Indo-Pak Trade: Apprehensions and Opportunities for Pharmaceutical Industry of Pakistan

Abstract

The long-standing bilateral conflicts between Pakistan and India and resultant massive defense spending have marred economic growth in Pakistan. But for last few years, there has been a great stress on building stronger economic ties between Pakistan and India. The proposed normalization of trade between two countries has stimulated heated debate in Pakistan. The policy of normalization of relations and liberalization of trade with India got a mixed response from different quarters in Pakistan. It is welcomed by some political parties and industrial sector as a good opportunity whereas some have expressed their apprehensions and concerns. Pakistan’s pharmaceutical sector is in defiance of trade liberalization with India as the industry feels “serious threats” for Pakistan’s local market. However, Pakistan Medical Association (PMA) views normalization of trade as a “grand opportunity” for Pakistan that will benefit consumer, control price hike, raise standards of medicine and bring peace and stability in the region. Even a few pharmaceutical companies are hoping for joint ventures through which Pakistan can earn Food and Drug Administration (FDA), USA, approved plants that are essential to export medicines to the US, European Union (EU) and Japanese markets. Increased economic interdependence can reduce or restrain war and hard-line approach of military and political leadership in India and Pakistan.