The manufacturing facilities of pharmaceutical companies in Pakistan are uncompetitive, underutilised and below the industry benchmark. In Pakistan, there is an urgent need to revisit the industry’s regulatory framework in order to unlock the potential of the local pharmaceutical manufacturing sector and gradually increase access to global markets for locally manufactured goods. The government must encourage contract manufacturing and allow companies to outsource manufacturing of medicines, particularly low-priced medicines which, because of price freezes, have, over the years, become unviable to produce.
Contract manufacturing could increase the role of local pharmaceuticals, create job opportunities, accelerate transfer of technology from MNCs to local companies and enable MNCs to utilise their facilities to produce newer drugs. The benefits for contract manufacturing cannot be only viewed in economic terms for the firm or the country but will significantly improve the healthcare facilities for the general population. Outsourcing production would increase the economies of scale, the speed of processes, quality, and reduce initial start-up costs for companies to facilitate the further establishment of businesses. The economy of the country would increase manifold if the government facilitated contract manufacturing. Foreign investment of millions of dollars would flow in and like India Pakistan will be seen as an ideal location for contract manufacturing by MNCs.