Indian pharma firms taking over Pakistan’s share

Domestic players say govt’s policy is hurting them


Our Correspondent January 17, 2018
Domestic players say govt’s policy is hurting them. PHOTO: REUTERS

LAHORE: Pakistan’s pharmaceutical manufacturers are losing their export markets to the Indian industry and this lack of competitive advantage is blamed on the government’s indifference to the toll manufacturing arrangement.

The domestic industry has urged authorities to allow pharma companies to optimise production and bring down manufacturing costs by subcontracting drug manufacturing to other companies for at least 10 years.

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Under toll manufacturing, a third party, like national companies, often manufacture drugs for multinational firms, which is the most effective way to save costs without compromising on the quality of drugs, according to industry players.

Toll manufacturing has been a very critical factor in contributing to the gross domestic product, national income and job creation for thousands of people across the country.

According to the pharma industry, the Drug Regulatory Authority of Pakistan (Drap) is currently issuing licences for toll manufacturing for two years only and these are also required to be renewed every three months.

The practice had been adopted by Drap by violating its own, recently defined policies, which was creating hurdles in the way of companies’ functioning, it said, adding drug companies could not manufacture their products while waiting for the renewal of licences, which was a cumbersome and lengthy process.

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“This prevents the manufacturing companies from making long-term plans for investments and exports,” the industry said. “This way, Pakistani firms are losing to Indian players because restrictions on toll manufacturing prevent them from achieving lower costs.” 

Published in The Express Tribune, January 17th, 2018.

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COMMENTS (6)

M Z Khan | 6 years ago | Reply The author needs to provide statistical proof of loss of income by Pakistan based Pharamaceutical companies, rather than trying to combine a regulatory issue with a financial one
Rustam | 6 years ago | Reply DRAP view on the subject is required. Ignore, all the rubbishes from Indian trolls with fake names.
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