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Money Matters

Life at risk

By  Asif Khan Turk
21 November, 2016

PHARMACEUTICALS

It is a matter of great concern that there is no proper system for the production of pharmaceutical raw materials in Pakistan, and our industrialists import them from other countries. This dependence on others can lead us to a serious crises if an unfortunate situation arises that creates a trust deficit. The flow of raw materials will stop in that case, inflicting losses to this integral sector.

The Kuwait-Iraq war (1991) is a good example, when Iraq’s opponents stopped both imports and exports with the country, it blocked the flow of the much needed raw materials for the pharmaceutical industries and they had to shut down production for a long time, which caused scarcity of medicines. As a result, at least 200,000 to 300,000 children, afflicted with various diseases, died in Iraq.

To be self-sufficient in pharmaceutics and to have no deficiency of medicines under any circumstance, production of pharmaceutical raw materials locally is very important and a necessity.

Developed countries like the United States, United Kingdom, Germany, and Italy, play a front line role in this regard. The main reason of their success is their self-reliance when it comes to pharmaceutical raw materials. The pharma sector in these countries has achieved the status of a full-fledged industry.

Access to modern and advanced technology, availability of enough energy resources, normal taxes, national stability, peace, and good relations between the industry and academia are some of the key factors behind their success.

Other countries that are also playing an important role in the pharma industry globally are, India, South Korea, and Taiwan.

In Pakistan, there are many national and multinational industries producing standard medicines. But, the production of pharmaceutical raw materials is almost zero, which is why we have to import a majority of the much needed materials for manufacturing. To pay the price of imported raw materials, a great amount of capital goes out of the country that negatively affects our economy.

An internationally renowned pharmacist and Meritorious Professor at University of Peshawar, Dr Zafar Iqbal (TI) said, “A couple of industries are manufacturing some of the drug raw materials using basic methods. Such industries must also be encouraged for basic manufacturing.”

Since Pakistan mostly depends on other countries for raw materials, encouraging the few locals who work on producing pharmaceutical raw materials must be the government’s focus. However, to do so the government needs to put the house in order.

Energy shortfall is one of the major reasons behind the manufacturing laggard. Since the power supply is neither sufficient, nor consistent, industries find it difficult to operate regularly. Higher taxes combined with the poor economy further make it difficult for the pharma industries to stay viable.

On top of that, the available technology is not up to mark. We do not have the machinery and technology to extract and prepare pharmaceutical raw materials from petroleum on larger scale. Similarly, our technology is not able to extract medicinal ingredients from herbs.

“Pakistan needs a naphtha cracker that will not only provide the basic molecules for manufacturing drug molecules, but will also boost the chemical industries,” Dr Iqbal said.

The technology, through which pharmaceutical raw material can be produced from petroleum, is better than the technology by which medicinal ingredients can be extracted from herbs. This petroleum-based technology, called naphtha cracker, enables to extract basic organic molecules from petroleum. These molecules are used as raw materials for medicines, and can also be used in the production of paints and fertilizers, etc.

The technology is expensive and since India and China are providing cheaper pharmaceutical raw material to Pakistan, the government has not really focused on becoming self sufficient in this sector.

A well-known pharmacist and general secretary of the Pakistan Pharmacists Association-KP Chapter Dr Ihsan Ullah said, “For the development of our health sector, laying the foundations of the industry for pharmaceutical raw materials is very important. Purchasing the technology which is out of the range of small or medium investors or even the big investors is not the solution.”

The government should make a planning commission and take government envoys, investors, industrialists, and technical persons on board to find a solution. Developing a strong strategy is the need of the hour.

“The government can bring local investors on board to invest in the costly technology which will benefit the pharma industry in the long run. There is also an option to bring in foreign investors, but for that a suitable environment is necessary, where there is no load shedding or extravagantly high taxes and a negative law and order situation,” Dr Ihsan Ullah said.

The government also needs to strengthen the link between the parhma industry and academia. Exempting the research centres and universities from load-shedding and providing them with enough funds and latest technology can be one of the much needed government supports to help this life saving sector flourish.

Pakistan ranks at the 138th positive in the World Bank’s cost of doing business rankings. A pharmaceutical sector, dependent on locally produced raw materials will incur lower expenditure and hence the cost of manufacturing medicines will be lower. This will also make drugs more affordable for the poor in the country.

As a result, the budget of the health department, which allocates millions of rupees in funds to provide free-medicines to the public, will decrease. Surplus raw material can also help earn the much needed foreign exchange.

The writer works for Daily Jang in Peshawar