Pharma firms find trade barriers a bitter pill in Pak

Trade barriers are hampering Indian pharmaceutical companies' bid to wrench open the Rs 6,400 crore Pakistan pharmaceutical market.

The industry, under the aegis of the Federation of Indian Chambers of Commerce and Industry (Ficci), has initiated talks with Indian and Pakistan government officials to remove trade barriers between the countries for the drug sector.

The Pakistan pharmaceuticals industry, which is highly import dependent for active pharmaceutical ingredients (APIs), sources huge stock of APIs from developed countries at higher costs. This is despite cheaper and quality products available in neighbouring India.

To meet the high demand for APIs, Pakistan is forced to buy Indian products by paying two or three times more as the goods come through Singapore and Dubai owing to the trade barriers.

Amita Sarkar, additional director, Ficci, said that following a recent Indian industry delegation to Pakistan, organised by Ficci, discussions have been held with government officials.

"We will have another round of discussions with the Indian officials in August, wherein specific sectoral trade relaxation would be discussed," she said.

Habil Korakhiwala, chairman and managing director, Wockhardt Ltd, who was part of the Ficci delegation, said in his meeting with president Musharaff he highlighted the fact Pakistan was paying higher prices for Indian medicines because it was coming through Dubai, Singapore and other countries.

At present, there are over 100 importers and 310 licensed or registered manufacturing units of pharmaceutical products in Pakistan including 27 multinationals that have more than 60 per cent of the market share.

The estimated share of US companies is 20 per cent of registered companies in Pakistan. Approximately one-third of Pakistan's total consumption of pharmaceuticals is imported and is expected to increase further.

Antibiotics is the leading segment in therapeutics categories, followed by vaccines, analgesics, tranquilisers, hormones, blood pressure control drugs, anti-ulcer drugs, cardiac and cancer drugs, psychiatric drugs, contraceptives and birth control prescriptions.

"Indian businessmen also made concrete suggestions to open up trade between the two nations," Korakhiwala added.

A recent survey on the availability of essential drugs in Pakistan conducted by the National Technical Information Service in nine different cities and towns revealed that 47 of 478 essential drugs were not available in the market.

P V Appaji, executive director, Pharmaceutical Export Promotion Council, however, said the council was keen on exploring the market.

"We are planning to take a delegation to Pakistan by the year-end with representatives from major pharmaceutical companies in India. We will also make representations to the Centre to remove trade barriers in wake of the improving relationship between the two countries," he said.

Currently, operations by Indian companies to Pakistan have been restricted to export of only few pharmaceutical products, said an industry analyst.