Government must allow the pharmaceutical companies to earn foreign exchange trough "contract manufacturing" because a number of multinational companies are keen to invest in Pakistan to increase the export potential of the local manufacturing sector.
"It is unfortunate that Contract Manufacturing is not being practised in Pakistan despite having a lot of potential," said Ayesha Tammy Haq, Executive Director of the Pharma Bureau talking to the Business Recorder. She said several multinational companies had left Pakistan over quality production and cost issues.
Contract manufacturing is a term for the manufacturing of drugs through those other pharmaceutical companies who have specialisation in certain formulations.
Pharma industry experts also have demanded reforms in the existing regulatory framework in order to unlock the potential of the local pharmaceutical manufacturing sector. They also sought to secure access to global markets for products manufactured locally.
"Ban on contract manufacturing has engendered huge increase in illegal manufacturing and trade of spurious, substandard and unlicensed medicines in the country," said an expert who wished not to be identified by name.
He further said that aforementioned malpractice was tantamount to play with the people's health and it also caused huge financial losses to the tune of over Rs 12 billion per annum to the national exchequer. He said that the mushroom growth of counterfeit medicines in recent decade adversely affected short and long-term growth of the pharmaceutical sector.
"Contract Manufacturing Policy can help sort out these problems," he said.
Former chairman of Pakistan Pharmaceutical Manufacturers Association (PPMC) Dr Kaiser Waheed urged the Drug Regulatory Authority of Pakistan (DRAP) to allow contract manufacturing in the country to help boost local manufacturing operations that would make it competitive in the global market.
Lack of a policy and implementation capacity in this regard remains the prime concern of relevant stakeholders, according to the experts who also believe that elimination of production and sale of spurious drugs across the country also demand required much-demanded policy. One the one hand, the manufacturers of quality medicines are bereft of any support from the state and on the other, the counterfeit producers find a conducive environment for legal distribution chain of fake drugs and spurious medicines.
They said by fostering active partnerships between local manufacturers and global players, Pakistan can improve quality standards in local manufacturing, facilitate transfer of technology and best practices and provide local manufacturers global access.
"It is indeed a fact that in order to save costs, many reputable companies particularly multinationals have outsourced their products to other domestic pharmaceutical firms," said a local pharmaceutical manufacturer.