THERE is an alarming increase in the exit of multinational pharmaceutical companies from Pakistan. In less than a decade, 12 multinational companies have ceased operations in Pakistan, while the remaining 24 MNCs have reduced considerably their manufacturing operations owing to inefficient capacity utilisation.

In statistical terms, the exit of the pharmaceutical company sends huge investment down the drain and creates a gap of some $18 million in the medicinal market, while affecting more than 1,000 households directly in the form of unemployment, job insecurity and unused capacity.

In contrast, India’s pharmaceutical industry is booming. The Indians have invited Japanese pharmaceuticals to set up their production units in India, which has become an ideal choice for MNCs to set up ventures, either wholly owned or in partnership with Indian companies.

In Pakistan most of the manufacturing and production facilities are underused and have become non-competitive in relation to the industry benchmark in the region.

Being on the verge of total collapse, our pharmaceutical industry needs government support more than it did so in the past.

Syed Ovais Akhtar

Karachi

Published in Dawn, February 27th, 2017