PAKISTANI DRUG EXPORTERS TO FAVOUR INDIAN RAW MATERIALS
Drug producers in Pakistan have urged India to relax "stringent"
border rules. The calls, which come from a leading industry source, reportedly
follow quality problems with imported production machinery and raw materials
Pakistan's 316 drug manufacturers are jealously eyeing India's world-class generics export industry, as their domestic market continues to mature. A number of Indian firms have also entered Pakistan in the wake of the new patent law and tough price pressures at home as have US multinationals, which are also expanding their local footprint.
The potential reorientation in Pakistan's international focus towards India is significant for the country's drug industry. A change of supply chains away from China suggests that Pakistani drugmakers are aware that competitive advantage will only be achieved through technical superiority in high-volume products something that the rapidly-contracting Chinese industry is currently unable to provide. Meantime, Pakistan has now removed sales taxes on active ingredients, potentially boosting imports from India.
Meanwhile, in July, a delegation of Pakistani drug industry representatives visited the high-growth ex-Soviet Central Asian countries of Kazakhstan, Azerbaijan, Turkmenistan and Uzbekistan. If current industry strategy succeeds, Pakistan will hope to have established a viable, competitive generics industry in regions bordering the US$20bn Chinese market.