Local production of medical devices to slash $2bn import bill: TDAP

KARACHI: The economic challenges posed by Covid-19 and Pakistan’s limited capacity to import essential raw materials have forced the country’s scientists and experts to take matters into their own hands, leading to significant strides in the local production of crucial medical devices, which can slash the country’s 2 billion import bill, Chief Executive Officer of the Trade Development Authority of Pakistan (TDAP) says.

“Items such as ventilators, dialysis machines, and cardiac stents, previously unavailable within Pakistan, are now being manufactured locally. We believe this development will not only reduce the reliance on imported medical equipment but will also help Pakistan significantly cut its health sector import bill by $2 billion in the next five years,” Zubair Motiwala, CEO of TDAP, said while speaking at the 21st Health Asia exhibition held at Karachi’s Expo Centre on Saturday.

Motiwala praised the country’s progress in manufacturing medical devices and emphasized the need for continuous effort and collaboration among stakeholders to substitute imports and develop an export network for these products. “Pakistan is making remarkable progress in the development and manufacturing of medical devices and equipment, which could not only decrease our import bill but eventually earn foreign exchange by exporting these technological items to other countries,” he noted.

He stressed that by localizing production, Pakistan could significantly strengthen its health sector and gradually reduce its reliance on imports. Motiwala also highlighted the sophistication involved in medical device manufacturing, stating that exporting these items requires stringent testing and standardization before marketing them internationally. He expressed confidence in Pakistan’s potential to expand this sector and urged realistic efforts to capitalize on global markets, much like Pakistan’s success in exporting surgical and pharmaceutical items.

“The TDAP is actively exploring potential sectors to increase Pakistan’s exports, and we must now focus on supporting the health sector in substituting its imports and enhancing its exports. With collaborative efforts, we could see a significant boost in this sector,” he added.

Vice Chancellor of the Shifa Tameer-e-Millat University Prof Iqbal Khan said Covid-19 and the ongoing shortage of dollars presented an excellent opportunity for Pakistani institutions to step up and produce locally-manufactured medical devices. “This crisis has opened doors for academia-industry collaboration, and by working together, we can not only meet domestic demands but also establish Pakistan as a hub for high-quality medical devices globally,” he said.

Omar Ahmed, chairman of the Healthcare Devices Association of Pakistan (HDAP), echoed these sentiments and highlighted the pressing need for government intervention to promote local manufacturing. He noted that around 98% of medical devices in Pakistan were still imported, despite the country having the potential to produce many of these devices locally. “Importers of medical devices have the knowledge and sales distribution networks to transition into manufacturing. However, this requires government support through investor-friendly policies and a level-playing field,” Ahmed explained. He called for the rationalization of the tax regime in the sector, which has become a significant burden on both manufacturers and consumers. He pointed out the impending risk of medical device shortages if regulatory challenges are not addressed. With deadlines for Class A and B device registrations fast approaching in December 2024, a large number of applications remain pending with the Drug Regulatory Authority of Pakistan (DRAP). Failure to extend the registration deadlines could result in device shortages from January 2025, he warned.

Dr Shahid Noor, chairman of the Saman-e-Shifa Foundation, underscored Pakistan’s ability to produce high-tech items like nuclear technology and military aircraft, stressing the potential for similar leadership in medical device manufacturing. “We have successfully developed over 10 medical devices at the local level, including ventilators and cardiac stents, with over 20 additional devices in the pipeline,” he revealed. He urged the government to incentivize the medical device manufacturing sector, proposing a comprehensive policy to reduce the country’s current account deficit by reducing reliance on imports and boosting exports. “The global medical devices market is worth over Rs 1 trillion. If Pakistan captures just 1% of this market, it would provide significant support to our economy,” he added.

Former HDAP president Masood, addressing the challenges ahead, reiterated concerns over the looming deadline for Class A and B device registrations. “If the December 2024 deadline is not extended, Pakistan will face severe shortages of medical devices starting January 2025. We need immediate action to prevent this scenario,” he said and emphasized the need for the government to reduce the sales tax on diagnostic and medical devices to ensure affordable healthcare for patients.

CEO of the Indus Hospital and Health Network Dr Abdul Bari expressed optimism about Pakistan’s future in medical device manufacturing, saying: “The days are not far when all medical devices will be produced locally in Pakistan and exported worldwide.” However, he stressed that this goal would require sincerity, dedication, knowledge, and hard work.

Brig (retd) Tariq Qadir, CEO of the Sindh Integrated Emergency and Health Services (SIEHS), made significant strides towards supporting local production by signing an MoU with the Saman-e-Shifa Foundation to procure locally produced medical devices for their services.

Leaders from various healthcare sectors were present at the conference and agreed that locally manufactured devices could be up to 10 times cheaper and of better quality than imported items. They stressed that exporting these devices could earn Pakistan valuable foreign exchange and establish the country as a competitive player in the global medical technology market. DRAP officials, including Director Dr Saif-ur-Rahman, acknowledged the challenges facing local manufacturers in obtaining regulatory approvals and assured that efforts were underway to streamline the process.

However, he emphasized that collaboration between the industry and regulators would be crucial in overcoming these hurdles.

The 21st edition of the exhibition concluded with over 500 exhibitors from around the world and an estimated 60,000 visitors. The exhibition underscored Pakistan’s remarkable progress in localizing medical device production and highlighted the need for swift policy reforms to support this burgeoning industry.