'Pharma growth is declining'

In an exclusive interview with Business Recorder staff reporters Wasim Iqbal and Tahir Amin, Chairman of D. Watson group, Founder member of Islamabad chamber of commerce and industries, Head of cultural wing Pakistan Muslim League, Zafar Bakhtawari maintained that if the government would focus on providing incentives to the pharmaceutical industry on the same pattern as those provided to the textile industry exports of medicines would skyrocket.
Business Recorder: Was the pharmaceutical industry taken on board with respect to the proposed Reformed General Sales Tax (RGST)? Zafar Bakhtawari: Yes, we were called in the last meeting of National Assembly's Standing Committee on Finance and Revenue. But a brawl began between the Chairman of the Committee, Fauzia Wahab and some of the members of the committee and we were given no chance to share our views with the committee.
BR: Are chemists registered with FBR? ZB: There is no sales tax on medicines and no duty on import of drugs. BR: What is the growth rate of pharmaceutical industry in Pakistan?
ZB: As a result of increasing cost of material and utilities, rise in interest rates, serious law and order situation, the growth of industry has been declining for the last four years. Earlier, this industry registered a 17 percent growth. BR: Why are medicines cheaper in India relative to Pakistan?
ZB: Any multinational request to launch a new drug in Indian market has to be accompanied by transfer of basic technology to India as per Indian drug policy. Indigenous raw material keeps the prices of medicines low. China has also same policy. Unfortunately in Pakistan government allows import of raw material. Only packing is done in Pakistan. Thus the price of life saving drugs is beyond the reach of the poor. BR: What is the volume of our drug exports? What are the hurdles, if any?
ZB: Pharmaceutical industry has been deprived of all incentives. Our government's main focus has been on the growth in exports of our textile industry. If the government would focus the same kind of attention on the pharmaceutical industry we would easily emerge as a major export earner for the country. I want to assure you that our local pharmaceutical companies have the potential to compete with multinationals, which are plundering our people.
BR: Why is there a periodic shortage of life saving and other drugs in the market?
ZB: Smuggling is main factor behind this. In the international market when the price of any medicine goes up, smuggling of these drugs rise and people face shortage of these medicines. I assure you that there is no mafia in the pharmaceutical sector that is playing a dominating role in prices.
BR: Can any client request you to procure a drug that is not available in the country?
ZB: We do import any drug for customers on the advise of their doctor.
BR: What kind of cultural activities are you engaged as the head of PML (Q) cultural wing?
ZB: I am mostly engaged in interfaith dialogue. I consider that very important in spreading harmony between Islam, the dominant religion in Pakistan, and other religions including Christians and Hindus.