Pakistan, Chinese firms sign 10 MoUs for pharmaceutical investment, API production

Pakistani and Chinese companies on Tuesday signed 10 memorandums of understanding covering pharmaceutical investment, active pharmaceutical ingredient production, vaccine collaboration and technology transfer, in a move aimed at strengthening local manufacturing capacity and reducing reliance on imports.

As per reports, the agreements were signed during a ceremony organised in collaboration with the Ministry of National Health Services, Regulations and Coordination, the Drug Regulatory Authority of Pakistan, One Station China Desk and the office of Parliamentary Secretary for Commerce Dr Zulfiqar Ali Bhatti.

Federal Minister for National Health Services Syed Mustafa Kamal said the agreements marked an important step for Pakistan’s pharmaceutical sector, particularly in local production of pharmaceutical raw materials.

He said Pakistan currently exports medicines to 51 countries but remains heavily dependent on imported active pharmaceutical ingredients (APIs) and vaccines.

The minister added that the government was working to build domestic manufacturing capacity to improve medicine affordability and supply security.

According to the minister, Pakistan imports poultry vaccines worth around $4.5 million annually, while the country would need approximately $1.2 billion each year after 2030 to independently procure vaccines currently supported through global immunisation arrangements.

He said the government was therefore focusing on developing local vaccine manufacturing capabilities before 2030.

Kamal also said Pakistan had developed and secured federal cabinet approval for a National Vaccine Policy, while efforts were underway to activate the National Institute of Health for vaccine-related manufacturing and development support.

The minister said Pakistan was also seeking to achieve WHO Level 3 certification in the coming months, which could expand pharmaceutical export access from 51 countries to more than 150 international markets.

Among the major agreements signed during the ceremony, Unichem Pharmaceuticals Pakistan and China’s Xinxu Group entered into an investment partnership valued at around ₨10 billion.

The agreement includes technology transfer for local production of pharmaceutical raw materials, including Omeprazole API, around 95% of which has historically been imported into Pakistan.

Another agreement was signed between Lucky Core Group and Chinese pharmaceutical partners to expand industrial cooperation between the two countries.

Dr Zulfiqar Ali Bhatti said the agreements reflected the government’s policy of encouraging industrial growth through international investment and strategic partnerships.

He said reliance on imported pharmaceutical raw materials had placed pressure on Pakistan’s foreign exchange reserves and import bill, adding that the objective was to encourage local manufacturing and technology transfer.

Officials and industry representatives attending the event said the agreements would support Pakistan’s efforts to attract foreign direct investment, strengthen healthcare preparedness and expand local pharmaceutical manufacturing capacity.