Some 12 multinational companies (MNCs) in the sector have entirely ceased their operations and exited Pakistan
KARACHI: This is with reference to the news about the increasing exit of multinational pharmaceutical companies from Pakistan. Within less than a decade, some 12 multinational companies (MNCs) in the sector have entirely ceased their operations and exited Pakistan, while the remaining 24 MNCs have reduced their manufacturing operations to a considerable level owing to inefficient capacity utilisation.
In statistical terms, the exit of the pharmaceutical company throws a huge investment down the drain and creates a gap of some $18 million in the medicinal market, while affecting more than 1,000 households directly in terms of unemployment, job insecurity and unused capacity.
In a complete contrast, the pharmaceutical industry of India is at its peak. Recently, it invited Japan’s pharmaceutical industry to locate their production units in India, which has become an ideal choice for multinational companies to set up their ventures, either wholly owned or in joint partnership with Indian companies.
Unfortunately, most of the manufacturing and production facilities in Pakistan are underused and have become noncompetitive in relation to the industry benchmark followed in the region. Being on the verge of total collapse, the pharmaceutical industry needs government support more than ever.
Syed Ovais Akhtar
Published in The Express Tribune, January 16th, 2017.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
