Benefiting from Chinese pharma innovation

Pakistan has set an overall merchandise export target of $32.9 billion for FY27. However, it risks repeating last year's missed targets if the government fails to promote export-led industries. Highlighting this need, a recent report by SMEDA identifies five high-potential, export-oriented sectors: Pharmaceuticals, Information Technology, Food Processing, Surgical Instruments, and Leather.

Pharmaceutical is one of the non-conventional sectors that has started to play a vital role in Pakistan's economy by ensuring healthcare security, supporting industrial development, creating employment opportunities, and contributing to exports.

With rising global demand for quality medicines, vaccines, and biotechnology products, the industry possesses significant potential to become a major contributor to Pakistan's economic growth. Stronger collaboration with Chinese pharmaceutical companies can help Pakistan enhance its technological capabilities, expand exports, and strengthen healthcare security.

Despite its growing importance, the industry continues to face several challenges. One of the major concerns is Pakistan's heavy dependence on imported APIs, pharmaceutical raw materials, laboratory chemicals, and specialised manufacturing equipment. This reliance increases production costs, affects supply chain stability, and exposes local manufacturers to fluctuations in international markets. In addition, limited investment in R&D, outdated manufacturing technologies, and evolving international regulatory requirements continue to restrict the industry's competitiveness in global markets. Furthermore, inadequate collaboration between academia and industry, insufficient technology transfer, and the shortage of highly skilled technical professionals have slowed innovation within the pharmaceutical sector.

Addressing these challenges requires a comprehensive strategy that focuses on technological advancement, industrial modernisation, and international collaboration. There is a growing need to strengthen Pakistan's pharmaceutical manufacturing base and reduce import bill of pharmaceutical products which is up to about $1.4 billion per year.

China has successfully developed one of the world's largest pharmaceutical industries through continuous investment in innovation, biotechnology, vaccine development, research, and advanced manufacturing. Pakistan can benefit greatly from China's experience in developing a modern pharmaceutical ecosystem. Closer cooperation with Chinese pharma firms would provide Pakistani manufacturers with access to advanced technologies, investment opportunities, research collaboration, and international best practices that can significantly improve the industry's competitiveness. A CPEC-like cooperation in the pharmaceutical sector can drive growth through joint ventures, technology transfer, collaborative research, and industrial partnerships. Such collaboration can support local manufacturing of APIs, vaccines, biological products, and high-value pharmaceutical formulations while reducing reliance on imports. Pakistani pharmaceutical companies can also benefit from China's expertise in automation, quality assurance, biotechnology, and modern manufacturing practices to produce medicines that meet international standards. There is a dire need of establishing a Pakistan-China Pharma Portal to strengthen cooperation between the pharmaceutical industries of both countries.

The proposed platform would facilitate business networking, technology transfer, investment opportunities, regulatory coordination, research collaboration, market intelligence, and partnerships among pharmaceutical manufacturers, biotechnology firms, vaccine producers, research institutions, investors, healthcare professionals, and regulatory authorities. The portal would serve as a dedicated gateway for expanding bilateral pharmaceutical trade and encouraging innovation-driven cooperation.

Strategic cooperation with China can unlock Pakistan's export potential by bringing advanced technology, investment, and scientific expertise. Enhancing industrial partnerships under CPEC will build a globally competitive pharmaceutical industry to meet both export targets and domestic healthcare needs.