Regulatory woes force foreign pharmas to leave Pakistan 

KARACHI: Out of the 30 foreign pharmaceutical companies once having manufacturing units in Pakistan, just four are now continuing with such operations, mainly because of regulatory hurdles and government’s taxation and pricing policies etc.

These concerning issues were raised by Ayesha T. Haq, Executive Director of Pharma Bureau, during a recent media briefing.

Ms Haq pointed out that regulatory hurdles, including inconsistencies in the DRAP Act 2012, Drugs Act 1976, and Drug Pricing Policy 2018, pose major obstacles for foreign pharmaceutical companies operating in Pakistan.

She said these challenges have eroded investor confidence, resulting in a sharp decline in local manufacturing by multinational companies (MNCs).

"The stringent regulatory framework, coupled with an unfavorable tax regime and economic instability, has made it increasingly difficult for multinational pharmaceutical companies to sustain operations in Pakistan," Ms Haq explained.

She noted that pricing controls on essential drugs have further strained profitability, discouraging investment and innovation in the sector.

Haq underscored the urgent need for policy reforms to address pricing anomalies, taxation issues, and regulatory complexities that deter foreign investment.

Haq suggested that adopting more flexible pricing policies, similar to those in neighboring countries like Bangladesh, could attract much-needed investment and foster growth in Pakistan's pharmaceutical industry.

The decline of MNCs in Pakistan not only impacts the economy but also restricts access to innovative medicines for local patients, potentially affecting healthcare quality and affordability, she added.

Ms Haq said that with appropriate reforms, Pakistan could unlock significant potential, including up to $5 billion in pharmaceutical exports and $1.5 billion in foreign direct investment.

"The future of foreign investment in Pakistan's pharmaceutical sector hinges on decisive policy changes," Haq remarked. "Addressing these challenges is crucial not only for economic growth but also to ensure access to quality healthcare for all Pakistanis," she added.

The Pharma Bureau advocates for comprehensive reforms to create a more conducive business environment that attracts and retains foreign investment in Pakistan's healthcare sector.