‘Pharmaceutical sector can help Pakistan with its export target’

Karachi: As the government seeks to find a way to achieve long-term sustainable growth, the pharmaceutical industry has said that it is a low- hanging fruit that can help Pakistan both in terms of exports and industrial progress.

These remarks were given by Muhammad Aurangzeb, vice-chairman of the Pakistan Business Council (PBC), during a webinar held on Wednesday for the launch of the report titled, ‘Unleashing the Potential of Pharmaceuticals in Pakistan’.

The report said exports of the pharmaceutical sector could hit $5 billion in just a few years as Pakistan emphasizes public healthcare.

“In 2020, the value of the pharmaceutical sector of Pakistan was estimated to be around $3.2 billion, doubling from $1.64 billion in 2011,” stated the report. “Its total exports in 2019 stood at $218 million, up from $44.4 million in 2003. Yet exports from the sector accounted for only 0.9 per cent of Pakistan’s total exports to the world in 2019.”

Expressing his views, panellist Dr Ijaz Nabi, chairperson of the Consortium for Development Policy Research (CDPR) and member of the PM’s Economic Advisory Council, said that the pharmaceutical industry has the potential to change Pakistan's image.

He said that much like how the IT industry changed the image of India, and the garments industry changed the image Bangladesh, similar could be the case with the pharmaceutical sector for Pakistan.

“The timing is absolutely right to focus on the pharmaceutical sector,” said Nabi as the government has been able to attain economic stability during its tenure.

The report was of the view that with global pharmaceutical markets in a flux due to major restructuring, there is an opportunity for Pakistan to enter the global off-patent drugs market that will be worth $700 billion in branded generics and $381 billion in generics by 2025.

It said that Pakistan, with a local market of 215 million consumers and more than 700 pharmaceutical companies, is poised well to gain from opportunities provided under these shuffling global patterns of supply and demand.

The PBC report said that Pakistan should acquire vaccine manufacturing capabilities as a first step.

“In phase I, which can begin immediately, local firms having validated biologic production facilities, or that are willing to invest in the required standards will use imported bulk vaccine concentrate to fill-and-finish vaccines into individual doses. The government will provide long-term purchase/buy-back agreements for these locally produced vaccines, under a public private partnership model,” said the report.

However, Pakistan needs to improve its education standard if it is looking to move forward in the pharmaceutical sector, which is a science and technology industry, said Khaild Mehmood, managing director & CEO Getz Pharma, one of the largest exporters of pharmaceuticals in Pakistan.

“The curriculum of pharmaceutical and chemistry in Pakistan is very old and unfortunately, no government has really looked at it,” he said.

On the other hand, Asif Jooma, chief executive at ICI Pakistan Ltd & former CEO of Abbott Pakistan Ltd, called for an overhaul of the Drug Regulatory Authority of Pakistan (DRAP), a view he shared with the PBC report.

“The regulatory environment in Pakistan is unfortunately regressive which actually compromises on patient interest,” said Jooma. He said multiple stakeholders need to sit together and develop a policy that caters to industry growth as well as patient interest.

The report, in its recommendations, said that a sectoral growth strategy and corresponding action plan is urgently needed.