Students’ Name:
Bilal Ahmad F2022314005
Muhammad Haseeb F2022314066
Muhammad Taha F2022314065
Sher Zaman F2022314050
Industry Chosen:
Pharmaceutical Industry
Companies Included:
We have chosen the pharmaceutical industry, and in Pakistan, there are
approximately 650 registered companies currently operating. Out of these 650
companies, 14 companies are listed on the Pakistan Stock Exchange, namely:
● Abbott Industries (Pakistan) Limited
● AGP Limited
● BF Biosciences Limited
● Citi Pharma Ltd.
● Ferozsons Laboratories Limited
● GlaxoSmithKline Pakistan Limited
● Haleon Pakistan Limited
● Highnoon Laboratories Limited
● Hoechst Pakistan Limited
● IBL Healthcare Limited
● Iven Pharma Limited
● Macter International Limited
● Otsuka Pakistan Limited
● The Searle Company Limited
The Performance of the Pharmaceutical Industry:
Pakistan’s pharmaceutical sector has demonstrated remarkable growth in recent
years. ٰIts role as a pivotal component of the nation's economy and healthcare
system has also been built up strongly.
Industry Overview:
In the fiscal year 2023-24, the pharmaceutical industry achieved a record 22%
growth, with annual revenues reaching Rs. 916 billion. This sudden surge was
primarily caused by government-approved price adjustments and the deregulation of
non-essential drug prices, which contributed to the highest-ever quarterly sales of
Rs. 237 billion in Q4 FY24.
Export Performance:
Pakistan's pharmaceutical exports have shown a positive trajectory. In FY 2023-24,
exports increased by 3.90%, totaling $341.023 million, up from $328.210 million in
the previous fiscal year. The volume of exported pharmaceutical goods also rose by
44.38%, from 59,213 metric tons to 85,492 metric tons .Key export destinations
include Afghanistan, the Philippines, Sri Lanka, Uzbekistan, and Cambodia, with
Afghanistan accounting for the largest share at 36%
Looking ahead, the Pakistan Pharmaceutical Manufacturers Association (PPMA) has
set ambitious targets to increase exports to $1 billion by 2025 and $5 billion by 2030,
contingent upon supportive government policies and incentives .
Challenges and Profitability:
Despite revenue growth, the industry faced profitability challenges in 2023. Listed
pharmaceutical companies experienced a 42% decline in net profits, totaling Rs. 7.9
billion. This downturn was attributed to shrinking gross margins, which fell from 30%
in 2022 to 26% in 2023, and increased finance costs, which surged by 55% to Rs.
7.7 billion. Factors such as a 20% devaluation of the Pakistani rupee and an average
inflation rate of 31% exacerbated these financial pressures
Industry Composition:
The pharmaceutical landscape in Pakistan comprises over 650 companies, including
both local and multinational entities. Notably, the top 10 companies hold
approximately 48% of the market share, while the top 50 account for 93%, indicating
a highly consolidated market
Contribution to GDP:
While the Pharmaceutical Sector is not listed as a standalone sector in Pakistan's
national GDP accounts, it falls under the umbrella of Large Scale Manufacturing
(LSM), which contributed 9.74% to Pakistan’s GDP in FY 2024–25 (Provisional), as
reported by the Pakistan Bureau of Statistics.
The industry is valued at over Rs. 850 billion, with a double-digit annual growth rate
caused by rising domestic demand and healthcare needs.
Within this broader category, the pharmaceutical sector alone is estimated to
contribute approximately 1% to the national GDP, according to an independent
report generated by the Institute of Chartered Accountants of Pakistan (ICAP).
This reflects the sector’s growing importance in both industrial development and
public health. With a network of over 650 local and multinational companies, the
pharmaceutical industry not only meets a substantial portion of domestic medicine
demand but is also expanding its footprint in international markets.
Stock Price: