Pharmaceutical sector is one of the most developed hi-tech sectors in Pakistan The growth of the country's pharmaceutical industry has dropped from approximately 16 percent per annum to around eight percent per annum which is a cause of concern not only for the industry but government as well. There is a need of publicly funded R&D institution. Pakistan has to create an enabling infrastructure and linkage to facilitate Pharmaceutical Industry to improve process technique. It is needed to stimulate skill development of Human Resource in Pharmaceutical R&D and to enhance nation’s self-reliance in drugs and pharmaceuticals, especially in areas of national health requirements. Providing technical support to pharmaceutical companies for export is also necessary.

1. Presented by:
Bushra Aziz
Mamoona Zaeem
1

2. Pakistan has a very vibrant and forward looking Pharma
Industry. At the time of independence in 1947, there was
hardly any pharma industry in the country.
Today Pakistan has about 759 pharmaceutical
manufacturing units including those operated by 25
multinationals present in the country.
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3. • A pharmaceutical is any kind of drug used for medicinal
purposes, like cough syrup or sleeping pills.
• Pakistan Pharmaceutical industry is growing at a very fast rate
and contributing to the national economy.
• Pakistan has a very vibrant and forward looking Pharma
Industry.
• The Pakistan Pharmaceutical Industry meets around 70% of
the country's demand of Finished Medicine.
• The Pakistan pharma industry is relatively young in the
international markets with an export turnover of over US$
100 Million as of 2007.
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4. • The global pharmaceutical market is valued at not less than
440 billion US dollar with 60% annual growth by World Trade
Organization (WTO).
• Global pharmaceutical market is assessed to be more than
double in value up to l trillion US dollar by 2020.
• 47% market of pharmaceutical business revolves around
North America which is more than 206.8 billion dollar.
4

5. • Pakistan Pharmaceutical market is very competitive and
challenging.
• About 600 Pharmaceutical companies are operating in
Pakistan & out of these companies 386 are operating units.
• The population of Pakistan is not more than 2.7%o of the total
population of the world with 1.5 billion US dollar market size.
• The gross national income per person (GNP) of Pakistan is
much less than 5000 US dollar per year as per report of World
Bank (2002).
• World Health Organization in its study. ”World Medicine
Situation” reports, that Pakistanis are spending 71% of their
healthcare budgets on buying medicines.
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6. • The Pakistan pharmaceutical sector has been non-existent
before early seventies.
• The pharmaceutical industry is divided into two sections i.e.
private and public sector.
• In 1947 there were only three manufacturing units located at
Lahore, Rawalpindi and Peshawar.
• In the early years of independence the country’s
requirements were met exclusively through imports of
finished products.
• Currently Pakistan has more than 800 large volume
pharmaceutical formulation units and operated by 25
multinationals present in the country.
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7. 7

8. • According to Pakistan’s pharmaceutical and healthcare survey
pharmaceutical industry contributes $1.6 billion towards GDP.
• Due to its significant contribution towards GDP, government
has put significant effort towards pharmaceutical industry
development.
• As a result of which Pakistan is the 8th largest pharmaceutical
manufacturing industry in world.
• With 40 biotechnology companies, involved in development
and manufacturing of various drugs. Pharmaceutical sector is
one of the most developed hi-tech sectors in Pakistan.
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9. • According to Pakistan Pharmaceutical Manufacturers
Association (PPMA):
• Today Pakistan has about 759 pharmaceutical manufacturing
units.
• Including those operated by 25 multinationals present in the
country.
• The Pakistan Pharmaceutical Industry meets around 70% of
the country’s demand of Finished Medicine.
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10. 1. Glaxo Smith Kline
2. Abbot+Knoll
3. Pfizer
4. Aventis
5. Novartis
6. Merck Marker
7. Searle
8. Wyeth
9. Roche
10. Bristol Myers Squibb
11. Hilton
12. Sami
13. Ali Gohar(AG&C)
14. Merck Sharp Dohme
15. Nestle
16. Warrick
17. Wilson
18. Getz
19. High noon
20. Barret Hodgson
21. ICI
22. Reckitt Benkiser
23. Platinum
24. Macter
25. Janssen
26. Eli Lilly
27. Schering AG
28. CCL
29. Bosch
30. Himont
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11. Direct
• Self-Reliance.
• Foreign exchange saving.
• Employment generation.
• Employment for Females.
• Skill Up gradation.
Indirect
• Indirect employment.
• Investment.
• Skill Acquisition.
• Technology Spillovers.
• Brain Drain Reversal.
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12. • The growth of the country's pharmaceutical industry has
dropped from approximately 16 % to 8% per annum which
is a cause of concern.
• Industry sought a predictable and transparent regulatory
environment with a proper system for registration of drugs.
• The pharmaceutical industry in Pakistan is subject to the
most stringent regulatory control, in particular price
controls.
• This is the reason companies are leaving Pakistani market
as 10 years ago there were 36 MNCs operating in Pakistan
and today there are just 24! 12

13. • Power shortage.
• Lack of trained manpower.
• Difficulty in export.
• Lack of new technology.
• Changing political and economic policies.
• Bad law and order situation resulting in lower investment.
• Higher interest rate.
• Terrorism which reflects foreign investors.
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14. Manufacturing sector is the second largest sector of the economy
accounting for 13.6 percent of Gross Domestic Product (GDP).
14
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% % % % % % % % % % % % % % %
4 12.9 20.0 30.7 0.9 7.39 0.5 10.89 16.35 -0.49 6.38 7.21 8.74 9.44 -8.67

15. 15
-15
-10
-5
0
5
10
15
20
25
30
35
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Year wise growth of Large Scale Manufacturing (LSM), Pharmaceuticals
in %:
Source: Pakistan Economic survey

16. • Pakistan Pharmaceutical industry is growing at a steady rate.
• The first major challenge which the Pharma Industry faces is
the total government control on the prices.
• Import of raw material which costs a lot of precious foreign
exchange.
• Rapid devaluation of the rupee against the major currencies,
due to which the profit margins are shrinking.
• Increasing cost of manpower and energy.
• Political instability is another major factor which is emerging
as the major challenge to the pharma Industry.
• Market access is challenging and operational risks are high.
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17. • Synergies the strength of Pakistan Pharmaceutical Industry
and Publicly funded R&D institution.
• Create an enabling infrastructure and linkage to facilitate
Pharmaceutical Industry to improve process technique.
• Stimulate skill development of Human Resource in
Pharmaceutical R&D.
• Enhance nation’s self-reliance in drugs and pharmaceuticals,
especially in areas of national health requirements.
• Provide technical support to pharmaceutical companies for
export.
17

18. Pharmaceutical sector is one of the most developed hi-tech sectors in
Pakistan The growth of the country's pharmaceutical industry has dropped
from approximately 16% to 8% per annum which is a cause of concern not
only for the industry but government as well. There is a need of publicly
funded R&D institution. Pakistan has to create an enabling infrastructure
and linkage to facilitate Pharmaceutical Industry to improve process
technique. It is needed to stimulate skill development of Human Resource
in Pharmaceutical R&D and to enhance nation’s self-reliance in drugs and
pharmaceuticals, especially in areas of national health requirements.
Providing technical support to pharmaceutical companies for export is also
necessary.
18