The health care products and pharmaceutical industry in Pakistan is largely based on imports. At present, 92 percent of the basic raw materials are estimated to be imported from different countries. The major exporters of these raw materials to Pakistan are USA, UK, Germany, China and Japan. Basic manufacture of drugs and fine chemicals is very limited in the country and there is an urgent need to assess the growth prospects and identify an appropriate course of action to establish basic drugs and fine chemicals projects in the country.

A few attempts have been made by Pakistan entrepreneurs to manufacture basic raw materials, yet the industry has not developed with the passage of time because of following adverse factors.

High cost of limited valve of productions as compared to the prices of imported materials. Intermediates and auxiliary chemicals, including organic solvents have to be imported at high cost because a significant industry does not exist in the country. Investment required for establishing of basic manufacturing plant is high.

Multinationals corporations, which have the resources to invest in the basic manufacture or additionally not inclined to invest since they are able to purchase basic raw materials from their parent companies through an effective system of tied sales. 30 Multinational corporations are engaged in the pharmaceutical industry, out of which only 10 corporations are involved in basic manufacturing. Emphasis has been laid quiet often from official and other quarters on the need of compelling the multinational companies to establish facilities for the production of basic ingredients. Although, basic chemical solvents, reactive etc are not available for the promotion of the industry, yet it can be promoted on a modest scale through import of basic raw material.

It is often argued by multinational companies that the market for the consumption of basic chemical in pharmaceutical industry in Pakistan is a limited one and therefore, a multipurpose chemical synthesizing unit say, of a 50 ton capacity can be operated for the production of different types of chemical alternatively. The health care products and pharmaceutical industry in Pakistan is quite capable of formulating medicines of various therapeutic groups. The study recommends a check on the imports of all those finished medicaments, which can be produced locally.

Chemi World (Pvt.) Ltd. is an initiation for manufacturing of basic raw material and to be independent of the imported chemicals as a raw material and, hence, depending upon our local resources and exploiting our local market opportunities, resulting in strengthening and expansion of the chemical and pharmaceutical industries.

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