Beruflich Dokumente
Kultur Dokumente
2016
JINNAH UNIVERSITY FOR WOMEN
Nausheen Khan
Group Nuzhat Fatim a
M em b Syeda Um ber Rehan
ers
Rabia Jam shaid
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ACKNOWLEDGEMENT
We would like to express our gratitude first and foremost to our Lord Almighty Allah for giving
us the valor to remain dedicated to make this report.
Writing this report appeared to be great experience to us. It added a lot to our knowledge while
we were working on this report. If we say that this report is one of our memorable experiences in
student life, then it would not be wrong.
For the successful completion of this report, we would also like to thank our course instructor
Miss Qurat-ul-Ain. Without her gratitude this report would not be possible.
Finally, we offer our heartiest gratitude to our family members for their selfless blessings.
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EXECUTIVE SUMMARY
The pharmaceutical industry is divided into two sections i.e. private and public sector.In 1947
there were only three manufacturing units located at Lahore, Rawalpindi and Peshawar.
Pharmaceutical industries are highly competitive but fragmented industry. They have
complicated business model with numerous stakeholders. But they contribute significant amount
toward GDP. According to Pakistans pharmaceutical and healthcare survey pharmaceutical
industry contributes $1.6 billion towards GDP. Due to its significant contribution towards GDP,
government has put significant effort towards pharmaceutical industry development. As a result
of which Pakistan is the 8th largest pharmaceutical manufacturing industry in world. These
industries, however, face some problems like power shortage, lack of trained manpower,
difficulty in export, lack of new technology, changing political and economic policies, bad law
and order situation resulting in lower investment, higher interest rate and terrorism which reflects
foreign investors.
Research and Development threats from cheap imports, need of change in industry focus from
import substitution to export oriented, local active pharmaceutical ingredient 90% demand being
imported, bio-availability and bio-equivalence are some of the major challenges faced by
pharmaceutical industry of Pakistan. The Pakistan pharmaceutical industry is relatively well-
known in the Developing Asian markets with an export turnover of US$1 Billion as of 2013. Its
main partners included neighboring Afghanistan which itself doesn't have a medicinal industry.
Currently Pakistan has more than 800 large volume pharmaceutical formulation units running on
world class high quality equipments, including those operated by 25 multinationals present in
the country.
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TABLE OF CONTENT:
1. Introduction....... Pg.4
2. History Pg.5
6.1. DirectPg.8
10. Challenges..Pg.9
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PHARMACEUTICAL INDUSTRIES OF
PAKISTAN
1. INTRODUCTION:
What is Pharmaceutical?
Pakistan Pharmaceutical industry is growing at a very fast rate and contributing to the national
economy. The mainstay of public health is pharmaceutical sector in any country whether; it is
developing or under developing nation. The pharmacy profession and society are complementary
and dependent on each other for their development as a matter of fact. Pharmaceutical
preparations are the integral essential part of the health care system and best reward for the
suffering people and society.
Pakistan has a very vibrant and forward looking Pharma Industry. The Pakistan Pharmaceutical
Industry meets around 70% of the country's demand of Finished Medicine. Pakistan is a
developing pharmaceutical market, with a large population and economic progress evident, but
per capita drug spending was rather low , The Pakistan pharma industry is relatively young in the
international markets with an export turnover of over US$ 100 Million as of 2007. Pakistan
Pharma Industry boasts of quality producers and many units are approved by regulatory
authorities all over the world.
Lets have a look to the global and Pakistan scenario of Pharma Sector.
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1.1. Global Scenario of Pharmaceutical Sector
2. HISTORY
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The Pakistan pharmaceutical sector has come a long way, being almost non-existent before early
seventies to a prominent provider of healthcare products, meeting almost 95% of the countrys
pharmaceuticals needs.
The pharmaceutical industry is divided into two sections i.e. private and public sector.In 1947
there were only three manufacturing units located at Lahore, Rawalpindi and Peshawar. In the
early years of independence the countrys requirements were met exclusively through imports of
finished products. The discovery of antibiotics, tranquilizers etc. changed all the dynamics and
Pakistan had to import these new expensive medicines from western countries and sold them
locally. This caused a severe drain of foreign exchange allowing government to think and plan
about pharmaceutical industry.The government of that time suspended the import licenses of
pharmaceutical products under open general licenses. A few pharmaceutical industries were
authorized to operate in Pakistan.
A Colombo Plan Mission of pharmaceutical experts toured the country and made observations
regarding the absence of adequate quality control, lack of proper equipment and scarcity of
trained personnel in the existing manufacturing facilities.
Currently Pakistan has more than 800 large volume pharmaceutical formulation units running on
world class high quality equipments, including those operated by 25 multinationals present in
the country. The Pakistan Pharmaceutical Industry meets around 90% of the country's demand of
finished dosage forms and 4% of Active ingredients. Specialized finished dosage forms such as
soft gelatin capsules, parenteral fat emulsions and Metered-dose inhalers continue to be
imported.
The Pakistan pharmaceutical industry is relatively well-known in the Developing Asian markets
with an export turnover of US$1 Billion as of 2013. Its main partners included neighboring
Afghanistan which itself doesn't have a medicinal industry, Tajikistan as well as other central
Asian republics. In the past, Sri Lanka used to be Pakistan's biggest medicinal importer however
trading volumes have recently slightly subsided. Now more companies are having interest in
investing in Pakistan's medicinal Industries. Companies like Merck, Abbott and
GlaxoSmithKline have reported a great increase in profits in 2013. The pharmaceutical industry
in Pakistan made its entry in to the online space through Sehat.com.pk in April 2014.
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Highly Competitive but Fragmented industry.
Complicated business model with numerous
stakeholders.
Very Technical/Scientific products.
Major R&D expenditures and High Risk product
development environment.
Long Product-Development Timelines.
Long Marketing-Planning horizons.
Highly regulated industry and highly regulated
marketing communications by FDA.
Primary targets: Healthcare Professionals and Consumers.
Numerous customers with variety of information needs requires multiple approaches to
creating marketing campaigns and communications.
Evolving selling environment.
Use of e-channel still in its infancy in our industry.
The Pakistan pharmaceutical sector has come a long way, being almost non-existent before early
seventies to a prominent provider of healthcare products, meeting
almost 95 per cent of the countrys pharmaceuticals needs.
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With 40 biotechnology companies, involved in development and manufacturing of
various drugs.
Pharmaceutical sector is one of the most developed hi-tech sectors in Pakistan.
New pharmacy schools have been set up all across the country to provide quality
education to the students of pharmacy.
ROLE OF GOVERNMENT:
Pakistan Health ministry is considering toconstitute a committee comprising of the World Health
Organization, Pakistan pharma and health ministry to keep check on the quality of drugs
available in the market. According to statistics by ministry of health 41.2% of the Pakistani
population cannot afford procuring medicines due to high prices in the country.
The move is being taken in the field of medicine by theprivate sector in collaboration with
investors The plantprivate sector in collaboration with investors The plantwould start production
within the next few years. Severalwould start production within the next few years.
Severalcountries have expressed keen interest to invest in Pakistancountries have expressed keen
interest to invest in Pakistandue to the pro-active policies of the government.
haveWhile substantial increases in public sector spending havebeen witnessed in recent years.
toSome major public sector programs have been initiated toaddress the healthcare needs of the
population. Theseaddress the healthcare needs of the population. These include:
The National Program for Family Planning and Primary Health Care.
The government has also formed a policy recently The government has also formed a policy
recentlyallowing companies to produce raw materialsallowing companies to produce raw
materialslocally. Companies in Pakistan rely heavily onlocally. Companies in Pakistan rely
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heavily onChina, India, Germany, UK and Japan for rawChina, India, Germany, UK and Japan
for rawmaterial imports.material imports.
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6. BENEFITS OF LOCAL PHARMA MANUFACTURING SECTOR
6.1. DIRECT
Self-Reliance.
Foreign exchange saving.
Employment generation. Direct
Employment for Females.
Skill Up gradation.
FDI.
Transfer of Tech. & Know How.
Critical Support in Man Made &
National disasters.
6.2. INDIRECT
Indirect employment.
Investment. Indirect
Skill Acquisition.
Technology Spillovers.
Brain Drain Reversal.
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Power shortage.
Lack of trained manpower.
Difficulty in export.
Lack of new technology.
Changing political and economic policies.
Bad law and order situation resulting in lower
investment.
Higher interest rate.
Terrorism which reflects foreign investors.
No doubt that Pakistan Pharmaceutical industry is growing at a steady rate but there are certain
challenges which pose a great threat to the industry.
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The first major challenge which the Pharma Industry
faces is the total government control on the prices of all
the enlisted products.
Import of raw material which costs a lot of precious
foreign exchange.
Rapid devaluation of the rupee against the major
currencies, due to which the profit margins are shrinking.
Increasing cost of manpower and energy.
Low R&D expenditure, which can lead to the suffering of masses for not conducting
sufficient research on the newly emerging disease in the Pakistani environment.
Political instability is another major factor which is emerging as the major challenge to
the pharma Industry, because of discontinuation of the policies.
Last but not the least, the deteriorating law and order situation, due to which most of
companies have suffered in terms of sales and also lack of reach to the customers in the
affected areas.
Market access is challenging and operational risks are high.
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11. NEEDS TO BE DONE
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12. CONCLUSION
Pharmaceutical sector is one of the most developed hi-tech sectors in Pakistan The growth of the
country's pharmaceutical industry has dropped from approximately 16 percent per annum to
around eight percent per annum which is a cause of concern not only for the industry but
government as well. There is a need of publicly funded R&D institution. Pakistan has to create
an enabling infrastructure and linkage to facilitate Pharmaceutical Industry to improve process
technique. It is needed to stimulate skill development of Human Resource in Pharmaceutical
R&D and to enhance nations self-reliance in drugs and pharmaceuticals, especially in areas of
national health requirements. Providing technical support to pharmaceutical companies for
export is also necessary.
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REFERENCES
http://www.rcci.org.pk/wp-content/uploads/2012/12/SWOT.pdf
http://prr.hec.gov.pk/chapters/3068h-1.pdf
https://en.wikipedia.org/wiki/Pharmaceutical_industry_in_Pakistan
http://www.slideshare.net/sherazpervaiz/pharmaceutical-marketing-paf-kiat
http://www.answers.com/Q/How_many_pharmaceutical_companies_in_pakistan
http://pu.edu.pk/images/publication/PPI_in_WTO_%20regime-Issues_and_Prospects.pdf
http://health-asia.com/conferences/2014/Presentations/Day1/PharmaConvention/02-
Nasir-javaid.pdf
http://www.pcsir-lhr.gov.pk/Pharmaceutical-Seminar/Technical-SessionI/Dr.%20Abdul
%20Hafeez%20Pharmaceutical%20Industry%20in%2021st%20Century.pdf
https://hmzakazi.wordpress.com/2012/03/10/history-of-pharmaceutical-industry-in-
pakistan/
http://www.brecorder.com/business-and-economy/189:pakistan/1195160:growth-of-
pharma-industry-drops-to-8-percent-from-16/?date=2015-06-12
http://www.pakistantoday.com.pk/2012/04/17/business/pharmaceutical-industry-could-
do-with-some-anti-depressants/
http://www.slideshare.net/SamiSwati/role-of-industries-in-the-economy-of-pakistan
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