Pakistan’s pharmaceutical industry is pumping more than $500 million into modernizing factories in a bid to meet international standards and capture markets stretching from the Persian Gulf to Europe.
The sector, which generated $457 million in exports in FY24 after recording its fastest growth in two decades with a 34 percent year-on-year surge, is now positioning itself for a much larger global footprint. Officials estimate medicine exports could climb to $5 billion annually within the next eight years if companies secure global certifications and policy support.
Pharmaceutical exports already account for over 1 percent of GDP and save Pakistan about $2 billion a year through import substitution, according to the United Business Group of the FPCCI. Yet, with per capita drug spending among the lowest in the region, domestic sales still dominate the industry, which was valued at around $3.29 billion last year.
“India and Bangladesh are benchmarks for what we can achieve in exports,” said Javed Ghulam Mohammad, CEO of Martin Dow Group, one of the country’s largest drugmakers and a key member of the Pakistan Pharmaceutical Manufacturers Association.
Martin Dow itself is investing $30 million to secure Good Manufacturing Practice certification, targeting a tenfold increase in export share—from 5 percent today to half its revenue within five to eight years. The firm, which posted annual sales of more than $200 million, already produces Roche Holding AG drugs locally, cutting import costs by 50 percent.
The broader industry’s main buyers include Afghanistan, the Philippines, Sri Lanka, Uzbekistan and Iraq, while Kenya, Vietnam, Myanmar and Thailand are seen as growth frontiers. Business Recorder projects Pakistani medicine exports to reach $1.5 billion by 2030.
For now, companies are aiming first at less strictly regulated regions such as Cambodia, Myanmar and East Africa. Once Martin Dow completes its Karachi facility upgrades by 2027, it plans to expand into Europe and the Middle East, where compliance standards are more demanding.
Despite the export push, challenges loom. High energy prices, currency devaluation and past government drug price caps have squeezed margins, leaving some firms financially vulnerable. Even so, with more than 650 manufacturers serving a population of 250 million, industry leaders say the sector’s global ambitions are stronger than ever.
Nice to know pharma industry progressing and earning valuable foreign exchange. Pharma industry should get more valuable certificates and ensure more compliance to standards rules and procedures. It is the duty of pharma association check necessary standards for local/ export standards.