Pakistani pharmaceutical companies are investing over $500m to upgrade their factories to tap export markets from the Persian Gulf to Europe, as the domestic economy slows, Bloomberg has reported. More than a dozen Pakistani pharmaceutical companies are retooling their facilities to ensure their medications and factories comply with overseas regulations, said Javed Ghulam Mohammad, chief executive officer of Martin Dow Group and a member of the Pakistan Pharmaceutical Manufacturers Association, which is backing the effort. The sector's push comes as the nation looks to increase its overall exports to lift the economy. The industry, which mainly relies on domestic sales, will face rigorous regulations and tougher competition in developed economies. "If you look at India and Bangladesh for exports, they are very big," Mohammad said in an interview, citing them as models for Pakistan. Pakistan's pharmaceutical exports recorded their fastest growth in two decades in the 2024 fiscal year, rising 34% year-on-year to $457m, according to the association. Mohammad said that pharmaceutical shipments have the potential to reach $5bn in eight years if the overseas push is successful, which would make them one of Pakistan's largest export products. Afghanistan, the Philippines, Sri Lanka, Uzbekistan, and Iraq are among the major buyers of Pakistani medicines, whileKenya, Vietnam, Myanmar, and Thailand also have potential for significant exports, according to a Business Recorder report. The country's roughly 650 Pakistani pharmaceutical companies serve a population of 250 million in a $3.2bn market. Currency devaluations and government drug price caps have dampened profitability, prompting the country's leading pharmaceutical companies to look abroad, Mohammad said. Martin Dow, one of Pakistan's largest pharmaceutical manufacturers with annual sales of more than $200m, is investing up to $30m to modernise its factories to garner a Good Manufacturing Practice (GMP) certification and other regulatory approvals. The company targets exports to account for half its revenue in five to eight years, compared with 5% currently, Mohammad said. Martin Dow aims to initially enter less stringent regulatory regions, such as Cambodia, Myanmar, and East Africa. After its Karachi upgrades are completed in 2027, it will eye more challenging markets, including Europe and the Middle East, he said.
