Govt allows export of hand sanitisers, protective equipment to fetch $1bln

ISLAMABAD: Pakistan has allowed export of personal protective equipment (PPEs) and hand sanitizers in order to fetch $1 billion over the next 12 months in the aftermath of the COVID-19 pandemic.

Advisor to Prime Minister on Commerce Razak Dawood on Tuesday said notification allowing export of PPEs and hand sanitiser has been issued.

“The government has done its part,” Dawood said in a tweet. “Exporters please take note and go full speed ahead to capture a good share of world market. This does not apply to Tyvek suits, N95 masks and surgical masks.”

Renowned business leader Almas Haider welcomed this decision and said Pakistan could fetch $500 million to $1 billion in exports in next 12 months. Pakistani businessmen built their capacity in last three months but the government took more time for allowing exports of PPEs and other items, he said. “But still there is huge potential and our exporters could fetch substantial export earnings.”

On domestic demand, Haider said only four to five companies possess international certification and more are applying for it but this business is not running like sugar or other sectors because it operates every day to meet the demands. “There is nothing to worry about fulfilling the domestic demands,” he said.

The federal cabinet granted permission on the insistence of ministry of commerce but the exporters have to wait for issuance of statutory regulatory order (SRO).

Till February 2020 most of the PPEs were imported from China. Wuhan was under lockdown and the pandemic was growing in China. Their industry took the challenge and grew exponentially to provide personal protective equipment to their medical personnel. They set up new hospitals within days to provide care for their patients.

USA and China relations are changing. The buyers in EU and USA are looking for alternate sources of supply so that their supply chains aren’t disrupted if this relation turns sour. Orders are pouring into other countries of Asia. Pakistan needs to use this window otherwise these orders will shift to India, Bangladesh, Cambodia, and Vietnam.

The Drug Regulatory Authority of Pakistan (DRAP) regulates PPE manufacturing. None of the companies that have started local manufacturing of PPEs are registered with DRAP. Under this urgent situation, most of the countries regulators, including Food and Drug Administration and European Union have relaxed these regulations till this emergency lasts. Provincial government of Punjab notified standards for PPEs, which may be adopted nationally and all other rules relaxed. Otherwise local manufacturing is at an imminent risk of closure.

As per Economic Survey of Pakistan 2018/19, the number of registered doctors stands at 220,829, registered nurses 108,474, registered dentists 22,595, registered midwives 40,272, registered lady health visitors 19,910 and total number of registered medical professionals 412,080. Assuming 1 mask per day is used by every medical professional at its peak, total requirement of masks stands at 124 million pieces per annum.

Assuming one gown per day is used by 50 percent medical professional at its peak, total requirement of gowns stands at 62 million pieces per annum. Assuming four face shield for 50 percent of medical professionals per month at its peak, total requirement of face shields stands at 10 million per annum.

Additional production of masks and gowns start soon as non-woven fabric manufacturers are expanding. Also our textile industry has a huge stitching capacity. Non-woven fabric can also be imported.