Professional Documents
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1. Introduction
Last few years of the Pakistan economy; have
suffered a lot due to bad economic conditions and also
due to the war against terrorism. Further more the
economy also saw the domestic inflation, slow
economic growth and substantial devaluation of the
rupee against the major currencies. No doubt that the
government is taking the necessary steps to come out
of this worst situation, but it lacks the urgency and
also across the board adjustments for the uplift of the
economy.
Before the overview of the Pakistan Pharmaceutical
market, let us see the situation on the global basis.
The whole global Pharmaceutical market is valued at
650 billion US$ (2008-09), with an annual growth
rate of 8% and continuing with the rate it will cross
the value of 1.1 trillion US$ by 2014. . On the basis of
value the global market is governed by USA, EU and
Japan with a share of 48%, 28% and 12%,
respectively. The rest of the world has only 20% of
the total world Pharmaceutical market.
Looking at the Pakistan Pharmaceutical market, it is
very competitive and challenging. About 600
Pharmaceutical companies are operating in Pakistan.
Out of these companies 386 are operating units. As
reviewed earlier inflation and devaluation have a very
drastic impact on the operating margins. This may
600
Number of employees
Over 100,000
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Int. Jour. of Business & Inf. Tech.
R&D Expenditure
Registered Drugs
47000
Registered Molecules
1100
Almost all
Market size
Source: www.osec.ch
2. Pakistan Pharmaceutical
Present and Future
Market:
3. Opportunities
Among all the therapeutic groups, two groups
namely alimentary tract and metabolism, and systemic
anti-infective lead the market with shares of 20.28%
and 24.7%, respectively. Excluding theses two
groups, all the other segments are not contributing in
double digits. No doubt that these segments have got
extreme importance in the pharmaceutical sector, but
either these segments are neglected or these segments
are not beneficial for the companies financially. But
by looking at the current situation, the number of
hypertensive patients is increasing at an alarming
ratio, along with the emergence of new diseases.
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Int. Jour. of Business & Inf. Tech.
4. Current Situation
Currently due to the drug act of Government of
Pakistan, 4-types of Drug Manufacturing Licenses are
issued:
1. Formulation
2. Basic manufacturing.
3. Semi-basic manufacturing
4. Repacking
According to the Population Census Organization
of Pakistan (2010), Pakistan has a population of 16.98
million, with a growth rate of 2.69. Besides this health
awareness is also increasing day-by-day, which may
be helpful in increasing the per capita expenditure in
the future.
4.1. Challenges to the Pharmaceutical Industry
No doubt that the Pakistan pharmaceutical market
is growing at a steady rate but there are certain
challenges which pose a great threat to the industry.
The first major challenge which the
pharmaceutical industry faces is the total
government control on the prices of all the
enlisted products
Import of raw material which costs a lot of
precious foreign exchange
Rapid devaluation of the rupee against the
major currencies, due to which the profit
margins are shrinking
Increasing cost of manpower and energy
Low R&D expenditure, which can lead to the
suffering of the masses for not conducting
sufficient research on the newly emerging
diseases in the Pakistani environment
2.
3.
4.
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Int. Jour. of Business & Inf. Tech.
2.
3.
5.4. The
Strategy
Right
Pharmaceutical
Marketing
References
1. http://www.reportbuyer.com/pharma_healthcare/co
untry_reports_pharmaceutical/pakistan_pharmaceut
icals_healthcare_report_q3.html
2. www.osec.ch
3. Pakistan Economic Survey 2007-08
4. The Pharmaceutical Market: USA Opportunities
and
Challenges.
https://www.espicom.com/Product.nsf/Search/0000
0087?OpenDocument
5. The
Pharmaceutical
Market
http://www.vfa.de/en/statistics/pharmaceuticalmark
et
6. Indian
Pharmaceutical
Industry,
http://www.pharmaceutical-drugmanufacturers.com/pharmaceutical-industry/
7. Pakistan Pharmaceuticals and Healthcare Report Q2
2010,
http://www.reportbuyer.com/pharma_healthcare/co
untry_reports_pharmaceutical/pakistan_pharmaceut
icals_healthcare_report_q2_2010.html
8. Generic
Pharmaceutical
Association.
http://www.gphaonline.org/about-gpha/aboutgenerics/facts 2007
9. Population Clock. Population Census Organization.
Statistical Division, Ministry of Economic Affairs
and
Statistics.
Government
of
Pakistan.
http://www.statpak.pk/depts/pco . (24-10-2010)
Author Biographies
Mohammad Aamir, Lecturer and DC Management Sciences,
COMSATS Institute of Information Technology, Abbottabad,
Pakistan. His research interests include
Khalid Zaman, Assistant Professor, Management Sciences,
COMSATS Institute of Information Technology, Abbottabad,
Pakistan. He received his M.Phil economics degree from Allama
Iqbal Open University, Islamabad, Pakistan in February, 2008. His
research interests include time series econometrics, development
economics and macroeconomics.