2 days ago
- Business
- Business Recorder
USA tariff opens up new pharma export avenues
KARACHI: Pakistan's pharmaceutical sector foresees a window of opportunity to enhance its exports manifolds to the United State of America (USA) after announcement of new tariff policy for various countries which provides a competitive edge to Pakistan against neighbouring economies.
Pakistan has been imposed a tariff of 19 percent for exporting its goods to the United States of America as compared to 25-50 percent or varying for India and up to 50 percent for China.
'Current favourable tariff structure presents an excellent opportunity for Pakistan's pharmaceutical sector to explore the USA market and earn valuable foreign exchange for the country. However, joint efforts are required to get regulatory approvals from the USA authorities,' said Shahzad Haider a healthcare sector expert and financial advisor.
Pakistan's pharma sector export growth hits two-decade high
He informed that India and China are two major importers of the medicines of the US market, hence, higher duties on these countries will create a significant room for other countries, including Pakistan to enhance their exports manifolds in the next few years.
Data stated that the export of Indian pharmaceutical brands to the USA market stood at more than $8.5 billion and Chinese products stood at over $2.5 billion in 2024. In addition to a competitive advantage of tariff, the USA is presently facing depleting stocks of medicines in its healthcare industry which portraying an immense hike of demands for certain medicine in a major market of the world.
'It is right time that the government and all stakeholders of the pharmaceutical sector should set a roadmap to enter the USA market with its different products and enhance its exports to manifolds with respect to the demand of buyers,' Haider added.
He mentioned that Pakistan could leverage its strengthening diplomatic ties with the US and work with its drug regulatory authority for bridging the supplies gap of medicines to its healthcare and wellness sector up to its standards.
Pakistani products are capable of meeting the standards of the USA market depending upon the certification from the regulatory authority, Shahzad Haider said. However, Pakistani companies could meet supplies to the US market in a limited quantity due to its capacity constraints, he mentioned.
He further said that long-term agreement with the US markets will lead to expansion of Pakistani pharmaceutical units that will attract foreign and domestic investment within the sector, he added.
Considering the demands of the USA market, Haider said that, Pakistani pharmaceutical exporters could double the exports of the country within next two years but they require strict adherence to the US Food and Drug Administration (FDA) standards, investment in modern manufacturing facilities, and certification from international regulatory bodies.
Dr Kaiser Waheed, former Chairman Pakistan Pharmaceutical Manufac-turers Association (PPMA) said that Pakistan is exporting herbal medicines to the USA market but its quantity could be increased manifold.
He mentioned that a number of Pakistan's pharmaceutical products with recognition of the global drug authorities could also explore export potential in the USA market depending upon the approval of the (Food and Drug Administration FDA).
He pinned hope that the improving bilateral diplomatic and trade between the USA and Pakistan may help Pakistan's pharmaceutical industry to make inroads in the US market within the next few months.
According Pakistan Bureau of Statistics, overall exports of medicines from Pakistan grew by 34 percent to $457 million during FY25the highest ever growth in terms of percentage marking a 20-year high due to deregulation of the sector and innovation. At present, Pakistan exports medicines to 70 countries worldwide in Europe, USA, Central Asia, Africa and other countries.
Copyright Business Recorder, 2025
