Govt urged to resolve issues of pharma industry

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) on Saturday urged the government to resolve key issues of pharmaceutical industry, as the sector has the potential to earn billions of dollars in foreign exchange for the country through exports."Despite decline in Pakistan’s exports during the last few years, exports of pharma industry have witnessed 26 percent growth, as pharma exports increased from over $169 billion in 2012/13 to $213 billion in 2016/17," said Sheikh Amir Waheed, president of ICCI, in a statement on Saturday.

If the government paid more attention to the pharma industry, it could fetch billions of dollars through exports, he added.

Waheed said that India’s pharmaceutical industry is earning over $16 billion annually, but Pakistan’s pharma industry’s exports could not touch $1 billion mark as yet despite the fact that this industry has a huge scope to grow and improve the country’s exports.

The pharma industry is importing 95 percent of raw materials, which is the main hurdle in its way of better growth, the ICCI president added.

He said the government should offer special incentives to investors in the coming budget for setting up industrial units and to produce pharmaceutical raw materials in the country that would go a long way in promoting exports of pharmaceutical products.

Waheed called for reduced duties and taxes on the import of pharma technology and machinery that would help upgrade this important industry.

The government should consider allowing

contract manufacturing to pharmaceutical companies that would give boost to foreign investment in the sector and promote exports, he added.

Several foreign companies have shown their interest to invest in the pharmaceutical industry, but the restrictions on contract manufacturing are the main hindrance in promoting FDI in this sector.

He emphasised the government should reconsider restrictions on contract manufacturing in the best interest of the country.

ICCI Senior Vice President Muhammad Naveed Malik said that allowing contract manufacturing would bring in new technology in the pharma industry and create more jobs.

The government should pay more attention to the industry to enable it to play more effective role in the economic development of the country, they added.