Pharma industry - a need to look beyond

Time and again, stakeholders have raised concerns over Drug Regulatory Authority of Pakistans (DRAP) failure to resolve pharmaceutical industry crisis. Yet, the issues are on the same spot as they were back in 2006, which is perhaps why pharmaceutical sectors woes have not gone unnoticed by the central bank.
While directing attention to the decline in pharmaceuticals manufacturing in FY14, central bank, in its latest annual report, offered some noteworthy suggestions besides dwelling on the reasons behind the lackluster growth of pharmaceutical sector.
Of these, drug pricing tops the list of priorities. Here, referring to the countrys pharmaceutical sectors regulatory environment as over-regulatory would not be an incorrect statement. Not only this has kept a lid on margins of pharma players, industry growth seems to have come to a halt. State Bank suggests an early resolution of this issue which lies in coming up with a rational drug pricing policy.
Since dampened margins is linked with soaring import cost of procuring raw materials, the SBP suggests local manufacturing of raw materials wherever possible to keep the input costs in check while also protecting domestic medicine industry. In this context, SBPs suggestion to put in place an import policy that prohibits import of all such raw materials carries great value - only if the government pays heed to this! Mind you, the report highlights that a number of drugs are currently imported and sold at higher rates than locally-produced medicines.
Another area demanding deliberation is the issue of long and unnecessary delays in licensing and registration of drugs. Thanks to the poorly-rated bureaucratic system of health ministry and DRAP. Such delays render innovative medicines as obsolete and carry the risks of influx of cheaper smuggled versions. The central bank asserts DRAP to build on its institutional and operational capacity to streamline the processes and resolve pending cases of licensing and registrations. More important is the need to prioritize the registrations and renewals of life saving drugs to cease the influx of illegal drugs.
Given these issues, pharmaceutical sectors negative contribution to LSM growth during the year shouldn come as a surprise. Rather, its a wakeup call for the government!