Pakistan pharma sector has potential to boost medicine exports to $5 billion over the next few years, the United Business Group (UBG) said in a statement on Friday.
The UBG is an alliance of businessmen belonging to the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) that is considered the apex trade body of the country.
The pharmaceutical sector’s value was estimated at $3.29 billion in the fiscal year 2023-24, with the actual exports totaling at $341 million in the year. The sector contributes over 1% to Pakistan’s gross domestic product (GDP) and saves around $2 billion annually through import substitution, according to UBG the statement.
The sector could play a role in boosting the country total exports, it said.
“To realise the potential, the government should extend incentives to the pharma sector, ensure ease of doing business, and focus on increasing pharmaceutical exports through tariff rationalisation, trade-related investment, and institutional reforms,” UBG leaders were quoted as saying in the joint statement.
Non-essential medicines: Deregulation helps boost pharma industry
The UBG president Zubair Tufail, and other business leaders including Khalid Tawab, Hanif Gohar, and Syed Mazhar Ali Nasir emphasised that the timing was right to focus on the pharmaceutical sector, given the government’s desire to attain economic stability.
“With a local market of 242 million consumers and over 700 pharmaceutical companies, Pakistan is well-positioned to capitalise on the global off-patent drugs market, projected to be worth $700 billion in branded generics and $381 billion in generics by 2026,” the statement read.
Currently, Pakistan’s pharmaceutical industry has performed well in specific markets. Countries like Uzbekistan, Nigeria, and Afghanistan are among those where pharmaceuticals rank as major export commodities.
Meanwhile, experts believe that a structured market development assistance (MDA) programme similar to India’s initiative could provide necessary support to local pharmaceutical companies.
They have advocated for a thorough assessment of local API production capabilities before imposing duties, arguing that such measures could ensure affordability and competitiveness of Pakistani pharmaceutical products.
The sector also faces challenges related to maintaining a stable supply chain and reliable raw material procurement, which are key to securing lasting agreements in foreign markets.
As observed, foreign markets typically demand long-term contracts of up to seven years, creating a need for predictability in supply chains and procurement strategies.
Pakistan’s Citi Pharma, Martin Dow partner with Chinese firm for biotech manufacturing
With the government exploring avenues to generate foreign exchange and reduce dependency on debt, focusing on non-debt creating exports is critical.
Analysts point out that despite significant rupee depreciation over recent years, the anticipated growth in exports has not materialised, suggesting that new strategies are necessary to unlock Pakistan’s export potential.
Comments