|
|
 |
|
Viewing report
|
|
|
|
Pakistan Pharmaceuticals and Healthcare Report Q1 2012
Business Monitor International, Nov 2011, Pages: 98
Business Monitor International's Pakistan Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Pakistan's pharmaceuticals and healthcare industry.
BMI View: Although opportunities to invest in Pakistan have improved during recent years, the business environment still suffers from poor infrastructure and, most problematically, an uncertain security situation that has declined considerably since March 2007. In addition, procurement processes are bureaucratic and often lack transparency, raising the risks of corruption. However, Pakistan does have one of the most liberal foreign investment regimes in South Asia, with a commitment to low tariffs and 100% foreign equity permitted in certain sectors.
Headline Expenditure Projections
- Pharmaceuticals: PKR152.78bn (US$1.79bn) in 2010 to PRK172.86bn (US$1.98bn) in 2011; +13.1% in local currency terms and +10.6% in US dollar terms.
- Healthcare: PKR398.06bn (US$4.67bn) in 2010 to PKR456.48bn (US$5.24bn) in 2011; +14.1% in local currency terms and +12.0% in US dollar terms.
- Medical devices: PKR29.87bn (US$351mn) in 2010 to PKR35.48bn (US$407mn) in 2011; +18.8% in local currency terms and +16.1% in US dollar terms.
Business Environment Rating: In BMI's Asia Pacific BERs for Q112, Pakistan stands in 16th out of the 18 markets in the Asia Pacific matrix, ahead of both Sri Lanka and Cambodia, scoring a total pharmaceutical business environment score of 41 out of a possible 100. The country's greatest asset in the context of the BERs is arguably its high birth rate: a growing population is feeding increased demand for pharmaceuticals. Counterfeit medicines, a lack of transparency in the government's pricing mechanisms and an approval process that is biased towards domestic manufacturers are all factors depressing the market's attractiveness.
Key Trends & Developments
- In August 2011, it was revealed that Pakistan's Drug Registration Board (DRB) has approved the registration of 30 medical devices and 210 medicines after a meeting was held at the request of the country's Prime Minister, who called for the uninterrupted provision of medicines to patients. Products approved for registration included vaccines, biologicals, cancer therapeutics, drugs for the treatment of blood disorders such as thalassaemia, and devices used in cardiac procedures.
- Pakistan's Commerce Ministry is in the process of increasing the number of goods India can export to its neighbour. But some industries such as the local pharmaceuticals industry protested against the increased trade, stating that it would hurt the sales of local drugmakers.
BMI Economic View: Against our expectations for narrowing, recently released data show Pakistan's full-year budget deficit (as a percentage of GDP) widening to 6.6% in FY2010/11 (July-June) from 6.3% in the preceding fiscal year. While we continue to expect fiscal consolidation going forward (as expenditure growth is reined in), our deficit projections remain well above the government's seemingly optimistic outlook given the weakness of revenues. As a result, we remain neutral on long-term government debt.
BMI Political View: Pakistan is at risk of experiencing years of instability and militant activity, but an outright collapse of the state is unlikely unless the core province of Punjab becomes ungovernable. Under such circumstances, we would not preclude a military coup. Meanwhile, due to its strategic importance, Pakistan's foreign allies will do everything they can to ensure its stability.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
