The Pharmaceutical Industry in Pakistan

By Amin, Tariq | Economic Review, August 1997 | Go to article overview

The Pharmaceutical Industry in Pakistan


Amin, Tariq, Economic Review


The Pharmaceutical Industry in Pakistan commenced its business operations a few years after the country came into existence. With the passage of time most of the multinational companies began manufacturing activities to cope with the requirement of quality drugs and medicines for the rapidly increasing population in both wings of the country.

Presently the number of registered or licensed manufacturers in the country is close to 300 units out of which are 32 majority control multinationals and there are many joint ventures with foreign collaboration. According to the IMS (International Market Survey) the total pharmaceutical market in Pakistan in 1996 was valued at US$900 million which grew at the rate of 20 per cent in 1996. The total world market for pharmaceuticals is estimated to be about US$248 billion in 1994 out of which North America had a share of 33.5 per cent followed by Europe at 27 per cent and Japan 21.5 per cent. Pakistan's share was about 0.3 per cent. The per capita consumption of pharmaceuticals is about US$4 in Pakistan whereas the average worldwide annual per capita consumption is estimated at US$30 with Japan the highest at US$ 180.

The multinationals have dominated the pharmaceutical market in the country and at one time their share in the overall sales was over 75 per cent. Presently the MNCs have a share of around 60 per cent of the total pharmaceutical market in the country. The MNCs have a strong research base and are one of Pakistan's most important high technology industry. The innovative contribution of this group has added immeasurably to the quality of life of the people of Pakistan.

No other manufacturing industry devotes more resources to R&D annually than the pharmaceutical industry. This rise reflects not only the long-term commitment of the industry in maintaining a strong and competitive research base worldwide, but also the growing intensity of R&D in the human pharmaceutical sector. Recent figures show that while R&D intensity in every major manufacturing industry has shrunk, those reported in the pharmaceutical and the chemical sectors have risen notably.

Pharmaceutical research is essentially a highly risky business. Out of 5000 or so compounds discovered and investigated, on average only one reaches the prescription market. It is estimated that it takes on average 12 years from patent filing to the launch of a major innovative medicine at a total cost of around US$400 million, as compared with US$ 100 million reported in 1985. Even so there is no guarantee of success in a highly competitive market where novel products are constantly and rapidly made obsolete or entirely replaced by new innovations - New Chemical Entities (NCEs).

The MNCs in the pharmaceutical sector are a steady employer of around 3000 people in Pakistan, 75 per cent of whom are skilled and possess high standard of education. Included are hundreds of pharmacists, doctors, including PHDs and engineers, besides other technicians and specialists. it can be safely said that this group supports some 130,000 family members directly and an additional 200,000 people in the ancillary industries. Apart from being a provider of employment the industry contributes substantially to the government its share of various tax revenues and levies and to the central research funds. Most of the drugs and medicines which are needed for the population are produced locally with the exception of certain products like anti-cancer drugs. Since for the purpose of this article the space available is limited, let us confine ourselves to some of the problems that this industry faces.

The pharmaceutical industry has been under strict price control for almost three decades. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Pharmaceutical Industry in Pakistan
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.