Pakistan’s Pharmaceutical Sector Faces Challenges Despite Plans for Economic Zone

Despite the country’s ambitious plans to establish a Pharmaceutical Economic Zone, Pakistan’s pharmaceutical industry is expected to grow at a slower pace compared to its neighboring South Asian markets. According to a report by BMI, the sector is projected to reach $1.9 billion by 2028, with a modest compound annual growth rate (CAGR) of 1.1% in US dollar terms.

The Pharmaceutical Economic Zone, announced by Pakistan’s Ministry of Health, is part of initiatives under the China-Pakistan Economic Corridor (CPEC) and the Special Investment Facilitation Council (SIFC), aiming to attract foreign investment and improve the market’s potential. However, the sector continues to face significant challenges due to the country’s difficult operating environment.

A key issue is Pakistan’s heavy reliance on imports, with 90% of its medicines sourced from abroad, indicating a severely underdeveloped domestic pharmaceutical industry. The country also lacks the necessary infrastructure and trained workforce to build a self-sufficient industry in the short to medium term.

BMI emphasizes that while the establishment of the Economic Zone is a positive step, more substantial policy reforms are essential to create a business environment that fosters private sector growth and encourages innovation. The report states that Pakistan still needs to implement comprehensive reforms to stimulate competition and drive long-term growth in the pharmaceutical market.