ZAFA Pharmaceutical faces several challenges in Pakistan's political, economic, social, and technological environment: Politically, price pressures and supply issues due to strikes increase costs and hurt availability. Economically, high taxes, duties, and inflation make it difficult to determine pricing and introduce new drugs. Socially, diseases are growing rapidly but poverty prevents affordable access to needed medications. Technologically, innovation is restricted by regulations and litigation while infrastructure investment is hindered by the economic climate and power outages.

1. PEST Analysis
“ZAFA Pharmaceutical”
(www.zafa.com.pk)
Group Members:
 Fahad-Ur-Rehman Khan (1496)
 Humais Zakai
 Junaid Mughal
Submitted To:
 Saima Akber Ahmed

2. Political:
The most common problem a pharmaceutical company faces is the Price Pressure
that rustled in increasing prices of “Medical Drugs” which somehow creates an
inflationary impact on our society and on our organizing as well. Due to the strikes
in our city (Karachi) mostof the organizational work stuck which puts ZAFA in to a
dire situation While, Customer wants Medical Drugs at low costs which becomes
impossibleto them.
On the other hand, ZAFA faces a problem of Raw Material supply on time because
of uncertain conditions which we faces every day in Karachimakes their way to
producemore Drugs cutin manufacturing in huge amountwhich somehow
creating rigidity in availability in drug availability all over the Pakistan and outside
of Pakistan.
Economic:
Now a days, Pakistan is facing a huge amountof inflation where Taxes are high.
Excise Duty (State & Central), Custom Duty, ServiceTax, Profession Tax, License
Fees, Royalty, Pollution Clearance Tax, Hazardous substance(Storage& Handling)
license, income tax, Stamp Duty and a host of other levies and charges have to be
paid. On an average it amounts to no less than 40-45% of the costs. So, it’s really
hard to determine that whether, Tomorrow, ZAFA uses the samepolicies rules
and regulations or not.
ZAFA want to work on latest DRUGS which haven’tintroduced in Pakistan but
unfortunately there are some economic factors which are lacking as described
above that makes a huge hindrance in the path or learning and growing up in
ZAFA. Economic factors affects a lot on an organization but when it comes to
pharmacy it needs innovation every day and economy should be growing to
producehuge amount of less cost drugs for facilitating every single person living
in our society.

3. Social:
There is also the problem of the increasing obesity amongstthe population and its
associated health risks. Now a days, Poverty is the biggestproblem we are facing
and the high cost drugs arekilling them and ZAFA cannot cut their prices just
because of the Economic and Political factors they are facing. Moreover, The
growing diseases wehave in our society which are gowning so fastare TB, Dengue
and Heart Attack which needs high medication which can be fulfilled by huge
amount of money. Patients and home careers are becoming moreinformed. Their
expectations have changed and they have become more demanding. Fulfilling
their demand is the firstjob for them.
The drugs needed them to produceneeded high amount of raw material and
economic stability to cut down their prices so that it can be provided to every
single person living in our society.
Technological:
Innovation is the first step on the stars of success. Industry has many regulatory
and legislative restrictions. There is also a growing cultureof litigation in many
countries. The evolution of the internet is also stretching the legislative
boundaries with patient’s demanding more rights in their healthcare
programmers’. ZAFA has to upgradetheir bio-tech infrastructureby investing in
bio technological structurebut no one wants to invest becauseof recession and
inflation.
While, Other competitors which mostly European are getting it very easily but in
Pakistan ZAFA faces a huge problemin investing in technology and the other
factor we face here is load shedding which makes technological factor nothing but
a piece of iron. So, not justinvesting but electricity failure in technological part.