KARACHI, PAKISTAN:
Pharmaceutical companies are the backbone of a country. Besides gathering profits, they fulfil the need for effective and disease-curing medicines. In the last few years, Pakistan’s pharmaceutical industry has been faltering. The country used to have approximately 36 multi-national pharmaceutical companies, but only 22 are currently operating. Pharmaceutical giant ‘Bayer’ is the latest to leave Pakistan.
Now that their manufacturing facilities have closed down, Pakistan will be required to import essential medicines at higher prices. The closure of these pharmaceutical giants will have several other repercussions including a decrease in growth, loss of investment and jobs, etc. Many of these companies ceased operations due to the worsening economic crisis in the country. Government control over pharmaceutical pricing has discouraged competition. Importing raw materials has raised challenges for companies amid import bans and depreciating currency. Political uncertainty and frequent regime changes result in a discontinuation of policies that affect the production process and hamper overall progress. A lack of government support and the absence of collective funds means there are few research opportunities on emerging diseases and developing new medicines.
Many companies saw a decline in sales and struggled with outreach in different regions because of the deteriorating law and order situation in the country. Market access is challenging and operational risks are high. The relevant stakeholders must pay attention to this emerging issue and form a comprehensive strategy to tackle it. A properly functioning pharmaceutical industry not only decreases government expenditure on public health but can reduce reliance on exports as well as boost economic growth. Perhaps, the relevant authorities should work on increasing collaboration between the healthcare sector and the pharmaceutical industry to bolster research and innovation.
Maheen Asad
Karachi
Published in The Express Tribune, October 28th, 2023.
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