Pakistan’s pharmaceutical manufacturers are urging the government to redirect a mandatory 1% profit contribution, currently channelled into a centralised fund, directly into their own in-house research and development (R&D) programmes. Industry leaders argue this strategic shift is crucial for developing export-oriented products and boosting sustainable economic growth.
Tauqeer Ul Haq, Chairman of the Pakistan Pharmaceutical Manufacturer Association (PPMA), voiced strong concerns about the existing Central Research Fund (CRF).
“The Central Research Fund (CRF) is not being utilised purposefully for the sectoral R&D, but for administrative purposes,” he stated.
While Pakistan’s traditional export sectors like textiles and leather have historically received significant government support, the pharmaceutical industry has seen steady export growth into key international markets – including Africa, the Middle East, and Southeast Asia – largely on its own steam. However, industry officials believe this performance could be significantly amplified with targeted government support, particularly in fostering innovation.
The core issue, they say, lies with the mandatory 1% profit contribution to the CRF. Originally intended to spur R&D, stakeholders report the fund is now predominantly used for administrative and infrastructural spending. This includes laboratory upgrades and regulatory systems, which, while important, do not directly fuel the product-focused innovation needed for international competitiveness and export growth.
