Pharma exports fall 30% to three-year low as Afghan border stays shut

Pakistan's exports of medicines fell 30 per cent in the fiscal year ending 30 June 2026 to $319.01 million, their lowest level in three years, according to figures the Pakistan Pharmaceutical Manufacturers Association (PPMA) cited to Aaj News.

The association attributes the decline mainly to the closure of the Pakistan-Afghanistan border since October 2025, which halted deliveries to one of the industry's largest markets, and to the sharp rise in fuel prices.

Former PPMA chairman Tauqeerul Haq said Afghanistan took 42 per cent of Pakistan's total medicine exports in the previous fiscal year, worth $457.4 million. In FY2025 those exports had grown 34 per cent, the fastest rate in two decades. Had supplies to Afghanistan continued normally, he said, exports in FY2026 could have risen by 20 to 25 per cent instead.

The drop was not confined to medicines. Total exports of medical products (medicines, surgical instruments, food supplements, medical devices and nutritional products) fell to $771 million from $990 million the year before. Pakistan's overall exports were down 6 per cent at $30.13 billion.

Haq said higher oil prices during the US-Iran war were the second major cause, pushing up transport costs and making Pakistani medicines uncompetitive in several low-margin international markets, where some companies were selling at a loss. Shipments by land and air to some destinations were also delayed by the regional situation, he said.

He proposed that the government approach Kabul to restart medicine supplies, arguing this would meet health needs in Afghanistan and keep essential drugs flowing despite the border closure. He said the United Nations charter requires that medicines continue to reach war-affected areas to save lives, and noted that Pakistan kept importing raw materials from India in 2025 even amid tension between the two countries.

Haq also called for a committee of the commerce ministry, the Trade Development Authority of Pakistan (TDAP) and industry representatives that would arrange official delegations to key export markets, speed up drug registration and ensure factory inspections by foreign regulators are held on time. He named Sri Lanka, the CIS countries, Vietnam and Cambodia among markets where Pakistani firms are already present but registration is slow.

The former chairman said the federal cabinet should issue a formal notification for Pharma Ex Pakistan, an independent trade body of government officials and manufacturers' representatives working under TDAP. The proposal was discussed and approved at the commerce ministry in mid-2025, he said. India set up a similar body about 15 to 20 years ago and its pharmaceutical exports now stand at roughly $30 billion a year, he added.

He also asked the State Bank of Pakistan to let manufacturers hold a larger share of their export earnings in foreign currency, proposing that the existing 15 per cent limit be raised to 35 per cent so firms can spend more on advertising, registration and sales abroad.