The pharmaceutical exports target of one billion dollars is unlikely to be met due prevailing global and national unfavourable circumstances. Pakistan Pharmaceutical Manufacturers Association (PPMA), which is leading some 450 local pharmaceutical industries, has set its exports targets for 2020 as 'Export Vision 2020'.
Sources told Business Recorder on Tuesday that although the world economic turmoil has affected the pharmaceutical business across the world, to some extent it had its impact in the country. They said that last year the total growth of international pharmaceutical market was $800 billion, but now it would decrease to $720 billion, which would also have impact on the national market.
They said that local industry is under heavy pressure due to ponderous production charges and low retail prices. They said that the government had allowed increase in medicine prices in December 2001, and now due to surging inflation the production expenditure has increased by at least 35 to 40 percent.
They said that the pharmaceutical sector of the country is paying huge--double and triple--taxes on raw material and others. Citing the example, they said that some industries buy raw material through local chemical sellers. In this way, the companies pay taxes for import and then in account of sales tax.
They added that likewise the industries also pay double taxes for packaging materials. They further said the recent hike in prices including oil, gas and power tariff have also increased the burden in two aspects: first, raising production costs, and secondly in rising salaries budgets.
Sources said these pressures are now compelling the local pharma industry either to wind up or stop production of those medicines consuming heavy capital and going into loss. They said the local medicine market is already facing immense shortage of drugs and it would increase gradually due to increasing prices.
On competing in international market, sources observed that some Asian markets, including India and China, are rapidly capturing the regional and Middle East and African markets owing to best trade policies. They said their best policy is also impacting their local market which were captured by international markets.
Citing the example of India they said that India's first leading pharmaceutical company is not an MNC but it is local, while Pakistani local company stands at number 10. Commenting on new legislation for data protection, sources said the local industry is manufacturing 47,000 generic medicines, while not a single drug has been yet invented in the country, in case of this legislation almost industry would be stopped to form medicines.
To a query on research being conducted in the country, they said that the developed countries are investing some 120 billion dollars annually in research. Regarding Pakistan, they said that although the government allocates some millions of rupees in this regard, in 60 years no new drug formula could be formed, only due to improper planning and extensive negligence. Sources said that the government must conduct research for inventing new drugs so that pharmaceutical companies could rely on their own country-made medicines.