LAHORE: The country's pharmaceutical sector has earned the distinction of being the only industry that registered growth even during the pandemic. It also contributed to the national economy, showing its capacity to bring Pakistan out of the current economic crisis.
"The pharma companies have increased production during the coronavirus pandemic. And the sector recorded the highest sales in March due to panic buying of chronic therapy medicines," said sources in the pharma industry.
Also, added the sources, all listed pharmaceutical companies posted profits in 2019. Besides, the pharmaceutical sector fetched $1.3 million Foreign Direct Investment (FDI) in April 2020.
"The industry employs 0.5 million people directly or indirectly. The industry can become the biggest employer of the country with millions of jobs for skilled and unskilled people," said the sources.
The pharmaceutical sector has been identified as the sector that could enhance the country's exports to boost foreign exchange reserves, the sources said, adding: "The pharmaceutical industry can enhance the country's self-reliance in drugs and pharmaceuticals, especially in areas of national health requirements."
The government needs to synergize the strength of the pharmaceutical industry and create an enabling infrastructure as Pakistan has the strongest pharma industry in all Muslim countries, the sources said, adding: "Urgent needs of the industry are tariff rationalization, trade-related investment, institutional reforms and easing of business regulations."
The pharma sector has witnessed a 20-percent growth in the last two years, and it is capable of fulfilling the requirements of the whole region as the country is blessed with raw materials being used in manufacturing medicines.
"Pakistan's pharmaceutical industry is an essential, high technology and a strategically important industry," the sources said, adding: "The present growth rate and the market size for pharmaceuticals will double in the next 10 years in Pakistan.
This rate can be increased by government incentives, correct policy direction, robust regulatory environment and intellectual property rights protection."
It may be recalled that Mckinsey & Company in a report commissioned by the Planning Commission of Pakistan and the Asian Development Bank identified the pharmaceutical industry as "a sunrise industry" -- an industry which can lead Pakistan to economic prosperity should there be sound legislative reforms.
The report cites four main areas for the government to focus on to enable growth of the sector: price (reform pricing to support public health and industry performance); FDA (incentives to invest in FDA-quality plants and gain access to largest export markets); production (allow contract manufacturing without limitation); and quality (set high and uniform quality bar and enforce it).
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