis. The Fisher Tropsch process is used to produce a variety of secondary chemicals.Different coal types (lignite, bituminous, sub-bituminous) affect the efficiencies and economies of the gasification process, since gasification efficiencies are lower for sub-bituminous coals due to higher(prenominal) wet and ash content. However, since essentially any organic material can be gasified, existing gasifier designs can be adopted to use different types of coal as gasifier feed. Coal Liquefaction Coal can also be liquefied directly, without going through a Syngas step. This process is called the Coal to Liquid or CTL process and is well be.Liquefaction uses liquid distillate and hydrogenation, where hydrogen is added to coal and water slurry. The slurry increases the total heat/Carbon (H/C) ratio to a crude oil level and removes impurities such as sulphur. Coal Liquefaction technology is of particular care for the utilization of Thar Coal, which has a hi gh wet content. A full scale production facility is being built in China for the direct liquefaction of coal into battery-acid fuels to produce 50,000 bbl/day of fuel oil. A similar project could be developed for Thar Coal with the participation of Chinese Process Licensors. Bio-RefineryA major thrust towards the development of renewable feedstocks as a resource for energy and secondary chemicals is by a process called bio-refining. Bio-refining feedstocks consist of crops residues waste plants or animal material and recycled fibers municipal sewerage sludge agricultural and forest residues house waste agro-feed effluents and residues of paper and wood functional industry. These plants absorb solar energy from the insolate through photosynthesis, and the energy stored within it is retrieve by bio-refining processes. ________________________________________________________________________________________Chapter 2 Page 11 of 23 The bio-refining concept generally involves victu als bio-feedstocks into steam or catalyst insane to produce chemicals. Some technologies are in the process of development for the processing of carbohydrates, oils, lignin and fuels. In addition to their utilization for energy production, some bio based chemicals that have potential for large scale manufacture include carboxyl acids and glycols. Other areas of development include turmoil of sugars, decomposition of cellulose, high temperature pyrolysis, and bio-refining of wood and waste materials.However widespread use of feedstocks will require sustained research and development(R&D) in a variety of fields such as plant science, microbiology, genomics and catalysis. In view of the impurities, discrepancy of feedstock composition, distributed supply, scalability and path way of lifes for the breakdown of cellulose, the development of process technology will have to be undertaken and / or adapted to local conditions by each country, in order to exploit the utilization of bio-mass feedstocks for economic advantage. Unconventional Natural GasMethane from anaerobic excitement can be generated from animal manure and sewage treatment, as well as from landfills. The potential for anaerobic fermentation as a source for useable methane, rather than a source of pollution, will require development work leading to improvements in process control, operating efficiencies and rate of digestion, targeting small scale technologies. Renewable energy sources are indigenous and can, therefore, render to cut down dependence on energy imports, such as crude oil, resulting in increasing security of supply as well as resources for the production of commodity chemicals.Developments in renewable energy resources can actively contribute to job creation, predominantly in small- and medium-sized industries which are so central to economic slaying. The deployment of renewable resources can be a key feature in regional development, with the aim of achieving greater social and econom ic cohesion, largely for environmental reasons. ________________________________________________________________________________________ Chapter 2 Page 12 of 23 2. 4. Feedstocks Derived from Metallurgical Plants and Polymers, Materials Technology and Metallurgical ProcessesMaterials technology is one of the many areas targeted by the chemical industry. Materials play a critical role in the economic development and growth of chemical process industries. New materials technology is an essential part of the industrys strategy for achieving its vision. Materials contribute a large amount to industry revenue, and represent a high growth potential for industry. Ferrous and non-ferrous metallurgical processes consisting of iron, steel, copper, aluminium, atomic number 12 and associated alloys have been used traditionally as feedstocks for the development of secondary chemical industries.Tremendous advances in the twentieth century in the development of new synthetic materials have also fu eled the growth of the chemical industry. deputy of traditional materials with synthetic polymers and conglomerate materials has resulted in products with lower weight, better energy efficiency, higher performance and durability, and increased design and manufacturing flexibility. Metallurgical Industry The traditional iron, steel and non-ferrous metallurgical industries produce valuable primary products which are important starting materials for the production of secondary chemical products.They are used by almost every manufacturing industry for the untruth of capital plants and equipment the manufacture of automobiles, railways, agricultural and construction equipment and components and spare parts for operating plants in the chemical and allied industries. The iron and steel industry is classified into three important primary products according to the order of processing from iron ore to the finished products. The iron ore is calcined and assorted with limestone and coke and introduced into a Blast furnace. The preheated air is fed to the bottom of the furnace. The ore is reduced to iron to produce Pig iron. _______________________________________________________________________________________ Chapter 2 Page 13 of 23 Pig iron is refined by different processes to produce iron castings or billets, rolled wrought iron and rolled/ forge steel by three different processes as illustrated in Fig 2. 8. Fig-2. 8 The primary products of the iron and steel industry, which consist of iron castings, rolled wrought iron, and rolled and forged steel, are the feedstock for a very large number of downstream secondary industries. ________________________________________________________________________________________Chapter 2 Page 14 of 23 Non-Ferrous Metals Non-ferrous metals are produced through two basic operations. In the first operation, the ores are subjected to metallurgical processes to produce basic metals consisting of large blocs or bars. In the second oper ation, the metal is smelted and refined. The secondary smelting and refining of nonferrous metals lead to the production of aluminium, copper, lead, nickel, silver, gold, tin and zinc. These metals are used in wide variety of secondary chemical manufacturing industries, such as ammunition, beverage cans, coins, automobiles and household appliances.Copper possesses superior galvanic conductivity, and is a strong, durable metal used in a variety of geomorphological applications, as well as for power, ignition system and communication transmissions. Domestically, the major markets for copper are construction, electronics, and industrial machinery and equipment. Aluminium, the most widely used nonferrous metal, possesses several positive attributes, such as a light weight, corrosion resistance, and high galvanic and thermal conductivity, which makes the metal suitable for a variety of applications.Container and packaging manufacturers use aluminium, while other major enduse products include the transportation sector, the building and construction sector, and the electrical sector. Lead is primarily used for the manufacture of storage batteries, which in turn are incorporated into automobile ignition starters, un-interruptible power supplies for computer systems, and standby power supplies for speck lighting systems and telephones. Other market sectors that bribe lead include paint and glass manufacturers, and building products manufacturers.Zinc is primarily used to start products found in the automobile, steel and construction industries, but a greater helping of secondary zinc is used to produce brass and bronze, as well as assorted chemicals. Additional applications include the blending of zinc-based die-cast and brass alloys. ________________________________________________________________________________________ Chapter 2 Page 15 of 23 Composite Materials Over the past few years, advances in the production of composite materials, including mixtures o f polymers, fibers, metals and ceramics, have extended the range, performance and applications of these materials.These are made up of individual materials referred to as constituent materials. There are two categories of constituent materials designated as ground substance and reinforcement. The matrix surrounds and supports the reinforcement materials by maintaining their relative positions. The reinforcements impart their special mechanical and physical properties to enhance the matrix properties. A synergy produces material properties unavailable from the individual constituent materials.A wide variety of matrix and alter materials allows the designer of the product or structure to choose any optimum combination. some commercially produced composites use a polymer matrix material often called a resin solution. There are many different polymers available depending upon the starting ingredients. The most commonality are know as polyesters, vinyl ester, epoxy, phenol, poly am ides, amongst others. The reinforcement materials are often fibers and fiber glass, but also commonly ground materials.The average composition in a product contains 60% resin and 40% fiber. Various process technologies consisting of vacuum moulding, pressure moulding, autoclave moulding and resin tape transport moulding are employed in order to give the required properties and strength to the relevant final product. Composite materials have gained popularity in high performance products that need to be lightweight, yet strong seemly to take harsh loading conditions. Examples of these include aerospace components, boat and scull hulls, and car bodies.The new Boeing 787 aircraft, including its wings and fuselage, is composed largely of composite materials. ________________________________________________________________________________________ Chapter 2 Page 16 of 23 2. 5 Other Mineral Based Projects Consisting of Acid and Alkali Industries, Cement and folderol Plants Based on Lim estone, Gypsum, Rock Salt, reciprocal ohm and Silica The mineral potential of Pakistan, although considered excellent, is not adequately exploited as its contribution to GNP at present stands at only 2. 4%.The main sources of locally available feedstocks for the production of the acid and alkali industry (soda ash, sodium bicarbonate, caustic soda, chlorine), sulphur and other inorganic acids, glass and cement, consist of rocksalt, sulphur, limestone, gypsum and silica sand. The manufactured products are predominantly marketed for local use, although there are some exports to Afghanistan and the Central Asian states. In view of the long history of development of industries in this sector, the process technologies are well-known locally.However, the design, engineering and procurement of critical plant and equipment are predominantly carried out by foreign engineering companies. 2. 6. Agro Based Feedstocks Cotton and Other Natural Fibers Agriculture is the largest sector of the econ omy and is the source of livelihood of almost 45% of the total employed labour force in the country. Cotton is the most important non-food crop and feedstock for the production of natural fiber for the manufacture of textile products. Cotton fiber is also blended with polyester and viscose fibers.The textile and clothing industry has been the main driver of Pakistani exports for the last sixty years, in terms of both foreign property earnings and job creation. The textile industry flourished under official patronage, but disjointed its advantages in the post quota regime. Its share in exports has declined from 66% in 2005 to 53. 7% in the current 2008-09 financial year. The textile industry is based on relatively low to medium technology, but in rancor of this Pakistan has spent US$7. 5 billion on the import of textile machinery over the past ten years (1999-2009).Pakistan did not make any effort to adopt ___________________________________________________________________________ _____________ Chapter 2 Page 17 of 23 imported technologies for the manufacture of textile machinery by reverse engineering. In view of these shortcomings, the textile industry has continuously suffered productivity losings due to machinery breakdowns and its inability to cope with running(a) problems. Pakistan is now facing competition from China, India and Bangladesh, in view of their better quality products, higher productivity and other economic advantages.Sugarcane, Molasses, force out Alcohol and Associated Industries Sugarcane is an important gold crop and is a valuable feedstock for the production of sugar and other downstream industries, such as industrial alcohol, chip wit and paper. Molasses is a by product of the sugar industry and is the starting raw material for the production of industrial alcohol, which is used as a source of energy for automobiles, as well as the production of organic chemicals, such as aldehydes, acetone, acetic acid, acetic anhydride, isophor on, citric acid, glycerol, yeast and many other derivatives for pharmaceutical and plastic industries.Fruit and Vegetables The various varieties of fruit produced in Pakistan consist of citrus, mango, apples, banana, apricot, guava, grapes and tomato plantes. Annual production is estimated at 5. 6 million slews per year. The fruit industry is very alter and consist of juices, soups and sauces, baby food, bakery products, confectionary and tomato products. The technology for the processing of fruit is get more sophisticated because of the high demand for quality products. The industry is required to produce food products both economically and profitably, and this depends upon efficient processes.At the same time, these processes must handle the material in such a way that the final product is attractive to the consumer. The fruit industry and its downstream products have spacious export potential. __________________________________________________________________________________ ______ Chapter 2 Page 18 of 23 Natural Dyes Vegetable dyes are eco-friendly and their use is increasing, especially for dyeing wool, carpets, silk and cotton. The common sources of vegetable dyes are parts of plants, such as leaves, flowers, fruit, bugs, barks, and the roots of dye gentle plants.The cultivation of certain trees also yield dye material. Therefore, the utilization of dye pliable plants and trees will boost the agro-based industry especially in pastoral areas, leading to rural development and employment creation. Pakistan imports vegetable dyes from India contempt the fact that the raw materials for their production are available in Pakistan. Dyes and pigments constitute the largest segment of the industry, with the worlds present value estimated at about US$16 billion per year. Herbal Medicines and Associated productsThe Indian / Pakistani system of medicinesgenerally known as the Ayurvedic System of Medicineis considered a completed science of life which has e volved from wisdom, experience and logic. Based on scientific observations, it has its origin in the Vedasthe oldest recorded wisdom circa 6000 BC. Ayurvedic herbal medicines are considered ideal treatments, as they cure the diseases without do any side effects. Herbal medicines and products now include medicines, health supplements, herbal smasher and toiletry products.Major developments in herbal medicines and dish products are now taking bulge in China, South Korea, Canada and the US, in addition to India. It is estimated that the global market for herbal products now stands at US$62 billion per annum. Pakistan has a vast variety of plant life and fauna especially in the Yankee areas, Azad Kashmir and the foothills of the Himalayas, which need to be explored for beneficial exploitation of these resources. ________________________________________________________________________________________Chapter 2 Page 19 of 23 India has established a Technology Development Board which provides financial assistance to R&D establishments concerned with the development and commercialization of indigenous technology for herbal products for wider domestic applications. There is considerable potential for the development of this sector and collaboration with well known companies such as Hamdard and Qarshi can be sought for joint partnerships for the development of herbal projects. Oils and Fats IndustryConventional oils derived from cotton seed, rapeseed and corn are now processed and utilized for the production of bio-fuels in the US and other countries. An alternative source of vegetable oil called Jetropha is now widely cultivated in South and Southeast Asia, especially in Japan, Thailand, China and India. It is a woody and hardy plant, and grows to a apex of 3-8 meters. It grows quickly even in scurvy soils and is not affected by drought and disease. The Macro engineering society of Pakistan, in collaboration with Big Bird (Pvt. ) Ltd. as initiated a project fo r the plantation of genus Jatropha in Layyah, West Punjab. The Jetropha oil seed contains about 40% of vegetable fat/oil and some toxic materials, which makes it poisonous for human and livestock consumption. The process technology for the conversion of Jetropha oil into bio-fuels is well proven and can be adopted in Pakistan. 2. 7 Sources of stabbing Materials and Process Technologies for Chemical Industry Development in Pakistan The sector wise classification of chemical industry in Pakistan is as follows PRIMARY INDUSTRIES SOURCES OF bleak MATERIAL ) Petroleum Refineries ii) Fertilizers Imported Crude Oil local anesthetic Natural Gas, iii) iv) v) vi) Local Materials, Limestone, Clay Imported/Local Ore locally available ore Local Agricultural Raw Material Cement Iron & marque Copper Textiles ________________________________________________________