Pak Mnc Lobby Stalls Import Of Indian Drugs

The Pakistani drug industry consists mainly of formulators who import bulk drugs and intermediaries from the West, China and India.

Though Indian imports are substantial, the exact quantity is unknown because the imports are carried out through third countries after removing the Made in India tag.

Drug firms representatives and commission agents from Pakistan were seen thronging the Indian stalls at the World Pharma fair here looking for bargain deals to place orders on bulk drugs for delivery via third countries.

About 200 Pakistani formulators approached their government early this year seeking permission for direct imports from India but this move was defeated by agents of multinationals, who receive higher commissions based on the high prices charged by western firms, and Hong Kong and Dubai based agents of Indian and Chinese firms.

 

According to Khalid Mohammed, Managing Director of Getz Pharma, a formulator, retail pharma prices in Pakistan are four to five times more

than that in India for the same drug.

For example, the anti-inflammatory drug, Brufen, produced by multinational Ciba Geigy, costs Rs 3 in India while it is priced at Rs 13 in Pakistan.

The difference is due to the availability of cheap bulk drugs in India.

Indias price control mechanism also ensures that essential drugs are available at economical rates to the consumer.

In Pakistan, a price control mechanism exists only on paper, the real determinant of drug prices being market forces.

Since most formulations have to be imported, the cost of finished drugs is very high.

Seventy-five per cent of Pakistans bulk drugs requirements are imported to produce formulations worth $10 million a year.

An additional $8 million of finished drugs are purchased from abroad.

Indian bulk drugs and formulations are very popular but since the government does not allow direct imports, these have to be surreptiously brought in by rerouting the cargo via Dubai, Singapore and China.

Chinese companies have lately been making purchases from Bombay and Gujrat, changing the labels at sea and sending them to the Karachi port, reaping heavy gains in the process.

According to Rashid Masood, a formulator of anti-biotics, the political decision to ban drug imports from India is harming both the Pakistani drug industry and the consumer.

Since raw material are very expensive, the finished product is often priced beyond the reach of the middle class.

Public health programmes are not taken up adequately due to high medicine costs.

Masood said each time the question of approaching the government for direct Indian imports is raised, the multinationals lobby goes into action and raises the bogey of substandard Indian drugs and the animosity with India.

The same western companies source bulk drugs from India to manufacture formulations for the Pak market.

The truth is that Pakistan needs Indian drugs more than Indian companies want the neighbours market, said Masood.

India has an established market all over the world for its bulk drugs and intermediaries and for formulations in the herbal drugs sector.