ISLAMABAD: Pakistan has this month established a new Pharmaceutical Export Promotion Council (PharmEx Pakistan) in a bid to expand exports and enhance the global competitiveness of its drug manufacturers, the country’s commerce minister said.

Pakistan’s pharmaceutical industry, valued at about $4 billion domestically, has recorded steady growth in exports in recent years but remains a relatively small player globally.

Commerce Minister Jam Kamal Khan announced the formation of the new council under the Trade Development Authority of Pakistan (TDAP) while addressing a gathering organized by the Pakistan Pharmaceutical Manufacturing Association (PPMA) earlier this month. 

“The pharmaceutical sector has huge export potential, and PharmEx Pakistan is just one or two steps away from becoming operational,” Khan was quoted as saying by state-run Pakistan Television, adding that the government would continue to facilitate the industry in achieving higher international sales.

At the event, PPMA Chairman Touqeer ul Haq said the new council would work as a public-private initiative to strengthen compliance with international standards, improve market access, and showcase Pakistani products abroad.

Haq identified Afghanistan as a critical export destination and welcomed minister Khan’s assurance of better coordination to keep cross-border trade smooth.

In addition to the new council, the government will also set up an Exporter Facilitation Desk at the ministry of commerce to resolve urgent problems faced by pharma exporters and ensure direct support when needed, minister Khan said.

The setting up of PharmEx is part of Islamabad’s broader push to diversify exports beyond traditional sectors such as textiles, rice and sports goods, amid persistent current account pressures and the need to earn more foreign exchange.

According to PPMA data, pharmaceutical exports increased from $270 million in 2020–21 to about $355 million in the current fiscal year 2024–25, and industry leaders say the country has the potential to reach $3 billion in annual exports if regulatory hurdles and market access barriers are addressed.

Pakistan produces over 90 percent of its medicines locally, supplying a large portion of the country’s health care needs and serving niche markets in Afghanistan, Central Asia and parts of Africa and the Middle East.

The industry, however, faces challenges such as high input costs, regulatory bottlenecks, and tough global competition.