10 – YEAR PLAN

CLUSTER BASED DEVELOPMENT

Pharmaceutical Sector in Pakistan

(Progress Review - February 2023)
 Presentation Layout

 Objectives of the Study

 Introduction
 Study Plan
 Expected Outcome
 Long-term Impact
 Mapping of Pharmaceutical Industry
 Trade Performance
 SWOT Analysis
 Value-Chain Analysis
 Identification of Key Stakeholders
 Mapping of Key Stakeholders
 Progress Overview
 Objectives of the Study
• Assessment of sector’s performance in terms of current market
scenario, trade volume, competitiveness
• Identification of challenges / issues faced by local manufacturers
and exporters
• Pharmaceutical Cluster Development Plan
• Developing tangible policy recommendations and required Govt.
interventions for development and growth of the sector
 Introduction
• Pharmaceutical sector is one of the important industrial sectors of
the economy primarily for its imperative nature.
• Also the sector is consistently growing and has potential to become
export competitive value-added sector of Pakistan.
• Approximately more than 700 pharmaceutical firms are operating in
Pakistan, with an estimated value of USD 3.2 billion, contributes
1% to the Gross Domestic Product (GDP) of the country.
• Pharmaceutical industry of Pakistan produces 0.3% of the global
pharmaceutical manufacturing volume.
 Study Plan
The study is divided into two stages of activities:
Stage 1: It comprises of desk research / sector diagnosis on Pharmaceutical
sector including size, structure, core competency, trade performance, country
wise comparison, SWOT analysis and assessment of challenges faced by the
industry at present.
Stage 2: To identify pre-requisites of Pharmaceutical cluster development
plan, supporting government in terms of sector specific policy formulation,
bringing reforms, and designing intervention required by the stakeholders.
A key objective is to develop a 10 year cluster development plan based on
consultative session/webinar with the key stakeholders who will provide in-
depth knowledge for growth dynamics of the sector as well as requirement for
successful cluster development.
 Expected Outcome

 A brief sector diagnosis report

 10-year Cluster based development plan

 Policy recommendations for pharmaceutical sector development

based on identified hindrances in growth of the sector
 Suggestions of manufacturers, exporters, and retailers for desired
policy interventions by Govt. as well as other required incentives,
exemptions, or reforms in existing procedures of licensing /
registration etc.
 Long-term Impact

• The study aims to develop a long-term cluster development plan for

growth of the sector especially in terms of production and exports.

• Findings of the study will help in designing policies particular to

pharmaceutical industry that will facilitate local manufacturers,
exporters and retailers promoting exports and business and attracting
foreign direct investment in the sector.
Mapping of Pharmaceutical Industry (Province Wise)

Pharmaceutical Companies in Pakistan (Province Wise)

Mapping of Pharmaceutical Industry (City Wise)

Pharmaceutical Companies in Pakistan (City Wise)

 Trade Profile of Pharmaceutical Industry

WORLD EXPORTS IN PHARMACEUTICAL SECTOR TOP FIVE EXPORTING COUNTRIES (2017-2021)

(AMOUNT US $ MILLION) (AMOUNT US $ MILLION)
1,000,000 150,000.00
858,980
800,000 100,000.00
715,581
624,581 657,690
600,000 565,496 50,000.00
400,000
-
2017 2018 2019 2020 2021
200,000
Germany Switzerland Belgium
-
2017 2018 2019 2020 2021 USA Ireland

PAKISTAN EXPORTS IN PHARMACEUTICAL SECTORS PAKISTAN IMPORTS IN PHARMACEUTICAL SECTOR

(AMOUNT US $ MILLION) (AMOUNT US $ MILLION)
300.000 4,000
3,792
269.429 3,500
250.000
235.836
217.588 3,000
200.000 207.600 198.857
2,500
150.000 2,000
100.000 1,500
1,000 882
50.000 788 798 783
500
- -
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

Source: ITC 2021

 SWOT Analysis of Pharmaceutical Industry

Strengths: Weakness:

1.Large domestic market Weak Regulatory Framework

2.Cluster characterized by Large corporations Limited innovation and R&D

3.Robust growth Import Dependence (Raw Material)

4.Export Performance Lack of capital

SWOT
Opportunities:
ANALYSIS Threats:

Investment in generic sector Inconsistent Policies

Technology Transfer from MNCs High Competition

Value addition in the Products Increasing Cost of Doing business

Development of APIs Price Freezing

 Value Chain GAP Analysis (Comparison)
Germany India Bangladesh Pakistan
Research & FDA Approved Labs    
Development
  Government Sponsored Industrial API Parks       -
  Intellectual Property (IP) Laws    -
  R&D Tax Fund    
  Private-Public Collaborations    
         
Raw Material APIs imported by MNCs/Generics produced by locals    
(Imported/Local)
  NOC requirement for import/export    
           
Production Bioequivalence Testing Facility    
  Halal Manufacturing License  - - -
  Subsidy for pharmaceutical exports    
  Contract Manufacturing    
  Enforcement of GMPs    
  Smaller firms producing generics    
  Decentralized system of public procurement    
           
Wholesale/Retail Model Pharmacies and SME loans    
  Mobile drug courts against drug abuse violators    
           
Final Consumer/ Firm-Doctor collusion    
Patient
 Identification of Key Stakeholders of Pharmaceutical Industry
Title
Drug Regulatory Authority
of Pakistan (DRAP)
(Under Ministry of National Health Services,
Regulation and Coordination)
The Ministry of National
Health Services, Regulation
and Coordination (Government Body)
Pakistan Pharmaceutical
Manufacturers’ Association
(PPMA)
Punjab Pharmacy Council
 
 
(Provincial Entity under Federal Authority)
Key Role Contact Info
Main agency to regulate pharmaceutical products, including manufacturing, www.dra.gov.pk
licensing, product registration, price setting and quality inspection. 0800-03727
MNHSRC oversees other regulatory bodies in the health sector, including DRAP. Director General (Health)
The primary role is to coordinate and regulate the sector. 051-9245933
Foremost representative body for Pakistan’s pharmaceutical sector, and for  
national companies. Aims to promote the interests of pharmaceutical info@ppma.org.pk
manufacturers and improve their trade potential. 051-4435103
Responsible for implementing the provincial health strategies, the regulation of secretary@punjabpharmacycou
drug sales, licensing of pharmacies as well as drug inspection and drug testing to ncil.com
prevent sale of counterfeit products
042-99260298
042-99260300
 Identification of Key Stakeholders of Pharmaceutical Industry

Title Key Role Contact Info

Trade Development Authority of Pakistan (TDAP) Responsible for promoting trade and commerce in tdap@tdap.gov.pk
(Under Ministry of Commerce) Pakistan and enhancing the country’s trade 021-111-444-111
potential.

Pakistan Chemists & Druggists’ Associations (PCDA) A retailer’s association who belong to sales and Muhammad Asim Jamil
(Under Ministry of Commerce) distribution.
021-32732387
0321-9208708

Pakistan Pharmacists Association (PPA) National professional body of pharmacists engaged secretary@pakistanpharmacistsassociation.c
in various facets of the profession of pharmacy. om

Provincial Chambers of Commerce and Industry (Lahore To be a bridge between the Business Community
Chamber of Commerce & industry, Rawalpindi Chamber and Regulatory Bodies for in policy advocacy. sect@lcci.org.pk
of Commerce & Industry etc.) rcci@rcci.org.pk
secretary@kcci.com.pk

Pakistan Tabbi Pharmaceutical Manufacturer Association Promote, develop, support, motivate, safeguard and
(PTMA) encourage Pakistan’s Tibbi Pharmaceutical
manufacturing industry. info@ptpma.org
+92-42-35404466
 Identification of Key Stakeholders of Pharmaceutical Industry
Title Key Role Contact Info
Distributors / Retailors of Pharmaceutical Drug distributors purchase medications directly from
products (e.g. Bukhari Traders Sialkot, AA
manufacturers and, in turn, sell the medications to
Pharma Gujrat, Medi trade Rawalpindi)
pharmacies.
Top Pharmaceutical manufacturers /
exporters.  Bringing advanced technology and expertise:
MNC’s:  Investing in research and development:
1. GlaxoSmithKline Pakistan Ltd.  Creating job opportunities:
2. Pfizer Pakistan Limited
3. Sanofi-Aventis Pakistan Limited  Meeting global healthcare standards:
4. Abbott Laboratories Pakistan Ltd  Introducing new drugs and therapies:
5. Martin Dow Limited  Supporting local communities:
 Contributing to the economy:
\
Local:
6. Ferozsons Laboratories Ltd  Producing essential medicines:
7. AGP Limited  Creating employment opportunities:
8. ICI Pakistan Limited  Meeting local healthcare needs:
9. Getz Pharma Pvt. Ltd
 Encouraging research and development:
 Meeting regulatory standards:
 Promoting innovation:
 Collaborating with international partners:
 Mapping of Key Stakeholders of Pharmaceutical Industry
Stakeholder Name
Drug Regulatory Authority
of Pakistan (DRAP)
 
(Under Ministry of National Health Services,
Regulation and Coordination)
The Ministry of National
Health Services, Regulation
and Coordination (Government Body)
Pakistan Pharmaceutical
Manufacturers’ Association
(PPMA)
Punjab Pharmacy Council
 
 
(Provincial Entity under Federal Authority)
Potential Impact Priority
 Registration & Licensing High
 Enforcement of Drug Law
 Forming policies and laws as DRAP Act (2012)
 Price control
 National / International High
 Coordination on Public Health
 To oversee regulatory bodies in health sector
 Population welfare coordination
 Enforcement of Drug Law
 Maintaining record of all registered pharmaceutical firms  High
 Conducting annual meeting to discuss contemporary
issues and way forward
 Facilitating stakeholders of the industry
 Ensuring safety and security of drugs
 Registration & Renewal of pharmacists Medium
 Examinations of pharmacists
 Issuance of Good standing certificate & verification of
certificate
 Publication of Pharmacy text books
 Trainings
 Inspection of Pharmaceutical institutions
 Mapping of Key Stakeholders of Pharmaceutical Industry
Stakeholder Name
Trade Development Authority of
Pakistan (TDAP)
 
(Under Ministry of Commerce)
Pakistan Chemists & Druggists’
Associations (PCDA)
 
(Under Ministry of Commerce)
Pakistan Tabbi Pharmaceutical
Manufacturer Association (PTMA)
Potential Impact Priority
 To recommend TDAP board export promotion strategies for Medium
particular sector / product
 To promote research in trade and export policy
 To liaise with international bodies
 To promote export sectors by forming special boards
 To reward top exporters with awards and incentives
 Representative body of traders, manufacturers, wholesalers, Medium
and retailers
 Mandate to meet with diplomats, Consulate General, Govt.
officials
 Arranging national / international conferences, seminars
 Conducting trainings
 Fairs / Exhibitions
 Take measures for enhancing the export of medicines Low
 Encourage member companies on empirical and scientific
research into the quality, safety and effectiveness of herbal
health products 
 To promote sustainable patterns of quality manufacturing
following GMP for the herbal manufacturing industry
 Mapping of Key Stakeholders of Pharmaceutical Industry

Stakeholder Name Potential Impact Priority

Pakistan Pharmacists Association (PPA)  Drug sale license, implementation of drug Medium
rules
 Setting wages of pharmacist
 Recruitment of pharmacists
 Coordination with international bodies i.e.
WHO, UNICIEF, DOTS, National TB control
Program, National Malaria control Program
 Training programs

Provincial Chambers of Commerce and  To be a bridge between the Business Medium

Industry (Lahore Chamber of Commerce & Community and Regulatory Bodies for in
industry, Rawalpindi Chamber of Commerce policy advocacy.
& Industry etc.)
 Mapping of Key Stakeholders of Pharmaceutical Industry

Stakeholder Name Potential Impact Priority

Distributors / Retailors of Pharmaceutical  Drug distributors purchase medications directly Low
products (e.g. Bukhari Traders Sialkot, AA from manufacturers and, in turn, sell the
Pharma Gujrat, Medi trade Rawalpindi) medications to pharmacies.

Top Pharmaceutical manufacturers /  The firms are operating locally and generating High
exporters. tax revenue
MNC’s:  Contributing to GDP, employment and export
1. GlaxoSmithKline Pakistan Ltd.  Carry domestic market share
2. Pfizer Pakistan Limited  Supply medicines to consumers
3. Sanofi-Aventis Pakistan Limited  Members of associations
4. Abbott Laboratories Pakistan Ltd
5. Martin Dow Limited
6. The Searle Company Ltd

Local:
7. Ferozsons Laboratories Ltd
8. AGP Limited
9. ICI Pakistan Limited
10. Getz Pharma Pvt. Ltd
 Progress on Study

Sr. No Deliverables as ToRs Phases of Study Progress on Tasks

1. Collecting & Analyzing Phase I: Sector Diagnosis & SWOT analysis Completed
Cluster Data
Scope of the Sector, Size, Structure, Core Competency First draft completed.
Currently the information is being
Value-chain Analysis refined.
Identification of Key Stakeholders Completed

International Trade Performance Completed

2. Stakeholder Engagement Phase II: Primary Research Planned to be held in

March 2023
Consultation with Stakeholders
  Focus Group Discussions (FGDs) Planned to be held in
March 2023
  Primary Data Collection, Compilations and Coding To be held in April 2023

  Analysis on Primary Data To be held in April 2023

Analysis of Potential, Opportunities, Constraints and Challenges

3. Strategy Development & Phase III: Strategy Development To be held in May 2023
Validation
Interventions, Impact Scenario & Validation
  10-Year Cluster Based Development Plan on Pharmaceutical Sector To be held in May 2023

4. Implementation Phase IV: Policy Recommendations / Interventions for Govt. To be held in May 2023
Mechanism
  Action Plan for implementation of proposed strategy To be held in June 2023

5. Monitoring & Recommendations for devising M&E mechanism To be held in June 2023
Evaluation Mechanism