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Business Recorder
03-05-2025
- Business
- Business Recorder
BMP suggests uniform 1pc sales tax rate on all medicines
LAHORE: As the federal government enters the final phase of preparing the federal budget for 2025–26, the Federation of Pakistan Chambers of Commerce and Industry's (FPCCI) Businessmen Panel (BMP) has strongly urged the government to eliminate tax discrimination between different categories of medicines. The panel called for applying a uniform 1% sales tax rate on all medicines—whether allopathic, homeopathic, or herbal—to ensure fairness, accessibility, and consistency in healthcare taxation. The issue was discussed in detail during the meeting between Mian Anjum Nisar and a delegation from the Homeopathic Pharmac eutical and Chemist Association Pakistan (HPCA), who met him in the lead of Dr. Amanullah Bismil, Patron-in-Chief of the HPCA. The delegation included Dr. Ahsan Waris, Dr. Iqbal Hanif, Dr. Kashif Masood, and Saifurrahman Safi. The representatives shared their concerns regarding the unequal taxation structure, highlighting how it discourages the growth of the alternative medicine industry and limits consumer access to affordable treatment options. Chairman of the Businessmen Panel and former FPCCI president Mian Anjum Nisar pointed out that a significant disparity currently exists in the taxation system governing pharmaceutical and health-related products. Allopathic medicines—conventional pharmaceutical drugs—are taxed at a concessional rate of 1%, while homeopathic and herbal medicines are subject to a hefty 18% general sales tax (GST). This difference, he argued, is unjust and harmful, creating a disproportionate burden on consumers and manufacturers of non-allopathic medicines. 'The current tax system promotes inequality within the healthcare sector,' Anjum Nisar said. 'On the one hand, the government claims to prioritize public health and affordability; on the other hand, it penalizes manufacturers and users of homeopathic and herbal medicines with an unjustifiable tax rate. This contradictory policy undermines equitable healthcare access.' Dr. Bismil explained that the issue stems from outdated provisions in the Eighth Schedule of the Sales Tax Act, 1990, particularly Entry No. 81, which only refers to drugs registered under the now-repealed Drugs Act of 1976. That Act has since been replaced by the Drug Regulatory Authority of Pakistan (DRAP) Act, 2012, which regulates all therapeutic goods—allopathic, homeopathic, herbal, and nutraceutical. According to Section 32 of the DRAP Act, its provisions take precedence over earlier or conflicting laws. However, the sales tax framework has not been updated to reflect this change, resulting in a legal loophole that excludes non-allopathic medicines from receiving the same tax relief as allopathic drugs. Dr. Bismil urged the Ministry of Finance and the Federal Board of Revenue (FBR) to address this gap by amending the Eighth Schedule so that all DRAP-registered medicines are treated equally under the tax regime. He stressed that the amendment should be included in the Finance Bill 2025–26 and take effect from July 1, 2025. 'This is the ideal time to correct this policy anomaly,' said Dr. Bismil. 'As budget preparations are underway, the government must take this opportunity to demonstrate its commitment to inclusive healthcare, fair taxation, and support for local industries.' Anjum Nisar supported the delegation's demands and assured them he would take the issue to the highest level to seek a resolution. He emphasized that millions of Pakistanis—especially those in rural areas and low-income groups—rely on homeopathic and herbal treatments. By taxing these products at a higher rate, the government is restricting access for the underprivileged and effectively pushing patients toward more expensive alternatives. He further highlighted the economic potential of the alternative medicine sector, which has demonstrated remarkable resilience despite facing regulatory neglect and tax pressures. 'Pakistan has a rich heritage in traditional medicine systems, including homeopathy, Unani, and herbal formulations,' he said. 'If supported through progressive policy and tax fairness, these industries can contribute billions to the national economy and expand into export markets across the Middle East, Africa, and Asia.' Anjum Nisar added that a uniform 1% tax rate across all medicines would promote transparency, compliance, and a healthier business environment. It would allow all sectors of the healthcare industry to grow side by side, encouraging innovation and ensuring that patients have access to diverse treatment options at fair prices. He warned that maintaining the current dual tax system would continue to distort the market, discourage formalization, and hurt small- and medium-sized enterprises (SMEs) that make up the bulk of the homeopathic and herbal medicine industry. 'This is not just a tax issue—it's a healthcare issue and an economic opportunity,' Nisar concluded. 'The government must seize this moment to harmonize the taxation structure, promote equity in healthcare, and support the broader goal of industrial development in Pakistan.' Copyright Business Recorder, 2025
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First Post
28-04-2025
- Business
- First Post
Water, medicines, fertiliser: Pakistan in panic mode as India tightens screws after Pahalgam attack
India's suspension of the Indus Waters Treaty, halt of all trade and ban on pharmaceutical supplies following the Pahalgam terror attack has triggered panic in Pakistan. With critical sectors like farming and healthcare under threat, Pakistani authorities are scrambling to find alternative supply sources. read more The decision by India to suspend the World Bank-mediated Indus Waters Treaty of 1960 — which ensures water for 80% of Pakistani farms — halt all trade and ban pharmaceutical supplies in response to the Pahalgam terror attack that killed 26 people last week, has panicked Pakistan, prompting it to initiate emergency measures, including approaching other countries for supplies and seeking mediation to ease tensions. The move has escalated tensions between the two countries. India has closed the Attari-Wagah border, effectively putting on hold cross-border trade worth Rs 3,886.53 crore between India and Pakistan. STORY CONTINUES BELOW THIS AD According to a media report, Pakistani health authorities have initiated 'emergency preparedness' measures to secure pharmaceutical supplies in response to the suspension of trade ties with India. 'Following the 2019 crisis, we had started preparing for such contingencies. We are now actively looking at alternative avenues to meet our pharmaceutical needs,' the report quoted a senior Drug Regulatory Authority of Pakistan (DRAP) official as saying. Although direct trade between India and Pakistan remains limited, goods worth nearly $10 billion reach Pakistan through indirect channels every year, according to estimates by the Global Trade Research Initiative (GTRI). Currently, Pakistan relies on India for 30% to 40% of its pharmaceutical raw materials, including Active Pharmaceutical Ingredients (API) and various advanced therapeutic products. With this supply chain disrupted, DRAP is now seeking alternative sources from China, Russia, and several European countries. 'We'll die of hunger' Spraying pesticides on his parched vegetables one street away from the Indus River, Pakistani farmer Homla Thakhur is worried about his future. The sun is at its peak, the river is running very low, and India has vowed to cut supplies upstream after the deadly militant attack in Kashmir. 'If they stop water, all of this will turn into the Thar desert, the whole country,' said Thakhur, 40, before heading back to the river to refill the tank for the spray gun. 'We'll die of hunger.' His nearly 5-acre (2-hectare) farm is located in the Latifabad area of the southeastern province of Sindh, from where the Indus flows into the Arabian Sea after originating in Tibet and snaking through India. STORY CONTINUES BELOW THIS AD Thakhur's fears were echoed by more than 15 Pakistani farmers and several other experts, especially as rainfall has been scant in recent years. For the first time, India on Wednesday suspended the Indus Waters Treaty, saying it would last until 'Pakistan credibly and irrevocably abjures its support for cross-border terrorism'. With inputs from agencies.
The Hindu
27-04-2025
- Health
- The Hindu
Pakistan initiates 'emergency' steps to secure drug supplies after trade suspension with India
Pakistani health authorities have initiated "emergency preparedness" measures to secure pharmaceutical supplies in response to the suspension of trade ties with India, according to a media report on Saturday (April 26, 2025). In response to the India's decision to suspend the Indus Water Treaty following the Pahalgam attack, Islamabad on Thursday suspended all trade with New Delhi among other moves. Geo News reported that India trade halt triggered "urgent measures to secure" pharmaceutical needs in Pakistan and health authorities have initiated "emergency preparedness" measures to secure the supplies. The Drug Regulatory Authority of Pakistan (DRAP) has confirmed that while there has been no formal notification regarding the ban's impact on the pharmaceutical sector, contingency plans are already in place, it said. "Following the 2019 crisis, we had started preparing for such contingencies. We are now actively looking at alternative avenues to meet our pharmaceutical needs," the report quoted a senior DRAP official as saying. Currently, Pakistan relies on India for 30% to 40% of its pharmaceutical raw materials, including Active Pharmaceutical Ingredients (API) and various advanced therapeutic products. With this supply chain distributed, DRAP is seeking alternative sources from China, Russia, and several European countries. The agency aims to ensure the continuous availability of essential medical supplies, including anti-rabies vaccines, anti-snake venom, cancer therapies, monoclonal antibodies, and other critical biological products. While DRAP's preparedness offers some reassurance, industry insiders and health experts have warned of a looming challenge if immediate action is not taken to manage the fallout of the trade suspension. "Pakistan imports some 30%–40% of its pharmaceutical raw material from India. We also import finished products, most importantly, anti-cancer therapies, biological products, vaccines, and sera, especially anti-rabies vaccine and anti-snake venom from India," a senior official from the Ministry of National Health Services, Regulations and Coordination said, requesting anonymity. The Ministry of Health has yet to receive an official directive clarifying the status of pharmaceutical imports, despite the government's blanket announcement suspending all trade with India. The pharmaceutical sector fears that disruption in the supply chain could lead to critical shortages. The situation is further complicated by the existence of a robust black market, where unregistered and unapproved medicines — many of Indian origin — are smuggled into Pakistan through Afghanistan, Iran, Dubai, and even across the eastern border, the report said. While these channels fill gaps left by legal imports, they offer no guarantee of quality or consistent supply. A delegation of pharmaceutical industry leaders travelled to Islamabad on Thursday to appeal for an exemption from the trade ban. "We had meetings with DRAP and Ministry of Commerce officials to discuss the suspension of trade ties. We urged them to exempt the pharmaceutical sector from the ban, as there are many life-saving products whose raw materials come exclusively from India," said Tauqeer-ul-Haq, Chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA). The PPMA delegation also approached the Special Investment Facilitation Council (SIFC), arguing that pharmaceutical and health-related trade must be excluded from the ban to protect patients' lives.
India Today
26-04-2025
- Health
- India Today
Pakistan takes 'emergency' steps for pharma supplies after India halts trade
Pakistani health authorities have initiated "emergency preparedness" measures to secure pharmaceutical supplies in response to the suspension of trade ties with India, according to a media report on response to India's decision to suspend the Indus Water Treaty following the Pahalgam attack, Islamabad on Thursday suspended all trade with New Delhi, among other News reported that India trade halt triggered "urgent measures to secure" pharmaceutical needs in Pakistan and health authorities have initiated "emergency preparedness" measures to secure the The Drug Regulatory Authority of Pakistan (DRAP) has confirmed that while there has been no formal notification regarding the ban's impact on the pharmaceutical sector, contingency plans are already in place, it said."Following the 2019 crisis, we had started preparing for such contingencies. We are now actively looking at alternative avenues to meet our pharmaceutical needs," the report quoted a senior DRAP official as Pakistan relies on India for 30% to 40% of its pharmaceutical raw materials, including Active Pharmaceutical Ingredients (API) and various advanced therapeutic this supply chain distributed, DRAP is seeking alternative sources from China, Russia, and several European agency aims to ensure the continuous availability of essential medical supplies, including anti-rabies vaccines, anti-snake venom, cancer therapies, monoclonal antibodies, and other critical biological DRAP's preparedness offers some reassurance, industry insiders and health experts have warned of a looming challenge if immediate action is not taken to manage the fallout of the trade suspension."Pakistan imports some 30%–40% of its pharmaceutical raw material from India. We also import finished products, most importantly, anti-cancer therapies, biological products, vaccines, and sera, especially anti-rabies vaccine and anti-snake venom from India," a senior official from the Ministry of National Health Services, Regulations and Coordination said, requesting Ministry of Health has yet to receive an official directive clarifying the status of pharmaceutical imports, despite the government's blanket announcement suspending all trade with pharmaceutical sector fears that disruption in the supply chain could lead to critical situation is further complicated by the existence of a robust black market, where unregistered and unapproved medicines are smuggled into Pakistan through Afghanistan, Iran, Dubai, and even across the eastern border, the report these channels fill gaps left by legal imports, they offer no guarantee of quality or consistent supply.A delegation of pharmaceutical industry leaders travelled to Islamabad on Thursday to appeal for an exemption from the trade ban."We had meetings with DRAP and Ministry of Commerce officials to discuss the suspension of trade ties. We urged them to exempt the pharmaceutical sector from the ban, as there are many life-saving products whose raw materials come exclusively from India," said Tauqeer-ul-Haq, Chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA).advertisementThe PPMA delegation also approached the Special Investment Facilitation Council (SIFC), arguing that pharmaceutical and health-related trade must be excluded from the ban to protect patients' some experts see the current crisis as a wake-up call for long-term investment in local production of APIs, vaccines, and biologicals."This crisis could be a turning point for Pakistan," said Zafar Iqbal, a senior public health opened fire in Jammu and Kashmir's Pahalgam on Tuesday, killing 26 people, mostly tourists, in the deadliest attack in the Valley since the Pulwama strike in 2019. The Resistance Front (TRF), a proxy of the banned Pakistan-based Lashkar-e-Taiba (LeT), claimed responsibility for the Reel
Mint
26-04-2025
- Business
- Mint
Pakistan takes ‘emergency' steps to secure drugs after India trade halt post Pahalgam terror attack: Report
In the wake of India's suspension of the Indus Water Treaty following the Pahalgam terror attack, Pakistan has retaliated by halting all trade with New Delhi. This abrupt cessation has prompted Pakistani health authorities to initiate 'emergency preparedness' measures to safeguard pharmaceutical supplies, as the country relies on India for 30–40% of its pharmaceutical raw materials, including Active Pharmaceutical Ingredients (APIs) and advanced therapeutic products. The Drug Regulatory Authority of Pakistan (DRAP) has confirmed that contingency plans are in place, though no formal notification has yet been issued regarding the ban's impact on the pharmaceutical sector. DRAP officials stated that preparations for such disruptions began after the 2019 crisis, and they are now actively seeking alternative sources from China, Russia, and several European nations in order to maintain the supply of essential medicines, such as anti-rabies vaccines, anti-snake venom, cancer therapies, and monoclonal antibodies. Despite these efforts, industry insiders and health experts warn of significant challenges ahead if immediate action is not taken. The Ministry of Health has yet to receive an official directive clarifying the status of pharmaceutical imports, and there are growing fears of critical shortages within the sector. The situation is further complicated by a thriving black market, where unregistered and unapproved medicines-often of Indian origin-are smuggled into Pakistan via Afghanistan, Iran, Dubai, and across the eastern border. While these illicit channels fill gaps left by legal imports, they provide no assurance of quality or reliability. In response, a delegation from the Pakistan Pharmaceutical Manufacturers Association (PPMA) has appealed to authorities in Islamabad for an exemption from the trade ban, arguing that many life-saving products depend exclusively on Indian raw materials. The PPMA has also approached the Special Investment Facilitation Council (SIFC), urging that pharmaceutical and health-related trade be excluded from the ban to protect patients' lives. Some experts suggest that this crisis could serve as a catalyst for Pakistan to invest in domestic production of APIs, vaccines, and biologicals, thereby reducing future reliance on foreign suppliers. First Published: 26 Apr 2025, 10:41 PM IST
