Pakistan’s pharma exports increase 23pc to $68.1mln in Q1

KARACHI: Pakistan’s pharmaceutical exports rose around 23 percent year-on-year to $68.1 million during the first quarter of the current fiscal year of 2020/21, the commerce adviser said on Monday, indicating that the industry flourished on the back of growing demand of healthcare products amid the coronavirus pandemic.

“Our pharmaceutical exports have gotten off to a good start this year,” Razak Dawood, adviser for commerce and investment said in a tweet. “In value terms, our exports have grown by 22.6 percent in the first quarter to $68.1 million as compared to $55.6 million in the corresponding period last year.”

The outbreak of COVID-19 has rattled global economy for six months since March. Pakistan slapped lockdown in late March to prevent the contagion. However, lack of coordination between the federal and provincial governments aggravated uncertainty of businessmen with incoherent shutdown leading to adverse losses to the domestic economy.

Exports rebounded in September after a double-digit fall in August as lifting of lockdown led to clearance of export orders in backlog and economic activities were seen adjusting to the new normal.

Exports showed first recovery in July after consecutive downtrends since March amid coronavirus lockdown. Ease in lockdown paved way for clearance of orders stuck on ports.

Pakistan’s economy that was already tottering before the coronavirus was further mauled by monthslong lockdown. The growth is expected to recover this fiscal year compared to 0.4 percent contraction in the previous fiscal year.

Exports continued to show contraction since the government took charge. Trade deficit narrowed 27.1 percent to $23.1 billion in the last fiscal year of 2019/20, but the reduction was mainly caused by suppressing imports rather than export sector’s recovery. Exports declined 6.8 percent to $21.3 billion, whereas imports sharply fell 18.6 percent to $44.5 billion during the last fiscal year.

Pharmaceutical industry that had been exempted from the shutdown orders thrived during the period as demand of medicines increased manifold. “All this has been due to the hard work our pharmaceutical exporters and renewed focus on exports,” Dawood said.

However, analysts said the country is still spending a lot of foreign reserves on imports of active pharmaceutical ingredients. Pakistan imports active pharmaceutical ingredients in bulk quantity from China, South Korea and India with local contribution standing less than 10 percent. The imports needed to formulate medicines are estimated at $2 billion a year. Pakistan has more than 750 registered pharmaceutical companies, of which 25 are multinationals accounting for the market share of 45 to 50 percent. The top-100 companies including the local ones hold 97 percent of market share.