Today, Pakistan`s pharmaceutical industry is in crisis, bogged down in over regulation and hampered by poor policy, it is unable to realize even a fraction of its huge potential. The manufacturing facilities of pharmaceutical companies in Pakistan are uncompetitive, underutilized and below the industry benchmark. In Pakistan, there is an urgent need to revisit the industry`s regulatory framework in order to unlock the potential of the local pharmaceutical manufacturing sector and gradually increasing access to global markets for locally manufactured goods.
The government must encourage contract manufacturing and allow companies to outsource manufacturing of drugs, particularly low-priced drugs which over the years have become unviable to produce due to price freezes.
Currently there are approximately 700 companies operating in Pakistan, with just 22 MNC’s accounting for 46% of the volume of the market share. Contract manufacturing could increase the role of local pharmaceuticals, create job opportunities, accelerate transfer of technology from MNC’s to local companies and enable MNC’s to utilize their facilities to produce newer drugs.
The benefits for contract manufacturing cannot be only viewed in economic terms for the firm or the country but will significantly improve the healthcare facilities for the general population. Outsourcing production would increase economies of scale, speed up processes, quality, and reduce initial start-up costs for companies to facilitate the further establishment of businesses.
Karachi being the industrial hub, contributes more than 70% of pharmaceutical output. By establishing a service sector for this industry, that strives to provide better assistance companies on both ends can help specialize. The economy of the country would increase manifold if the government facilitated contract manufacturing. Foreign investment of millions of dollars would flow in and like India Pakistan will be seen as an ideal location for contract manufacturing by MNC’s.
ABU BAKAR,
Karachi, June 13.
