Pakistan is described as a ‘developing pharmaceutical market’. The country has a large population but its economic progress is not very impressive, at least not yet. There are many obstacles in its path emanating from bad management and corruption. In the last two years, the country’s economy has also been hit by Covid and this has put all prospects of growth in the doldrums.
In terms of per capita drug spending, the Pakistan economy shows poor progress. In the private sector, spending on drugs is better. Pharmaceutical spending accounts for less than 1% of the country’s GDP, compared to levels in some neighbouring countries. Marginal strengthening of the generics sector has come about but more in terms of volumes than values. The share of generic medicines is likely to increase further as major drugs come off-patent in the near term, to the likely benefit of the generics-dominated local industry.
The pharmaceuticals industry in Pakistan has the potential to be very vibrant and forward looking and a good export earner. At the time of independence in 1947, there was hardly any pharmaceuticals industry in the country. Today Pakistan has over 700 pharmaceutical manufacturing units, including those operated by multinationals. The local Industry meets around 70% of the country’s demand of medicines. The domestic pharmaceuticals market, in term of market share, is almost evenly divided between the nationals and the multinationals.
The national pharmaceuticals industry has shown progressive growth over the years, particularly over the last one decade. In 2020, the value of the pharmaceutical sector in Pakistan was estimated to be around $3.2 billion, more than doubling from $1.64 billion in 2011. The exports share has also expanded since the industry has invested substantially to upgrade itself in the last few years. The industry is following Good Manufacturing Practices (GMP), to meet domestic and international requirements. The industry has the capability to manufacture medicines, ranging from pills and syrups to sophisticated biotech, oncology and value added generic compounds.
Although Pakistan’s pharmaceutical and healthcare sectors are expanding and evolving rapidly, about half the population has no access to modern medicines. This presents great potential and opportunity but much more work needs to be done by the government and industry stakeholders.
The industry is relatively young in the international market but it has quality producers and many units are approved by regulatory authorities all over the world. Like the domestic market, sales in the international market have almost doubled during the last five years. It is heartening that the country’s pharmaceuticals industry is now focusing on an Export Vision to earn valuable foreign exchange. In the meantime, exports are also likely to be boosted by new regional and global opportunities.
As the government seeks to find a way to achieve long-term sustainable growth, the pharmaceutical industry can help Pakistan both in terms of exports and industrial progress. Exports from the pharmaceutical sector could achieve over $5 billion in just a few years as Pakistan emphasizes public healthcare.
It is accepted by experts that the pharmaceutical industry has the potential to change Pakistan's image. If it happens, this would be like the IT industry that changed the image of India and the garments industry that changed the image of Bangladesh. For this reason, Pakistan must seriously focus on the pharmaceutical sector and enable the government to attain economic stability during its tenure.
It is true that the global pharmaceutical market is in a flux due to major restructuring. This 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.
The industry is relatively young in the international market but it has quality producers and many units are approved by regulatory authorities all over the world.
Pakistan has a large domestic market of consumers. It is poised well to gain from opportunities provided under the changing global patterns of supply and demand.
It is strongly felt that Pakistan should acquire vaccine manufacturing capabilities. This can begin immediately since local firms have validated biologic production facilities and are willing to invest in the required standards. The government can provide long-term purchase/buy-back agreements for locally produced vaccines under a public private partnership.
It is also felt that Pakistan needs to improve its education standards if it is looking to move forward in the pharmaceutical sector, which is a science and technology-based industry. It is thought that the curriculum of pharmaceuticals and chemistry in Pakistan is very old and unfortunately, no government has really looked at it.
Experts also say that there should be an overhaul of the Drug Regulatory Authority of Pakistan (DRAP). They say that the regulatory environment in Pakistan is regressive and compromises on patient interest. In this regard, multiple stakeholders need to sit together and develop a policy that caters to industry growth as well as patient interest. To achieve this, a sectoral growth strategy and corresponding action plan is needed.
There are reports that DRAP is striving to help the pharmaceutical sector grow. It is said to be working to steer ease of doing business to support companies.
To help achieve goals set by Prime Minister Imran Khan, the regulatory authority has introduced a maximum automation system to ensure transparency and merit. After the Covid-19 outbreak, DRAP has increased its testing capacity substantially and is contributing in every way, such as availability of vaccines and raising awareness among the people.
There is also the view that the Pakistan pharmaceutical industry is already a success story and provides high quality essential drugs at affordable prices to millions. The industry is technologically strong and self-reliant and is playing a key role in promoting and sustaining development in the vital field of providing medicines to the common man. It is thus well-set to enter international markets. 
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