Pakistan exempts pharmaceutical industry from India trade ban

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Men arrange medicine packs on the shelves of a pharmacy in Peshawar, Pakistan May 23, 2018. (REUTERS)
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A man sorts and arranges medicine packs at a pharmacy store in Peshawar, Pakistan March 28, 2019. (REUTERS)
Updated 04 September 2019
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Pakistan exempts pharmaceutical industry from India trade ban

  • Medicines and pharmaceutical raw material embargoed at Karachi port since ban imposed on August 9
  • Around 50 percent of medicines made in Pakistan use raw materials from India

KARACHI/ISLAMABAD: Pakistan’s commerce ministry said on Tuesday it had exempted the pharmaceutical industry from a ban on bilateral trade with India announced last month after New Delhi stripped the disputed Kashmir region of its special status, sparking tensions between the nuclear-armed neighbors.
The ban went into effect on August 9 and since then, consignments of medicines and pharmaceutical raw material have been stuck at the Karachi port, diverted to other destinations or returned to India, raising fears in Pakistan of “acute shortages” of life-saving drugs and vaccines.
Around 50 percent of medicines made in Pakistan use raw materials from India, according to the Pakistan Pharmaceutical Manufacturers Association. Pakistan imports around 150 medicines and vaccines from India each year, data from the Senate Committee on National Health Services shows, and in 2019 alone, according to the Pakistani ministry of health, medicines worth Rs.136,99,87,000 were imported by Pakistan from India.
The commerce ministry confirmed to Arab News on Tuesday that the embargo on the import of medicines and pharmaceutical raw materials from India had been lifted after approval from the federal cabinet.
The confirmation follows a notification dated September 2 in which the commerce ministry said the trade ban “shall not apply to therapeutic products regulated by the Drug Regulatory Authority of Pakistan,” meeting a nearly month-long demand by drug regulators, pharmaceutical companies and associations that represent manufacturers.
Concerns that Pakistan’s drug manufacturers would soon be unable to supply life-saving medicines due to the industry’s dependence on India began emerging soon after the trade ban was imposed.

On August 21, the Pakistan Pharmaceutical Manufacturers Association (PPMA), Drug Regulatory Authority of Pakistan (DRAP), Pharma Bureau and other relevant bodies, as well as representatives of major pharmaceutical companies, held an emergency meeting with Commerce Minister Abdul Razak Dawood and top officials of the ministry of health in Islamabad to discuss the issue of looming shortages.
At least three officials who attended the meeting told Arab News the commerce minister was not in favor of an embargo on pharmaceutical raw materials and medicines, and assured attendees that he would get cabinet approval to lift the ban.
“He reassured us that the pharma industry would be exempted from this ban,” a senior official at DRAP said, declining to be named because all stakeholders who attended the meeting were requested not to speak to the media.
Dawood declined to provide details of the meeting when contacted by Arab News, telling a correspondent via phone: “I don’t deal with India. I don’t know anything about this.”




In a letter dated August 16, the Pakistan Pharmaceutical Manufacturers Association approached the Drug Regulatory Authority of Pakistan for clearance of Indian-origin raw materials and medicines stuck at Karachi port, complaining that even consignments contracted before the trade ban went into effect on August 9 were not being allowed to be offloaded at the port by authorities.

In a letter dated August 16, PPMA approached the drug regulator for clearance of Indian-origin raw materials and medicines stuck at Karachi port, complaining that even consignments contracted and billed before the trade ban went into effect were not being allowed to be offloaded at the port by authorities.
As of Monday, September 1, at least three officials of the PPMA contacted by Arab News said consignments contracted or billed before the trade ban was announced had still not been allowed into Pakistan despite a notification from the commerce ministry that orders completed prior to the ban would not be blocked.
Dr. Tahir Azam, senior vice chairman of the PPMA, said the body was now working round the clock to identify alternate sources of raw material.
But Ayesha Tammy Haq, Executive Director of the Pharma Bureau, which represents multinational pharmaceutical companies in Pakistan, said changing the source of raw material would take a substantial amount of time.
“First you will have to identify the source; that would take at least 2-3 months, then you will have to test the stability of the material,” Haq said. “Stability testing takes minimum 6-8 months and then due to stringent testing of multinational companies, they take, by conservative estimates, from 10-18 months to change source.”

A letter written by the Pakistan Chemists and Druggists Association (PCDA) to the Ministry of National Health Services dated August 16, 2019, named at least ten medicines imported exclusively from India at lower rates.

A letter written by the Pakistan Chemists and Druggists Association (PCDA) to the Ministry of National Health Services last month named at least ten medicines imported exclusively from India at lower rates.
These include: 1) Anti-snake venom serum (Pakistan-specific product only available from India) 2) World Health Organization prequalified vaccines 3) Anti-rabies vaccines 4) Equine anti-thymocyte globulin (only one brand currently available from India) 5) Equine Rabies Immunoglobulin (only one brand currently available from India) 6) Oncology products, including Onco BCG 7) Streptokinase 8) Halothane (only one available brand from India) 9) Recombinant biologicals and fertility hormones 10) and antifungals.
“In the absence of the above products, there will be an absolute chaos. Patients for a majority of the products will have no recourse,” the PCDA letter read. “For other product lines, the alternate products from Europe/United States/stringent regulated markets, are going to be far more expensive that their generics from India.”
“We can import [raw materials] from Europe or American but it would increase the cost almost by ten times,” Pharma Bureau’s Haq said. “Medicines are immune to global political and regional conflicts under the United Nations and should not be subjected to such impacts.”
“I think we, as a country, people and government, must understand that one thing, medicines, should not be touched [in times of conflict] because this is in the larger interest of people,” Haq said. “We all can live without tomatoes but if you are suffering from Tuberculosis, you can’t survive without anti-TB medicine,” she said, referring to a disease whose raw material is imported mainly from India.


Five Japanese workers narrowly escape suicide bombing that targeted their vehicle in Pakistan

Updated 10 sec ago
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Five Japanese workers narrowly escape suicide bombing that targeted their vehicle in Pakistan

  • Van had been heading to an industrial area where the five Japanese nationals worked at Pakistan Suzuki Motors
  • Insurgents have also targeted Chinese working on Pakistan on projects relating to the China-Pakistan Economic Corridor

KARACHI: A suicide bomber detonated his explosive-laden vest near a van carrying Japanese autoworkers, who narrowly escaped the attack Friday that wounded three bystanders in Pakistan’s port city of Karachi, police said.
The van had been heading to an industrial area where the five Japanese nationals worked at Pakistan Suzuki Motors, local police chief Arshad Awan said. He said police escorting the Japanese returned fire after coming under attack, killing an accomplice of the suicide bomber whose remains were found from the scene of the attack.
“All the Japanese who were the target of the attack are safe,” he said.
Images on local news channels showed a damaged van, as police officers arrived at the scene of the attack. Awan said the three passersby who were wounded in the attack were in stable condition at a hospital.
Police were escorting the van after receiving reports about possible attacks on foreigners who are working in Pakistan on various Chinese-funded and other projects, said Tariq Mastoi, a senior police officer. He said a timely and quick response from the guards and police foiled the attack and both attackers were killed.
No one immediately claimed responsibility, but suspicion is likely to fall on a small separatist group or Pakistani Taliban who have stepped up attacks on security forces in recent years. Insurgents have also targeted Chinese who are working on Pakistan on projects relating to the China-Pakistan Economic Corridor, which includes a multitude of megaprojects such as road construction, power plants and agriculture.
In March, five Chinese and their Pakistani driver were killed when a suicide bomber in northwest Pakistan rammed his explosive-laden car into a vehicle when they were heading to the Dasu Dam, the biggest hydropower project in Pakistan, where they worked.
However, Japanese working in Pakistan have not been target of any such attacks.
Karachi is the largest city of Pakistan and the capital of southern Sindh province.


Pakistan police kill bomber, militant to thwart attack on Japanese nationals

Updated 41 min 45 sec ago
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Pakistan police kill bomber, militant to thwart attack on Japanese nationals

  • Japanese survivors moved to a safe place in police custody, police says
  • No immediate claim of responsibility for the attack from any militant group

KARACHI: Police in Pakistan’s southern city of Karachi shot down a suicide bomber and a militant on Friday as they attacked a vehicle carrying five Japanese nationals, all of whom survived, a police spokesperson said.
Islamist militants seeking to overthrow the government and set up their own strict brand of Islamic rule have launched some of Pakistan’s bloodiest attacks over the last few years, sometimes targeting foreigners, such as Chinese.
The Japanese survivors have been moved to a safe place in police custody, the police spokesperson, Abrar Hussain Baloch, said.
There was no immediate claim of responsibility for the attack from any militant group.


Pakistan seeks to engage with Global Gateway Strategy through European Investment Bank

Updated 19 April 2024
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Pakistan seeks to engage with Global Gateway Strategy through European Investment Bank

  • EU to invest in infrastructure projects worldwide under Global Gateway Initiative 
  • Over the period 2021–2027, the European Union seeks to invest €300 billion

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday met Ambassador of the European Union, Riina Kionka, and sought the EU’s support to help Pakistan carry out important reforms in various sectors and engage with the Global Gateway Strategy through the European Investment Bank.
The EU is Pakistan’s second most important trading partner, accounting for over 14 percent of Pakistan’s total trade and absorbing 28 percent of Pakistan’s total exports. Pakistani exports to the EU are dominated by textiles and clothing.
“The Prime Minister appreciated the continuous support of the European Union to Pakistan regarding the GSP Plus scheme,” a statement from the PM’s office said about his meeting with Kionka. 
“The Prime Minister said that the European Union can play an important role in providing consultation and expertise for important reforms in various sectors in Pakistan.”
Pakistan’s GSP+ status is a special trade arrangement offered by the EU to developing economies in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance. 
The current GSP framework came to an end in December 2023 but Members of EU Parliament (MEPs) voted in October to extend the current rules on the scheme for another four years for developing countries, including Pakistan.
During his meeting Kionka, Sharif expressed satisfaction over existing institutional mechanisms “meeting regularly to exchange views on further strengthening cooperation” and indicated Pakistan’s interest in engaging constructively with the EU’s Global Gateway Strategy through the European Investment Bank.
The Global Gateway Initiative is a worldwide strategy by the European Union to invest in infrastructure projects worldwide. The project was initiated by the EU Commission under the leadership of Ursula von der Leyen. Over the period 2021–2027, the EU will invest €300 billion.
The EU Ambassador briefed the PM on various cooperation initiatives, including an ongoing dialogue on migration and mobility issues between the two sides, as well as facilitating European businesses operating in Pakistan. Progress on the resumption of flights from Pakistan to EU countries was also discussed.


Pakistani finance minister, Saudi Fund for Development discuss funding for dam, highway

Updated 19 April 2024
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Pakistani finance minister, Saudi Fund for Development discuss funding for dam, highway

  • Aurangzeb is in Washington for IMF and World Bank spring meetings
  • Saudi FM was recently in Pakistan to discuss investment projects

ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb met with Sultan Abdulrahman Al-Marshad, CEO Saudi Fund for Development (SFD), in Washington on Thursday and discussed investable projects, including a dam and a major national highway. 
Aurangzeb is in Washington for IMF and World Bank spring meetings. As he launches negotiations for a new three-year multi-billion-dollar bailout deal from the IMF, Saudi Foreign Minister Prince Faisal bin Farhan Al Saud was in Islamabad earlier this week where he said Riyadh would be “moving ahead significantly” to invest in projects in the South Asian nation. 
The Saudi official’s visit followed a meeting in Makkah between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman in which the Kingdom had pledged to expedite $5 billion in investments.
“Briefed him [SFD CEO] about his recent visit to Saudi Arabia and that of Saudi delegation to Pakistan during this week,” the finance ministry said about the meeting between the Pakistani finance minister and the Saudi official in Washington. 
“Expressed satisfaction with the progress of ongoing projects. Discussed the funding of Diamer Bhasha dam and N-25 from Karachi to Chaman. Informed that Pakistan would pitch bankable and investable projects to Saudi investors.”
Diamer-Bhasha Dam is a concrete-filled gravity dam, in the preliminary stages of construction, on the River Indus between Kohistan district in Khyber Pakhtunkhwa and Diamer district in Gilgit Baltistan. Upon completion, the dam dam would produce 4800 megawatts of electricity through hydro-power generation, store an extra 10.5 cubic kilometers of water for Pakistan that would be used for irrigation and drinking, extend the life of Tarbela Dam located downstream by 35 years, and control flood damage by the River Indus downstream during high floods.
The N-25 or National Highway 25 is an 813 km national highway in Pakistan which extends along from Karachi, Pakistan’s commercial hub, in Sindh province to the Chaman border via Quetta in the Balochistan province of Pakistan.
During the Saudi FM’s visit this week, investments in the Pakistani sectors of mining and minerals, agriculture, energy, information technology and infrastructure development were discussed. Speaking to journalists on Thursday, Foreign Minister Ishaq Dar said Pakistan had pitched an “epic menu” of investment projects worth $30 billion to Riyadh during Prince Faisal’s visit. 
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and the top source of remittances to the cash-strapped South Asian country.


3.51 billion phone app downloads in Pakistan in 2023 amid spending surge — report

Updated 19 April 2024
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3.51 billion phone app downloads in Pakistan in 2023 amid spending surge — report

  • After two years of being fastest growing major market, new app downloads from Pakistan tapered off in 2023
  • Decline was in line with global slowdown that included many peer countries such as Egypt, Indonesia, Vietnam

KARACHI: Mobile app downloads in Pakistan declined to 3.51 billion in 2023 from 3.52 billion downloads last year while consumer spending rose to over $87 million from $82 million, according to a report released on Thursday.
Globally, the mobile app industry witnessed some recalibration where growth in new installs moderated 0.8 percent to reach 257 billion while consumer spending edged up 2.4 percent to $171 billion, according to a report by Data Darbar, a data and market intelligence platform, and Emirati streaming platform Begin.
“After two years of being the fastest growing major market, new app downloads from Pakistan tapered off slightly in 2023,” Natasha Uderani, co-founder of Data Darbar, said in a statement issued on Thursday.
The decline was in line with the global slowdown where many peer countries, such as Egypt, Indonesia and Vietnam, experienced similar trends, Uderani said.
Just over a third of all Pakistani downloads during 2023 were games while the share of apps stood at 64 percent. This aligned with the global trend where 34 percent of the installs were for apps and the remaining 66 percent for games.
However, with continuous decline in the cost of broadband, Pakistanis were now consuming more mobile data than ever, which meant that apps would take center stage for the country’s digitalization wave and the growth in downloads will reaccelerate in the coming years.
Meta and ByteDance dominated the most downloaded apps chart, with Tiktok comfortably taking the lead at almost 32 million installs during 2023 while WhatsApp Business followed behind, the data showed.
This was in line with the global trend where the two big tech giants remained the top publishers. Among games, the offline habits replicated in the online realm as three of the five most downloaded games in Pakistan were Ludo apps.
Among categories where publishers performed well, entertainment and finance stood out with downloads of 172 million and 144 million, respectively. The former featured Jazz-owned Tamasha in the top spot while Telenor’s Easypaisa led in the latter.
“The rise of streaming and finance apps in Pakistan underscores the underlying shift toward mobile for the delivery of not only entertainment but also banking services,” said Jonathan Mark, chief commercial officer of Begin, a UAE-headquartered streaming service launching in the GCC region and South Asia.
“As consumers become more tech-savvy and their demand for digital services increases, we expect to see further growth and innovation in these and other app categories.”
Pakistanis spent about 99 billion hours using mobile apps where 7.5GB average data was consumed by the users per month. This translates into a jump of 13.8 percent compared to 87 billion hours in 2022, meaning Pakistanis spent an additional 12 billion hours on their mobiles during the year, the report added.
The South Asian nation, in line with the global trends, also experienced a continuous decline in the average cost of one gigabyte (GB) of data. Compared to the FY18 levels, cost has plunged by 71.4 percent to Rs32.8. However, over the last two years, the rate of decline has moderated noticeably and is now in just single digits.
The total cellular subscriptions in Pakistan fell annually to close FY23 at 190.9 million, down 1.9 percent from 194.6 million, first instance of decline in at least six years, and possibly on record.
Both Jazz and Telenor, the two largest telecoms, contributed to the downward trend with their subscriptions falling by 4.1 million and 3.1 million, respectively, according to the report.
On the supply side, the total apps published by Pakistani developers continued its downward slide and hit just over 4,800 in 2023, down 11.4 percent. This was almost singularly driven by Google Play, where the count of Android apps fell by 600. Consequently, the share of iOS in the aggregate edged up to 22.3 percent.