Pakistan's pharmaceutical sector records highest sales in FY24

Pakistan's pharmaceutical industry recorded the highest-ever sale of Rs237 billion in the fiscal year 2024, showing a 25% increase compared to the same period last year, according to the statistics released by IQVIA.

Figures revealed that the medical sector achieved sales of Rs916 billion, representing a 22% increase year-on-year. The growth is higher than in the last 5-year from 2020 to 2024.

According to Topline Pakistan Research, a 20% increase can be attributed to the price hike, while the remaining 5% is due to the higher volume of sales.

In February 2024, the government deregulated the prices of 146 essential medicines. Initially, it faced legal challenges, but after clarification from the federal government to the Lahore High Court, the pharmaceutical industry received a favourable ruling on April 2, 2024.

Industry analysts believed that the deregulation of the pharmaceutical sector would enable companies to more effectively pass on costs to consumers and assist themselves in restoring gross margins.

Currently, the sector’s gross margins stand at a decade-low of 26%.

It is pertinent to mention here that Pakistan’s pharmaceutical sector relies on a mix of local and multinational companies, with local firms holding substantial shares of the market.

Notable companies, including Getz Pharma, The Searle Company, Ferozeson Laboratories, GlaxoSmithKline (GSK), and Abbott Laboratories, played a crucial role in increasing sales.