Devaluation of the rupee is a loss for most in Pakistan, however, the Pharmaceuticals industry is certainly suffering. The devaluation of the rupee has a negative impact on the competitiveness of the pharmaceutical industry in Pakistan. Generally, the pharma market in Pakistan is local-market oriented, due to significant barriers of entry to the export market. Hence, devaluation is making pharma products less attractive to foreign purchasers. There are stringent regulations being placed by DRAP in terms of pricing which are somewhat affecting the pharmaceutical negatively.

Reason being, pharmaceuticals cannot meet their expenses from the current pricing structure because of which they are bound to demand an increase in price. These companies also have to import specific active pharma ingredients in order to manufacture medicine. This means it costs more to produce a pill in PKR terms which entail lower margins and lower competitiveness in the market due to devaluation. The decrease and slowing down on competition however, is beneficial to the general public, and to an extent, to the pharma industry. Therefore, having a rate which is feasible for both the industry and public is a better option.

MEHR AFTAB,

Canada, January 19.