Pakistan says ‘very close’ to agreement with Saudi Arabia on local vaccine production

An undated file photo of Pakistan Health Minister Syed Mustafa Kamal. (APP)
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Updated 06 February 2026
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Pakistan says ‘very close’ to agreement with Saudi Arabia on local vaccine production

  • Pakistan is in talks with visiting Saudi delegation on agreement to produce vaccines locally
  • Health Minister Syed Mustafa Kamal says production could begin within three years’ time

ISLAMABAD: Health Minister Syed Mustafa Kamal said this week that Pakistan is “very close” to reaching an agreement with Saudi Arabia that would enable Islamabad to manufacture vaccines locally, saying production could begin within the next three years.

An 11-member Saudi delegation, led by the Kingdom’s senior adviser to the minister of industry Nizar Al-Hariri, arrived in Pakistan this week and held talks with health officials on establishing local vaccine manufacturing.

The talks take place amid Pakistan’s broader push to strengthen health security and industrial capacity. The country of more than 240 million currently imports all vaccines used in its national immunization campaigns, relying heavily on international partners to help cover costs.

“We have not yet reached the agreement, but we are reaching toward the agreement,” Kamal told Arab News in an exclusive interview on Wednesday.

He said Pakistani officials have been in touch with the Saudi government for the past six to seven months on the matter.

“So, I think we have traveled a long way and we are very close to making some decision regarding [an] agreement,” the minister added.

Pakistan currently provides vaccines for 13 diseases free of cost. However, imports all of these vaccines at an annual cost of about $400 million.

According to the health ministry, international partners currently cover 49 percent of these costs, with the remainder borne by the Pakistani government. This external support, Kamal warned, is expected to end after 2030.

The minister said local vaccine production could significantly reduce Pakistan’s reliance on imported vaccines and help prepare the country for when the support from international partners ends.

VACCINE PRODUCTION IN PHASES

Kamal said once the agreement with Saudi Arabia is signed, vaccine production in Pakistan would begin far earlier than anticipated.
 
“The moment we sign the agreement, it will not take 2030 to, you know, make [vaccines],” the minister said.

He said vaccines in Pakistan will be developed in a phased manner. Within one year, Pakistan can start packing and filling vaccines and by the second, it can advance to another level, he said.

“And the third or fourth year, we could go to the seeds’ production and other indigenous vaccines,” Kamal said. “The entire thing should be done here in Pakistan.”

He said the proposed project is expected to be a joint partnership between Pakistan and Saudi Arabia, with the possibility of Indonesia also joining at a later stage.

However, the minister clarified that details are yet to be decided.

’TREMENDOUS JOB’

When asked why Pakistan was eyeing a partnership with Saudi Arabia in producing vaccines locally, Kamal said the Kingdom has achieved the World Health Organization’s maturity level four (ML4) for medicines and vaccines regulation.

ML-4 is the highest level of WHO’s classification for regulatory authorities, Kamal noted.

 
“Well, Saudi Arabia has done a tremendous job,” the minister said. “We must understand this. They are working on this issue, on this local vaccine production for the last 10 years.”

Pakistan currently holds an ML-2 certification and is attempting to rise to a level above, Kamal said. The minister said Saudi Arabia’s support could help Islamabad move closer to international pre-qualification standards.
 
Kamal said Pakistan’s push for local vaccine production was driven by the looming end of donor support for its immunization programs.

He said that when this support ends after 2030, the government would have to pay around $1.2 billion to import vaccines.

Pakistan’s annual vaccine requirement currently stands at around 130 million doses, a figure Kamal said is not financially viable for large-scale production unless output is increased for export.
 
“Unless and until we have 300 to 400 million doses, then it becomes a viability,” Kamal said.
 
Pakistan plans to export vaccines to global markets once it starts producing them, leveraging its existing pharmaceutical export footprint.
 
“Pakistani medicines are going all over the world,” he said. “I mean, Africa, Europe, Middle East, Central Asian countries.

“So, the same way, we will be marketing our vaccine to different parts of the world as well,” he explained.
 
Kamal said the government has already introduced several leading local pharmaceutical companies to the Saudi delegation, keeping the door open for business-to-business partnerships.
 
He said tangible results on local vaccine production could be expected within three years.

“And this, I am telling you, would be a miracle,” he said.


Pakistan stresses increasing trade, economic engagement with Europe amid EU-India deal 

Updated 09 February 2026
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Pakistan stresses increasing trade, economic engagement with Europe amid EU-India deal 

  • Deputy PM Ishaq Dar chairs meeting to review measures to strengthen Pakistan-EU economic and trade cooperation
  • Free trade agreement grants Indian exporters sweeping tariff-free access to EU, Pakistan’s second-largest export market

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Monday stressed the importance of deepening trade and economic engagement with the European Union (EU) amid the bloc’s recent free trade agreement with India. 

India and EU last month announced they had successfully concluded negotiations for a free trade agreement with the EU, which Indian Prime Minister Narendra Modi described as the “mother of all trade deals.” The agreement grants Indian exporters sweeping tariff-free access to the EU, Pakistan’s second-largest export market. European Commission President Ursula von der Leyen said the deal created a free trade zone of two billion people.

The main concern for Pakistan is that the India-EU deal may significantly reduce Islamabad’s tariff advantage under the EU’s Generalized Scheme of Preferences Plus, which allows duty-free access for many Pakistani exports in return for commitments on labor rights, human rights and governance. Pakistan’s foreign office, however, has said it continues to view its trade relationship with the EU, particularly under the GSP Plus framework, as mutually beneficial.

Dar chaired a high-level inter-ministerial meeting to review measures aimed at strengthening Pakistan’s economic and trade cooperation with EU on Monday, the foreign ministry said. 

“DPM/FM underscored the importance of deepening and expanding trade and economic engagement with the EU, noting that the EU remains a key economic partner for Pakistan, particularly under the GSP Plus framework,” the statement said. 

He highlighted that Pakistan has successfully completed four biennial GSP Plus reviews, reaffirming Islamabad’s commitment to fully meeting its obligations under the scheme to expand mutually beneficial trade opportunities.

The meeting was attended by the federal minister of law and senior officials as well as Pakistan’s ambassador to the EU. 

The development takes place as Pakistan’s exports dwindle. After rising 5 percent to $32.1 billion last fiscal year, the Pakistan Bureau of Statistics reported that exports fell 9 percent to $15.2 billion in the first half of the current year through December. 

Pakistani industrialists and financial analysts have urged the government to reduce domestic production costs, particularly high power tariffs. EU accounts for a substantial share of Pakistan’s exports, particularly textiles and garments. 

“The EU-India FTA will have a definite impact on Pakistan’s textile exports to the EU,” said Shankar Talreja, the head of research at Karachi-based Topline Securities Ltd, told Arab News last month. 

“Pakistani companies’ competitive advantage to compete against a giant like India needs to be restored in the form of regionally aligned energy tariffs and policy certainty.”