Team Bravo: Effects of Localization of Raw Material used
by Pharmaceutical Industry in Pakistan
Team members
▪ Mr. Tausef Raza
▪ MBA Finance
Pic ▪ In Charge Training, PAF
▪ Muhammad Shafique Abbasi
▪ MBA Finance
▪ Dr Akbar Niazi Teaching Hospital
(Procurement Professional)
▪ Mishal Zikria
▪ BS Accounting and Finance
▪ Freelancer (Self Employed)
▪ Tehmina Malik
▪ BBA (Hons)
▪ FIIVE Stars Pharma International
Private Limited Islamabad
▪ Mahnoor Amjad
▪ BBA Project Management
▪ Zones IT Solution
Compiled by Dr. Ali Imtiaz
Project outline
Project Scope: Pharmaceutical sector in Pakistan is Mainly focusing more on imported raw
material for their products that leads to high cost of productions and Sales. Needs to be
explore Indegenious industry / local suppliers.
Enabler: Team Bravo
Target customer: Pharmaceutical Companies of Pakistan
Course relevance: Supplier Development
Solutions/Services: Pharmaceutical sector in Pakistan should focus on their local vendors as
their strategic partners and built mutual trusted relationship by making investments in their
manufacturing processes & training of manpower for the sake of higher quality products like
the global suppliers e.g. refining their quality of raw material by introducing latest
manufacturing methods / processes, techniques & technologies etc. Moreover, by having high
quality products both partners can foot-in the international markets.
Business Impact: By introducing indigenous efforts & strategic partnership between these
parties will enable Pharmaceutical companies for having high standard quality of products from
domestic or local supplier at low cost as compared to imported raw material. Moreover,
through strategic partnership both parties will be benefited, as local vendors and
pharmaceutical companies will gain more access to international market through high /
International level quality products and compatible sale prices.
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 Contemporary Issue outline
Situation
• The pharmaceutical sector in Pakistan is
Mainly focusing more on imported raw
material for their products
manufacturing, that increase the cost of
production and ultimatly higher prices
are beared by their customer .
• Lack of trust for their local suplliers due
to quality issues of domestic raw
material.
Costs
More imports of raw materials means more
cost of production, which includes additional
cost of Transportation either by Air or Sea,
Import payments, Custom Bills & duties etc.
Compiled by Dr. Ali Imtiaz
Complexity
• Focusing more on imports, by which
companies may not be able to make /
fulfill the early & urgent requirements of
medicines demanded by the market due
to Supply chain disruption and larger lead
times.
• Late delivery of medicines leads to
dissatisfaction of customers.
• Increasing the cost of Production
• Eventually increase the cost of sales
• Political / Economical instability often
effects the imports of raw materials and
payments to the foreign suppliers
• Market access is challenging, and
operational risks are high
How to overcome hurdles
Movement towards localization instead of
foreign supplier reliance.
Primary Source: Local Vendors
Secondary source: Regional & International
vendors
Solution
• Pharmaceutical sector in Pakistan should
focus on their local vendors as their strategic
partners and built mutual trust relationship.
• Pharmaceutical groups in Pakistan should
come together to help their local vendors by
making investments in their manufacturing
processes & training of manpower to make
their high-quality products like foreign
suppliers e.g., improving their quality of raw
material, manufacturing process etc.
• Demand in the pharmaceutical industry will
be met indigenously. Moreover, due to high
quality products helps both partners to reach
out for the international markets. More so,
Future profit-sharing through strategic
partnerships.
• Both parties will benefit, As local vendors will
gain access to international market through
high / International quality products, which
is good for the nation as well.
Savings
Extra costs can be reduced e.g., High purchasing cost
& imports bills (due to currency fluctuation), custom
duties, Transportation cost (By air shipments) etc.
Economic side: Foreign reserves will not be affected,
there will be much more saving for the sake of
government and GDP.
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