Pakistan’s Pharma Industry Poised for $5 Billion Export Boom: FPCCI’s UBG

Pakistan’s pharmaceutical industry is on the brink of a major breakthrough, with the potential to boost its medicine exports to $5 billion in the coming years, according to the United Business Group (UBG) of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

Pharma Industry’s Growth Potential

The sector, valued at $3.29 billion in the fiscal year 2023-24, currently exports medicines worth $341 million. Contributing over 1% to Pakistan’s GDP and saving approximately $2 billion annually through import substitution, the industry plays a crucial role in the country’s economic framework.

UBG leaders highlight that with the right policies, the pharmaceutical industry could become a significant contributor to Pakistan’s overall exports, helping to stabilize the economy and generate foreign exchange.

Key Policy Recommendations

To unlock this potential, UBG has urged the government to introduce:

• Incentives for pharmaceutical companies to encourage exports.
• Tariff rationalization to make Pakistani medicines more competitive in international markets.
• Trade-related investment initiatives to attract foreign partners.
• Institutional reforms to ensure ease of doing business.

Seizing Global Opportunities

UBG President Zubair Tufail, alongside business leaders Khalid Tawab, Hanif Gohar, and Syed Mazhar Ali Nasir, stressed that Pakistan is strategically positioned to tap into the global off-patent drugs market. With over 700 pharmaceutical companies catering to a domestic market of 242 million people, the country has a solid foundation to expand its presence in international markets.

The global off-patent drug market is projected to reach $700 billion for branded generics and $381 billion for generics by 2026. Pakistan’s pharmaceuticals are already making inroads into markets like Uzbekistan, Nigeria, and Afghanistan, signaling strong potential for further growth.

Addressing Challenges & Strengthening Infrastructure

While opportunities are abundant, industry experts highlight several challenges that must be addressed:

• Stable supply chains and raw material procurement to meet long-term export contracts.
• Improved local production of Active Pharmaceutical Ingredients (API) to reduce dependency on imports and keep costs competitive.
• Government-backed market development assistance (MDA) programs, similar to India’s initiatives, to support pharmaceutical exporters.

Strengthening Export Strategies

As Pakistan seeks non-debt-based solutions to improve its foreign exchange reserves, expanding the pharmaceutical export sector is a crucial step. Despite currency devaluation in recent years, expected export growth has not materialized, underscoring the need for strategic planning and investment in high-potential industries like pharmaceuticals.

By addressing regulatory hurdles and enhancing competitiveness, Pakistan’s pharma sector can solidify its standing in the global market and contribute to sustainable economic growth.

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