aspx Pakistan Pharmaceutical Manufacturers Association Pakistan has a very vibrant and forward looking Pharma Industry. At the time of independence in 1947, there was hardly any pharma industry in the country. Today Pakistan has about 400 pharmaceutical manufacturing units including those operated by 25 multinationals present in the country. The Pakistan Pharmaceutical Industry meets around 70% of the country's demand of Finished Medicine. The domestic pharma market, in term of share market is almost evenly divided between the Nationals and the Multinationals.

The National pharma industry has shown a progressive growth over the years, particularly over the last one decade. The industry has invested substantially to upgrade itself in the last few years and today the majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. Currently the industry has the capacity to manufacture a variety of product ranging from simple pills 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. Clearly this presents an opportunity, but much more work needs to be done by the government and industry's stakeholders. The value of pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to per capita consumption of less than US$ 10 per year and value of medicines sold is expected to exceed US$2.3 B by 2012. Pakistan is a developing pharmaceutical market, with a large population and economic progress evident, but per capita drug spending was rather low at around US$9.30 in 2007. Private spending accounts for 65% of total healthcare expenditure sourced through out-of pocket payments, international aid and religious or charitable institutions. Pharmaceutical spending accounts for less than 1% of the country's GDP, comparable to levels in some neighboring countries but above that in some of the South Asian countries. The forecast period is likely to witness the marginal strengthening of the generics sector, albeit more in terms of volumes than values. The share of generics is also likely to increase further as major drugs come off-patent in the near term, to the likely benefit of the generics-dominated local industry. The Pakistan pharma industry is relatively young in the international markets with an export turnover of over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of quality producers and many units are approved by regulatory authorities all over the world. Like domestic market the sales in international market have gone almost double during last five years. The pharma industry is focusing to an Export Vision of USD 500 Million by 2013. In the meantime, exports are also likely to be boosted by new regional and global opportunities. The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at affordable prices to Millions. Technologically, strong and self reliant National Pharmaceutical Industry is not only playing a key role in promoting and sustaining development in the vital field of medicine within the country, but is also well set to take on the international markets.

total expenditure on health has increased from PKR 4. alkaloids.000 doctors practicing. 5301 Basic Health Units (BHU). Despite high competition and price wars. Anti-cancer.04 billion. Vaccines.0 billion. 4582 dispensaries.9% per annum. etc. The 600 firms (over 400 domestic manufacturers and approximately 200 major importers together ) produce 40. ointments. Analgesics.86% higher than the last year. Many of the manufacturing units are ISO certified adhering to UK and US Pharmacopoeia.38. Having no recourse to a single price increase since December 2001. September 13. Amino Acids. according to a study by Frost & Sullivan Linkages Backward Linkages Active Pharmaceutical Ingredients (API s) (Alkaloids. Anti-hypertensive. Only 2 manufactures are involved in the manufacture of raw materials. cough syrups. 906 Maternity and Child Health Centers (MCH) and 289 Tuberculosis Centers (TBC). the pharmaceutical sector will be under pressure to maintain its profitability in the face of inflationary pressures and currency devaluation The total outlay on the health sector is budgeted at Rs. 113. Contraceptives and birth control drugs.( as of 2006) Category of local production Market potential of Pakistan is good for Antibiotics. (Thursday. while the top 100 companies have 94.260 hospitals. The existing network of medical services consists of 12.8 percent over last year. Hormones. antiallergic. etc) .http://www. 2007 The pharmaceutical market comprises of large Multinational Companies which are producing and marketing research based products and also other big and small National companies which pre dominantly produce and market generic products. Peptides. 552 Rural Health Centers (RHC). Out of total market of US$ 2 billion. Tranquilizers Hormones. which has increased by 15. Anti-ulcer ants. which is 31. Pharmaceutical industry of Pakistan is around US$ 2 billion with an annual growth rate of 12.shvoong. Psychiatric.3% is captured by Multinationals and 46. drug prices are controlled by a strict regulatory policy.37 billion to PKR 6. The top 50 companies enjoy more than 80% market share. Antibiotics. Cardiovascular. There are 20 multinationals in the top 50 companies. There are close to 125 categories of medicines produced locally including all kind of vitamins.0% market share.000-odd formulations in the country.7% is taken up by National companies.

500 new drugs have been registered Although it registered a fairly robust growth during 2006-07. Imports/Exports Nearly 95% ( Approx $ 450 million) of the basic raw material used for manufacturing is imported from countries like China.8 percent in 2006 over last year. . which increased by 15. According to statistics by Ministry of Health 41.2 Billion in the next for years. Germany and others.9% per annum ($ 2 billion ) and showing a positive trend hence attracting local and foreign investment in Pakistan. 2. Role of Government The total outlay on the health sector is budgeted at Rs.2% of the Pakistani population cannot afford procuring medicines due to high prices in the country. Government of Pakistan had invested Rs. If the industry maintains this growth rate. The main reason behind this is that most of the basic pharmaceutical raw materials are imported. the total market in Pakistan remains small in relation to our population size. In Pakistan the Ministry of Industries decides about the drug pricing. India.89 billion and growing at 12. The government has set up an independent Drug Registration and Pricing Authority. Since 1999 . Pharmaceutical industry in Pakistan is at PKR 70.8 billion in the pharmaceutical industry since 1999 to guarantee good quality drugs at competitive prices. it is projected to reach 2. Japan. UK.Forward Linkages Glass bottles Plastics Paper Printing Packaging Engineering Pricing Prices of many pharmaceutical products are much higher in Pakistan as compared to India. Growth Total population of Pakistan is approximately 161 million (2006 statistics) and the population growth rate is 2%.38. Pakistan Pharmaceutical Manufacturers Association (PPMA) and Health Ministry to keep check on the quality of drugs available in the market.0 billion. Pakistan Health Ministry is considering to constitute a committee comprising of the World Health Organization (WHO).

In the biotechnology sector. Some major public sector programs have been initiated to address the healthcare needs of the population. The move is being taken in the field of medicine by the private sector in collaboration with investors The plant would start production within the next few years. Germany. Federal Government is working on the important subject of DRA and will make sure that it accommodates the expectations and objectives of the local pharmaceutical industry without compromising on good standards The government has also formed a policy recently allowing companies to produce raw materials locally. It is planning to set up biotechnology plant worth Rs. While substantial increases in public sector spending have been witnessed in recent years. These include: y y y y y y y y The National Program for Family Planning and Primary Health Care The Expanded Immunization Program National Program for Hepatitis Prevention and Control National Tuberculosis Control Program National Malaria control Program National HIV/AIDS Control Program Women's Health Program Tariff protection is generally allowed to encourage local manufacture of APIs. Pakistan has initiated many programs. UK and Japan for raw material imports. Companies in Pakistan rely heavily on China. Several countries have expressed keen interest to invest in Pakistan due to the pro-active policies of the government.400 million to meet the growing needs of quality medicines in the country. The Ministry of Commerce has given 50% subsidy to pharmaceutical companies for registration of their exported products in foreign countries for export from 1998 to 2003 . India.

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