Wednesday April 17, 2024

An industry in decline

January 24, 2019

The rupee devaluation has had a negative impact on the competitiveness of Pakistan’s pharmaceutical industry. The industry in Pakistan is local-market oriented due to significant barriers of entry to the export market. The devaluation makes pharma products less attractive to foreign purchasers. There are stringent regulations being placed by DRAP in terms of pricing which are somewhat affecting the industry adversely.

Pharmaceutical companies cannot meet their expenses from the current pricing structure because of which they are bound to demand an increase in price. These companies also have to import specific active pharma ingredients in order to manufacture medicine. This means it costs more to produce a pill in rupees which leads to lower margins and competitiveness in the market due to devaluation. The decrease and slowing down on the competition, however, is beneficial to the public, and to an extent, to the pharma industry. Therefore, having a rate which is feasible for both the industry and public is a better option.

Mehr Aftab

Toronto, Canada