Pakistan Pharmaceutical Export Strategy 2025: Aiming for Global Market Growth

Pakistan’s pharmaceutical industry is rapidly evolving, driven by changing global supply-demand dynamics and local initiatives to modernize and expand its export capabilities. With a domestic market exceeding PKR 1.10 trillion and over 700 pharma manufacturers, the sector fulfilled 80% of local medicinal demand in 2025 and exported medicines worth USD 457 million, marking a 34% growth from the previous year.

Unlocking Export Potential

Pakistan’s key export destinations include Afghanistan, the Philippines, Sri Lanka, Uzbekistan, Cambodia, and Iraq. However, unlocking high-potential regions like Africa, Central Asia, and the Middle East is essential to achieving the $1 billion export goal. Illicit pharma trade, estimated at $90–100 million annually, continues to damage the sector’s credibility. A proposed Pharma Oversight Council comprising SIFC, Army Corps, Anti-Narcotics Force, and PPMA could help curb counterfeit and substandard drug exports.

Technological Transformation & Quality Compliance

Currently, 95% of Pakistan’s pharmaceutical raw materials are imported, primarily from India and China, making the sector vulnerable to supply chain shocks. With only 12% local Active Pharmaceutical Ingredient (API) production, the industry heavily depends on imports.

To compete internationally, AI adoption, investment in modern manufacturing technologies, and adherence to global standards like the WHO, EU, ISO, and PICs are critical. Industry leaders like Haroon Qasim emphasize AI’s transformative role in drug development, safety, and regulatory compliance.

Policy Challenges & Regulatory Reforms

Despite growth, foreign investors remain cautious due to Pakistan’s complex regulatory environment. DRAP Act 2012, Drug Pricing Policy 2018, and overlapping legal frameworks have hindered investment. The Pakistan Business Council and Pharma Bureau stress the urgency of regulatory reform and alignment with international benchmarks to attract foreign players.

Game-Changer: Digital Pharmaceutical Certificate

In a significant breakthrough, Pakistan Single Window and DRAP launched the Digital Certificate of Pharmaceutical Product, transitioning from manual paperwork to a secure, verifiable digital system for cross-border trade. This will enhance documentation transparency and streamline exports.

Collective Manufacturing Model: Dawaa-Pak Initiative

To empower smaller pharma firms and boost exports, a proposed Collective model, tentatively named Dawaa-Pak, envisions 50 manufacturers under one export brand. The Collective would handle:

  • Compliance with export conditionalities
  • Workforce training and management development
  • Liaison with regulators
  • Common raw material procurement
  • Export order fulfillment and international exhibitions

Under this model:

  • 80% of profits go to member firms
  • 10% to an escrow fund
  • 7% max allocated to administration

Single-brand exhibitions across Africa, Sri Lanka, and Central Asia would be organized to increase visibility and sales.

Bioequivalence & Capacity Building

Pakistan lacks international-standard Bioequivalence Centers, a major hurdle for rapid drug registration. Countries like India and Bangladesh provide financial support for such studies, whereas Pakistani companies face infrastructural, financial, and export logistics challenges, especially with frequent border closures with Afghanistan and CIS countries.

Conclusion: The Road to $1 Billion

To sustain momentum, Pakistani pharmaceutical manufacturers must adopt a holistic export strategy, align with international regulatory frameworks, reduce dependence on imports, and support innovation. Government support, favorable policies, and industry-led collectives could make the $1 billion export target a reality within the next few years.