Pakistan’s pharmaceutical industry has emerged among the world’s fastest-growing industries, according to a report issued by IQVIA – an American global IT solution company. In the last four years, Pakistani pharmaceutical companies have shown a cumulative average growth rate or CAGR of 13.1 percent, compared with a CAGR of 9.34 percent of multinationals (MNCs).
Total pharmaceutical sales for the fiscal year ended June 30, 2020, clocked in at Rs453.5 billion, posting a 9 percent raise. Total revenues for the quarter ended on a quarterly basis June 30, 2020, rose 4 percent to Rs111.12 billion clock in. The share of national drug manufacturers in overall sales during the aforementioned era was 68 percent, up 10 percent, while that of foreign.
According to the IQVIA study, growth in pharmaceutical spending continues to slow compared to the past five years and is expected to rise at 5 to 8 percent by 2023. Turkey, Egypt, and Pakistan are also predicted to have the greatest growth in the timeframe from 2019 to 2023.
The study estimated that the global pharmaceutical market will rise above $1.5 trillion by 2023 at a compound annual growth rate of 3 to 6 percent over the next five years – a significant decrease from the 6.3 percent seen over the past five years.
The rate of contraction in the pharmaceutical sector decreased according to the Pakistan Economic Survey 2019-20. It reported a decline of 5.38 percent in FY-2020 during July through March, compared to a decline of 8.66 percent in the corresponding period. Likewise, the industry reported the highest sales in March, while in April 2020 it received $1.3 million in Foreign Direct Investment.
Nonetheless, Financial Year 2020 ‘s preliminary GDP growth rate is forecast at a negative growth rate of 0.38 percent. The Mckinsey & Company described the pharmaceutical industry as a sunrise sector in a study commissioned by Pakistan’s Planning Commission and Asian Development Bank.
