Pakistan’s pharmaceutical sector is looking to capitalise on new US tariff policies, which offer the country a competitive advantage over its regional rivals. Under the new tariffs, Pakistan faces a 19% duty on exports to the United States, compared to 25-50% for India and up to 50% for China.
This favorable tariff structure presents an opportunity for Pakistan’s pharmaceutical industry to expand exports to the US, a market dominated by India and China. However, experts say that regulatory approvals from US authorities will be crucial for unlocking this potential.
In 2024, Indian pharmaceutical exports to the US were valued at over $8.5 billion, while Chinese exports totaled more than $2.5 billion.
According to the Pakistan Bureau of Statistics, Pakistan’s pharmaceutical exports saw a 34% increase in FY25, reaching $457 million, the highest growth in two decades. Pakistan currently exports medicines to 70 countries across Europe, Central Asia, Africa, and the US.
The US is also facing shortages of various medicines, creating further opportunities for countries like Pakistan to meet the growing demand. Pakistan’s pharmaceutical sector, with government and industry support, could significantly boost its exports by adhering to US Food and Drug Administration (FDA) standards and investing in modern manufacturing facilities.
With Pakistan’s diplomatic ties with the US strengthening, there is optimism that the pharmaceutical industry can make inroads into the US market in the coming months.
