Comment by Riaz Haq 6 hours ago

Pakistan Drugmakers Bet $500 Million on Exports as Economy Slows


https://www.bloomberg.com/news/articles/2025-09-24/pakistan-drugmak...


Takeaways by Bloomberg

Pakistani pharmaceutical companies are upgrading factories to tap markets from the Persian Gulf to Europe with a total investment of more than $500 million.
The industry faces rigorous regulations in developed economies and tougher competition as it looks to increase exports and lift the economy.
Pharmaceutical shipments have the potential to reach $5 billion in eight years if the overseas push is successful, according to Javed Ghulam Mohammad.
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Pakistani pharmaceutical companies are racing to retool factories to tap markets from the Persian Gulf to Europe in a bid to boost exports.

More than a dozen companies are upgrading factories with a total investment of more than $500 million to ensure their medications and factories are compliant with overseas regulations, said Javed Ghulam Mohammad, chief executive officer at Martin Dow Group. His company is a member of the Pakistan Pharmaceutical Manufacturers Association, which is backing the effort. The sector’s push comes as the nation looks to increase overall exports to lift the economy.





The industry, which mainly relies on domestic market sales, will face rigorous regulations in developed economies, as well as tougher competition. The South Asian nation, which is struggling with high energy prices amid sluggish growth, has so far failed in its efforts to become a major exporter.


Pharmaceutical industries in India and Bangladesh are models for Pakistan, Mohammad said in an interview at his Karachi headquarters. “If you look at India and Bangladesh for exports, they are very big.”

Pakistan drug exports increased the most in two decades in the fiscal year ending in June, growing 34% to $457 million, according to the association. Pharmaceutical shipments have the potential to reach $5 billion in eight years if the overseas push is successful, Mohammad said. That would make pharmaceuticals among Pakistan’s largest product exports.


The country’s roughly 650 manufacturers serve 250 million people in a $3.2 billion market. It has one of the lowest per capita drug spending in the region, according to Mohammad.

Currency devaluations in recent years, as well as government drug price caps, have dampened profitability, putting some companies at financial risk. While some price ceilings have been lifted, the country’s leading pharmaceutical companies are looking abroad, he said.

Martin Dow, one of Pakistan’s largest pharmaceutical manufacturers, has seen annual sales growth of 20% for five years and acquired the rights to make Roche Holding AG products, slicing its import costs by 50%, he said.

It is investing as much as $30 million to modernize its factories to garner a Good Manufacturing Practice certification and other regulatory approvals. The company, with annual sales of more than $200 million, targets exports to account for half its revenue in five to eight years, compared with 5% currently, Mohammad said.

Martin Dow aims to initially enter less regulatory stringent regions, such as Cambodia, Myanmar and East Africa. After its Karachi upgrades are completed in 2027, it will eye more challenging markets, including Europe and the Middle East, he said.

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