How can Pakistan grow its Pharmaceutical Exports?

[FuturePAF]

Yah but what I'm saying is its already started:

https://invest.gov.pk/sez

So there need to be holding to fire of the feet, by those in position to do so...to best bring clear answers for what are the lessons so far and best practices so far etc and what not to do or whats not going well etc...and who the performers were in the system and who weren't....how to enable more of former, how to suppress or get rid of latter.

It has been 8 years so there must already be some body of stuff to learn from and take forward...and if there isn't it means something really needs fixing in the system handling it.

Good point, 8 years, or at least the last two under a more business friendly government, should have seen some progress. I will try to read up more on what is going on with the SEZ so far.

Either way, the recent shift in global supply chains opened up potential access to cheaper resources then potential competitors and it should light a fire under the governments feet to redouble their efforts to attract FDI and take advantage of the new opportunity, now more than ever, during this pandemic.

 

[Nilgiri]

Good point, 8 years, or at least the last two under a more business friendly government, should have seen some progress. I will try to read up more on what is going on with the SEZ so far.

Would be interested to see what you find, do share if possible. Thanks.

Either way, the recent shift in global supply chains opened up potential access to cheaper resources then potential competitors and it should light a fire under the governments feet to redouble their efforts to attract FDI and take advantage of the new opportunity, now more than ever, during this pandemic.

Yup I wish everyone the best on it....it governs many fates of many regular people who deserve lot better. A lot of regional angst will also reduce I feel.

 

[fitpOsitive]

Today Trump is opening up the US to more importation of Pharmaceuticals. With India looking to move away from Chinese active ingredients and China may start to experience more trade problems with the US, could Pakistan have an opening?

If Pakistan starts to import Chinese raw materials, or better yet produces raw materials in CPEC SEZs, and finds a way to become a conduit for Mid-East Oil to China; road or rail or pipelines (paid for in Oil), it could turn that around into a robust petrochemical industry and a decent Pharmaceutical industry. Prices could be kept competitive with these two crucial factors in effect.

Make Good economic policies. Pakistani industry is capable enough. But policies, corrupt officers and corrupt politicians kill everything.

 

[FuturePAF]

Make Good economic policies. Pakistani industry is capable enough. But policies, corrupt officers and corrupt politicians kill everything.

There are many great hardworking and extremely bright people in Pakistani industries, but trying to partner with them with all the corruption dissuades many from investing. Starting in the SEZ allows a frame work to keep out as much corruption as possible and quickly implement the right policies with less chance corruption or a shift in the political winds will slow them down. The hope is, once the SEZ take off, reforms and implementation of the right policies can be done to the rest of the country. For fear of killing the golden goose, corrupt politicians and corrupt officers will change their ways or face the wrath of the state and local industrialists.

 

[fitpOsitive]

There are many great hardworking and extremely bright people in Pakistani industries, but trying to partner with them with all the corruption dissuades many from investing. Starting in the SEZ allows a frame work to keep out as much corruption as possible and quickly implement the right policies with less chance corruption or a shift in the political winds will slow them down. The hope is, once the SEZ take off, reforms and implementation of the right policies can be done to the rest of the country. For fear of killing the golden goose, corrupt politicians and corrupt officers will change their ways or face the wrath of the state and local industrialists.

Pakistan ki hukumatain kabhi logon ka khayal nahi kerteen. Kabhi log 1st priority nahi hotay.
Jis din aisa hogaya, Pakistan superpower banjaeyga.

 

[Nike]

Well SEZ concept is not new....its actually about 40 years old now.

Again it rests on the crucial implementation, the real important end-tier stuff.

Like I can write at some length in qualititative difference in handling of interested investment parties that went to both China and India in the 2000s for example, and simply picked China because of the core competency and organisation in handling things....because someone with enough care and competency delegated the right people for that stuff....or more recent examples of even Indian companies expanding production in China etc...because again there is a whole culture of free market + ease of business + delivery of quality labour and no-nonsense attitude given by the bureaucrats to minute detail even...at the crucial mid and low tier of operation of such companies and the govt/legal framework at large.

I can compare within India too, which states did a lot better than other states....both having SEZs, both starting with same level of stuff...but its the going on within that concept/brochure ....which ultimately matters in the end to them actually developing the scale and persistence and continually working outwards from that.

there is a lot of competition in Pharma industry globally though, as country like Thailand, Indonesia, Malaysia will trying to seize the chunk of the market. In Indonesia itself major reform is ongoing in Pharma sector like the permit for Foreign investor to own 100 percent of their assets in Indonesia when investing in Pharma industry, the relaxation of taxes when the said companies doing research and development and gaining patent rights in Indonesia, incentive for Tax Holiday in scale of their investment value and so on. Not to mention Indonesia is also boost the manpower quality like giving scholarships and research grants for Pharmaceutic and researcher, built more vocational schools and creating the Market by introducing nationwide insurance program (BPJS Kesehatan) so every person can gain access into Healthcare system.

 

[AsifIjaz]

Pakistan pharma industry has a huge base but with little local raw material, research and very ill-defined and easily stretched ethical practices. Let me give a few examples where i was either involved i.e. was a witness

1- Its easier to trek to Baltoro glacier than get a R&D registration and approval from DRAP.
a- DRAP has resource and expertise constraints
b- Compounded by fear of being prosecuted by courts and higher-ups
c - and lastly the politics

2- A decade ago there were about 5 major R&D players engaged in Pakistan. Any guesses how many we have now?
Zero, as all have packed up and left. There is but some good news expected or shall i say long overdue and I hope that the 2 parties involved don't give up as its a 3 years struggle now. Read point 1 for reason.

3- Close to non of our manufacturing facilities are WHO or EMEA/FDA certified. Let that sink in. USA and EMEA are the one of the 2 biggest markets of the world and they are beyond us i.e. we cant export to them.

4- Pharmaceutical industry is not interested in investing in checks, controls and systems that may reap them profits from a highly competitive market of west when they can earn the same or higher amount by sending stuff to Africa, central Asia and southeast Asia. This in turn means we are behind in many latest trends and standards. e.g. Just a couple of years back alo-alo packing was an achievement in Pakistan.

5- No one is interested in vertical integration. We do not want to produce Raw materials and API in Pakistan.

6- As per law a company can import X amount to be utilized by them only. This doesn't happen as industry A will import lets say 1 ton of material to get a better price and will sell 200 kgs to 3 different companies and utilize the remaining for self. This is what happened in the PIC, Lahore incident, We can say what we want but the root cause was this.

7- We are least interested in going towards biologicals and biosimilar products. The number of companies actually having the ability or set up to do so can be counted on 1 hand if not 2/3 fingers.

8- Most companies have received extremely good rates for their products or for some of their products and there is no need for them to innovate regularly. Let me explain with an example.. (names withheld on purpose) A disease X requires to be treated by injections. The second cheapest injection in the market has a retail price of 200 rupees and its production cost is 81 rupees and after adding in discards, breakage, samples and donation the cost is 115 rupees. Now if this company makes 30 products then just 2 or 3 products with similar margins are enough to run the company. Why would they innovate or modernize? Problem = pricing in DRAP

9- Many companies pay doctors, give them financial, materialistic and leisure benefits the stories of which need me to up typing for hrs and hrs.

10- For those who know, most of the bioequivalence data is another name of Punjab stage dramas. Let us say that the situation is far far far worse than anything I could have imagined.

Anyone is welcome to negate any of the points above but please do so with facts. I have given more than a decade to the pharmaceutical industry of Pakistan and I am being extremely generous here.

 

[Nilgiri]

Pakistan pharma industry has a huge base but with little local raw material, research and very ill-defined and easily stretched ethical practices. Let me give a few examples where i was either involved i.e. was a witness

1- Its easier to trek to Baltoro glacier than get a R&D registration and approval from DRAP.
a- DRAP has resource and expertise constraints
b- Compounded by fear of being prosecuted by courts and higher-ups
c - and lastly the politics

2- A decade ago there were about 5 major R&D players engaged in Pakistan. Any guesses how many we have now?
Zero, as all have packed up and left. There is but some good news expected or shall i say long overdue and I hope that the 2 parties involved don't give up as its a 3 years struggle now. Read point 1 for reason.

3- Close to non of our manufacturing facilities are WHO or EMEA/FDA certified. Let that sink in. USA and EMEA are the one of the 2 biggest markets of the world and they are beyond us i.e. we cant export to them.

4- Pharmaceutical industry is not interested in investing in checks, controls and systems that may reap them profits from a highly competitive market of west when they can earn the same or higher amount by sending stuff to Africa, central Asia and southeast Asia. This in turn means we are behind in many latest trends and standards. e.g. Just a couple of years back alo-alo packing was an achievement in Pakistan.

5- No one is interested in vertical integration. We do not want to produce Raw materials and API in Pakistan.

6- As per law a company can import X amount to be utilized by them only. This doesn't happen as industry A will import lets say 1 ton of material to get a better price and will sell 200 kgs to 3 different companies and utilize the remaining for self. This is what happened in the PIC, Lahore incident, We can say what we want but the root cause was this.

7- We are least interested in going towards biologicals and biosimilar products. The number of companies actually having the ability or set up to do so can be counted on 1 hand if not 2/3 fingers.

8- Most companies have received extremely good rates for their products or for some of their products and there is no need for them to innovate regularly. Let me explain with an example.. (names withheld on purpose) A disease X requires to be treated by injections. The second cheapest injection in the market has a retail price of 200 rupees and its production cost is 81 rupees and after adding in discards, breakage, samples and donation the cost is 115 rupees. Now if this company makes 30 products then just 2 or 3 products with similar margins are enough to run the company. Why would they innovate or modernize? Problem = pricing in DRAP

9- Many companies pay doctors, give them financial, materialistic and leisure benefits the stories of which need me to up typing for hrs and hrs.

10- For those who know, most of the bioequivalence data is another name of Punjab stage dramas. Let us say that the situation is far far far worse than anything I could have imagined.

Anyone is welcome to negate any of the points above but please do so with facts. I have given more than a decade to the pharmaceutical industry of Pakistan and I am being extremely generous here.

This is interesting....are you connected to the industry in some way or you just read/followed it a whole lot?

 

[Vapnope]

Two things.
None of Pakistani owned Pharma company has WHO clearance and none has PIC/S certification.

- With WHO audit clearance, UN starts buying medicines from you.

- With PIC/S certification you can access the European markets.

One most important part is absence of manufacturing facilities for raw materials hence total reliance on imports.

Good thing is that Pakistani pharma companies have started preparing for WHO compliance (Thanks to an Indian who is helping greatly). At least two companies are trying to get PIC/S certification as well but that will take at least 3 years.

But you need to put in the research work and sound sustained corporate development strategy to do it...to grow the needed infra over 10+ years.

Our problems are compounded because most of the pharma industries are family businesses where MDs do not think beyond their profits and mostly are complacent.

You will be surprised to know that there are 850 pharma plants in Pakistan and most of them don't even have proper corporate policies. The culture of development is virtually non existent barring a few players.

 

[AsifIjaz]

This is interesting....are you connected to the industry in some way or you just read/followed it a whole lot?

I would refrain from answering in which capacity or space I was involved in, as my disclosures can be detrimental to a lot of people. I would just say that I have given my best times to the industry and left about 2 years ago.

I am not entering into a blame game but mind you, I have visited Indian industry many times and have interacted with many many many firms, CROs, and people working in pharma, CRO and R&D in different capacities.... The only thing different between the two countries is due to the laws enforced after supreme court and other interventions around 2012 to 2016. These led to a ban on doctor's visits abroad and the change in the R&D laws regarding ethics, ICF and rights of participants. Lastly, for India the industry is half a century old if not more. The economy of scale also leads to a bigger footprint for the industry making investment more justifiable and easier.
The practices, the drawbacks, shortcuts and the issues are the same across pakistan, India and to some extent Bangladesh as well. In Pakistan mainly, there are laws but with loopholes and no implementation and in India there are laws with limited or some interventions but there are still "a few" loop holes.
I am not 100% sure of Bangladesh as I have only met the people from there and have not visited facilities or reviewed it in black and white but the general discussion I have had with them spells the same.