The Pharmaceutical Market: Pakistan

Summary

Healthcare in Pakistan is still in the early stages of development. Widespread poverty and a weak health system underlie the poor health status of the population. Government funding continues to be minimal, equal to around 3% of GDP and achieves little more than maintaining the status quo, while the problems of poor nutrition and sanitation are compounded by Pakistan's large and fast growing population. However as the economy improves, the level of spending may well begin to rise. Other issues at the heart of the problem include the continuing prevalence of communicable diseases, low health manpower levels and the under-utilisation of primary health facilities.

At the time of writing, the country was under 'emergency rule' and political and social turmoil had gripped the nation. A general election is scheduled for January 2008, but the house arrest of opposition leader Benazir Bhutto, the prevalent violence and the ongoing anti-government demonstrations across Pakistan, have drawn criticism from around the world, piling the pressure on President Musharraf to resolve the crisis or stand down. This has already led to consequences for the economy and until a semblance of order is restored, the situation remains precarious.

The Pakistani pharmaceutical market remains beset with difficulties. Strict government control over pricing has made many drugs uneconomical, with the result that they either become available only on the black market at inflated prices, or disappear completely. In this environment, manufacturers, both local and foreign-owned, have proved unable to generate the profits needed for capital investment. This is not helped by a regulatory system best described as rudimentary. There is virtually no public drug reimbursement or IP protection; patent law was officially tightened in December 2000, although the effectiveness of this has been questioned. In 2002, further changes were made, making Pakistan's IP laws even weaker. The appointment of drug inspection teams to investigate the manufacture and sale of 'fake' drugs has met with disappointing results so far, largely due to a lack of resources and bureaucratic complications.

Drug prices are officially controlled, although the government lacks the capacity to enforce its policies in this area. Some price rises have been allowed since 2000, but the current government shows little sign of enacting any serious reform of the pharmaceutical sector, preferring to allege profiteering on the part of the pharmaceutical industry.

Espicom's in-depth pharmaceutical market reports are ideal for executives wanting to understand the key drivers in pharmaceutical markets and have access to a wealth of statistical data. Each report opens with an outlook section that provides analysis of the market, 5-year market forecasts, national data projections, market outlook and key developments such as regulation, pricing/reimbursement, intellectual property, health facilities and government policy. The report also provides extensive background information, population trends, health status, health expenditure, organisation & administration, hospital services, medical personnel, healthcare development, market access information, trade data for raw materials and finished products and essential industry contacts. Included with the report are 3 free quarterly updated outlook reports, enabling you to keep up to date with market developments for a year.

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