Govt eyes $5bln/year pharma exports by 2025: adviser

ISLAMABAD: The government is striving to raise annual pharmaceutical exports to $5 billion in next four year by extending incentives as well as ensuring ease of doing business for the industry, commerce adviser said on Wednesday.

“The government is especially focusing to increase pharmaceutical exports through tariff rationalisation, trade-related investment, institutional reforms, and easing of business regulations,” said Abdul Razak Dawood Commerce & Investment Adviser addressing 1st Pharma Export Summit and Awards-2021 (PESA).

The event was organised by Pakistan Pharmaceutical Manufacturers’ Association (PPMA). Dawood said the government had set an export target of $38 billion for the current fiscal year in consultations with the relevant stakeholders.

The adviser said he was confident that industries and farmers would play their part in achieving the export target.

“More tariff rationalisation will be done in the next budget in order to facilitate different industries including the farmers,” he added. Dawood said the “made in Pakistan” marketing drive by the Ministry of Commerce was desinged to promote Pakistani products in new markets, which would greatly help increase the volume of pharmaceutical sector exports.

He said Prime Minister Imran Khan would meet PPMA leadership on Thursday (today) wherein all matters pertaining to the pharmaceutical sector would be discussed.

He said the government was committed to provide an environment that was conducive to all the segments of the economy and would leave no stone unturned in removing the obstacles hindering pharmaceutical sector’s growth.

He said that the exports were the engine of economic development.

Dawood also suggested the pricing of drugs and other medical instruments should be taken away from the health ministry, adding that the ministry should also not deal with the commercial activities.

He said he had requested the PM that Federal Board of Revenue should have nothing to do with the setting of tariffs for the industry as now the commerce ministry was dealing with them.

“In tariff rationalisation, Finance Minister Shaukat Tareen has greatly helped the commerce ministry,” he said adding that the government would further rationalise the tariff in the next budget for industry as well as for farmers.

Khalid Mansoor, Special Assistant to the Prime Minister (SPAM) on China-Pakistan Economic Corridor (CPEC), said CPEC was all about industrial revolution in the country.

“Under CPEC so far $13 billion projects mainly power, infrastructure development, and Gwadar port have been completed, while $12 billion projects under CPEC are in the pipeline, which mostly cover industrial development and others.”

Mansoor said CPEC was now entering phase-II, which would focus on industrial cooperation between China and Pakistan. In this phase of the CPEC special economic zones would be completed, which would help grow overall economy.

The SAPM said that pharmaceutical industry should took the advantage of the special economic zones.

Kaiser Waheed, Chairman Pesa, said some years back the government was not even considering the sector as an industry; however over the past 20 years the local industry started growing now they have 70 percent market share.

In 2000 the country was exporting just $9 million pharmaceutical products but now exports have crossed $250 million mark, Waheed added.

Tauqeer-ul-Haq, Chiarman PPMA, said in 2020 the pharmaceutical industry was valued at around $3.2 billion, which, ten years ago, in 2011 was at around $1.64 billion.

“The industry can expand to $5 billion within next few years.” Haq said this industry had recorded a 24 percent growth in first quarter of the current fiscal year as it exported products worth over $68 million.