Pakistani pharmaceutical industry

The rapid rise of local manufacturers has reshaped the market dynamics, but it has also introduced challenges, particularly around product quality and regulatory oversight. Multinational Companies (MNCs) dominated Pakistan’s pharmaceutical market for decades, initially controlling nearly 95% of the market. They helped establish the pharmaceutical industry in Pakistan and played a key role in technology transfer, which was beneficial for local industry growth. As local pharmaceutical companies grew in size and capability, they started to dominate the market, accounting for 75% of the market share as of 2024. The presence of multinational companies has now shrunk, with only 21 MNCs remaining, and only four of them have manufacturing plants in Pakistan. One of the key challenges faced by MNCs was the government’s price control policy, which favored affordability over quality. The multinational firms, represented by the Pharma Bureau, have long advocated for prioritizing quality control over price regulation, especially for essential medicines. Due to the government’s regulatory policies and local competition on pricing, many multinational companies scaled back operations in Pakistan. Some were bought out by local firms, while others shut down manufacturing facilities and limited their operations to marketing and distributing imported products. Some local companies have formed partnerships with foreign pharmaceutical companies, gaining access to advanced research and regulatory frameworks. These companies have been able to maintain a strong reputation for quality and reliability, offering competitive products in the market. However, a significant portion of the local pharmaceutical industry does not meet the high-quality standards set by multinational companies, which poses a risk to consumer safety. The recent recall alert by DRAP highlights these concerns. The Drug Regulatory Authority Pakistan (DRAP) has recently issued a recall of several substandard and falsified pharmaceutical products following reports from health authorities that some medicines failed to meet quality standards. The recall is a direct response to findings from drug testing laboratories in Lahore and Rawalpindi that revealed impurities in the products. The use of substandard medicines poses significant risks to patient health, especially for vulnerable groups. While DRAP is taking corrective actions like recalling unsafe products, there is a need for a more robust and ongoing regulatory framework. The current system seems to rely on reactive measures (e.g., product recalls), which are insufficient for ensuring consistent product quality and safety in the long term. A major challenge for local companies is the lack of investment in research and development (R&D). Without R&D, local companies cannot consistently match the innovation and quality standards set by multinational firms. This gap in technological advancement and quality control poses a risk to public health. There is an evident need for DRAP to develop a more proactive, continuous, and comprehensive regulatory approach that focuses not only on immediate actions like product recalls but also on long-term industry reforms. The local pharmaceutical industry has clearly shown its potential to grow and meet domestic demand. However, for it to truly thrive and compete on a global scale, it must address quality concerns and invest in R&D. DRAP needs to collaborate closely with the pharmaceutical industry to ensure that regulatory standards are maintained. A more systematic approach to regulation and enforcement will help ensure that the industry continues to grow in a sustainable and safe manner. The shift from multinational companies to local manufacturers in Pakistan’s pharmaceutical market has brought both positive and negative consequences. While local companies have gained market share, issues with product quality and regulatory oversight remain significant challenges. DRAP’s recent actions to recall substandard products are a step in the right direction. Only with stronger regulatory controls, better research, and a focus on quality can the Pakistani pharmaceutical industry continue to grow and safeguard public health effectively.