The Exit of Multinational Pharmaceutical Companies from Pakistan – Part 3 – Asrar Qureshi’s Blog Post #1293

The Exit of Multinational Pharmaceutical Companies from Pakistan – Part 3 – Asrar Qureshi’s Blog Post #1293

Dear Colleagues! This is Asrar Qureshi’s Blog Post #1293 for Pharma Veterans. Pharma Veterans Blogs are published by Asrar Qureshi on its dedicated site https://pharmaveterans.com. Please email to pharmaveterans2017@gmail.com  for publishing your contributions here.

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Preamble

In the first two parts of this series, we explored the gradual withdrawal of several multinational pharmaceutical companies (MNCs) from Pakistan and examined its consequences for the healthcare ecosystem.

Part 3 of a Three-Part Series

The Great Exit: Can Pakistan Bring Global Pharmaceutical Companies Back?

The departure of research-based multinational companies has raised an important question. 

Can Pakistan once again become an attractive destination for global pharmaceutical investment? The answer is yes, but only if the country addresses several structural challenges and adopts a long-term vision for the pharmaceutical industry. This is no longer simply an industrial policy issue; it is a national healthcare issue.

The Pharmaceutical Industry Is a Strategic Asset

Many countries view pharmaceuticals as a strategic industry. The reasons are obvious. The industry contributes to national health security, high-value manufacturing, scientific research, skilled employment, exports, foreign direct investment, technology transfer, and innovation.

The COVID-19 pandemic reminded governments around the world that dependence on imported medicines and vaccines carries significant risks. Countries with strong domestic pharmaceutical industries recovered more quickly because they possessed manufacturing capacity, scientific expertise, and resilient supply chains.

Pakistan already has many of these strengths. What it needs is an ecosystem that encourages both domestic companies and multinational innovators to invest with confidence.

Learning from Our Neighbors

Several developing countries have faced challenges similar to Pakistan's. Some have responded remarkably well.

India: India transformed itself from a relatively small pharmaceutical market into one of the world's largest producers of generic medicines. Its success was not accidental. The government invested consistently in pharmaceutical education, scientific research, regulatory modernization, export promotion, industrial infrastructure, and international quality standards. Today India supplies medicines to more than 200 countries and hosts extensive research, manufacturing, and clinical trial activities for multinational companies.

Bangladesh: Bangladesh provides another important example. Despite having a smaller economy than many emerging markets, it developed a thriving pharmaceutical sector through supportive industrial policies, investment incentives, and regulatory consistency. Today Bangladeshi pharmaceutical companies export medicines worldwide while simultaneously attracting international partnerships.

Vietnam: Vietnam has become one of Asia's fastest-growing pharmaceutical markets. Success has been driven by economic stability, investor-friendly policies, healthcare expansion, and predictable regulation. Multinational companies increasingly view Vietnam as both a manufacturing base and a commercial market.

Egypt: Egypt has similarly pursued pharmaceutical self-reliance while encouraging international collaboration through regulatory reforms, local manufacturing partnerships, and investment incentives.

Each country's strategy differs but the common denominator is policy consistency. Investors are willing to accept commercial risks; they are less willing to accept policy uncertainty.

Restoring Investor Confidence

If senior executives at multinational pharmaceutical companies were asked why Pakistan has become a difficult market, their concerns would likely extend beyond commercial performance.

Confidence depends on predictability. Investors need confidence that business decisions made today will remain commercially viable tomorrow. Several reforms deserve priority attention.

A Predictable Pricing System – Medicine pricing has remained one of the most contentious issues between industry and regulators. Affordable medicines are essential. At the same time, manufacturers cannot sustainably produce medicines below economic cost. Pakistan should continue protecting patients while developing a transparent, formula-based pricing mechanism that reflects inflation, exchange rate movements, raw material costs, and production economics.

Foreign Exchange Stability – Most pharmaceutical manufacturers depend heavily on imported active pharmaceutical ingredients (APIs), excipients, packaging materials, laboratory equipment, and specialized machinery. Timely access to foreign exchange is therefore essential. When companies cannot pay overseas suppliers or repatriate legitimate earnings, Pakistan's investment risk inevitably rises. Creating a stable mechanism for pharmaceutical imports should be viewed not merely as an economic issue but as a public health priority.

Modernizing Regulation – Pakistan has made important progress through the Drug Regulatory Authority of Pakistan (DRAP). However, continuous modernization remains essential. An efficient regulatory authority should strive to provide timely product registration, transparent approval processes, science-based decision making, internationally harmonized standards, and efficient post-marketing surveillance.

Building a Clinical Research Ecosystem – Perhaps Pakistan's greatest untapped opportunity lies in clinical research. With a population exceeding 250 million, diverse disease patterns, skilled physicians, and internationally trained medical specialists, Pakistan possesses significant potential to become a regional clinical research hub. Yet its participation in global clinical trials remains modest. Expanding clinical research requires internationally accredited research centers, trained investigators, ethical review committees, efficient regulatory approvals, robust patient protection systems, and collaboration between universities, hospitals, regulators, and industry. Clinical trials do much more than generate scientific data. They bring investment, develop expertise, strengthen healthcare infrastructure, and provide patients with access to promising new therapies years before commercial launch.

Strengthening Human Capital

No pharmaceutical industry can outperform the quality of its people. Pakistan has produced outstanding scientists, pharmacists, chemists, physicians, engineers, regulatory professionals, and business leaders. The challenge is retaining talent. Universities should strengthen programs in pharmaceutical sciences, biotechnology, regulatory affairs, clinical research, pharmacovigilance, quality management, and health economics.

Supporting Domestic Champions

Encouraging multinational investment should never come at the expense of Pakistan's domestic pharmaceutical industry. Local companies have earned their success. Many now possess world-class manufacturing facilities and ambitious regional expansion plans. Government policy should therefore aim to strengthen both sectors simultaneously. Domestic companies require export incentives, easier access to capital, research support, international certifications, trade facilitation, and market diversification. The future should not be framed as local versus multinational. It should be local and multinational. Healthy competition benefits patients, healthcare professionals, and the economy alike.

A National Pharmaceutical Vision

Pakistan would benefit from a long-term pharmaceutical strategy extending beyond annual budgets and changing political administrations. Such a vision should include measurable objectives for medicine security, pharmaceutical exports, research investment, clinical trials, biotechnology, regulatory excellence, workforce development, digital health, and international competitiveness.

Countries that succeed in pharmaceuticals typically plan over decades, not election cycles. The returns on pharmaceutical investment are long term. Policies should be as well.

A Balanced Future

The debate surrounding multinational exits sometimes becomes unnecessarily polarized. Some view every departure as evidence of policy failure. Others argue that the success of domestic companies makes multinational participation less important. Neither position reflects reality. Pakistan needs both. Domestic companies provide resilience, affordability, employment, and entrepreneurship. Research-based multinational companies contribute scientific innovation, advanced therapies, clinical research, global partnerships, and technology transfer. The strongest pharmaceutical ecosystems in the world combine both strengths. Pakistan should aspire to do the same.

Sum Up

The recent withdrawal of several multinational pharmaceutical companies marks the end of one chapter in Pakistan's pharmaceutical history. It does not have to define the next one.

The country already possesses many of the ingredients needed for future success: a large and growing population, an experienced pharmaceutical workforce, capable domestic manufacturers, respected medical professionals, expanding healthcare needs, and an entrepreneurial private sector. The task now is to create an environment where innovation is welcomed, investment is protected, regulation is predictable, and collaboration replaces uncertainty.

If Pakistan succeeds, the conversation will shift from "Why are multinational companies leaving?" to "Why are global pharmaceutical companies investing here again?" That transformation will not happen overnight. It will require policy consistency, institutional strengthening, and a shared commitment from government, regulators, industry, academia, and healthcare professionals. 

The reward, however, will extend far beyond corporate investment. It will be measured in better medicines, faster access to innovation, stronger exports, higher-quality jobs, improved scientific capability, and, most importantly, healthier lives for millions of Pakistanis. That is a goal worthy of national ambition.

Concluded.

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