Pakistan Pharma Exports Drop Sharply Due to Afghanistan Trade Halt

Pakistan pharma Export is facing an unprecedented crisis, marked by a sharp, ongoing contraction in export revenue and volume. Industry experts and trade bodies have pointed directly to a major disruption in trade with Afghanistan—historically one of the primary and most lucrative destinations for Pakistani pharmaceutical products—as the core catalyst behind the downturn.

A Steep Financial Decline

According to official figures released by the Pakistan Bureau of Statistics (PBS), the country’s pharmaceutical exports plummeted by 30.26 percent during the fiscal year 2026 (FY26), tumbling from $457.456 million in FY25 down to $319.012 million. This steep decline resulted in an absolute revenue loss of roughly $138.444 million in just a single fiscal year.

Export volumes suffered a similar fate, contracting by 26.14 percent from 112,517 tonnes in FY25 to 83,104 tonnes in FY26.

The downward trajectory has spilled heavily into the current financial cycle. During the first quarter of FY27, pharmaceutical proceeds dropped by another 25.53 percent, sliding from $98.428 million in the corresponding period of the previous year to $73.301 million. Quantity-wise, export volumes fell even more sharply—down by 31.40 percent from 23,924 tonnes to 16,410 tonnes, marking a reduction of 7,514 tonnes.

Interestingly, market statistics show diverging trends in average export values per tonne. While the average export value per tonne grew by approximately 8.6 percent in the first quarter of FY27 (rising from around $4,115 to $4,469), it experienced a 5.6 percent drop during FY26 (falling from roughly $4,065 to $3,838). Analysts note that these fluctuations reflect shifts in the overall product mix of exported pharmaceuticals rather than general changes in core medicine pricing.

In contrast, other medical sectors remained resilient. Exports of surgical goods and medical instruments—which are tracked separately from general pharmaceuticals—grew by 8.8 percent to $121 million in the first quarter of FY27, while maintaining a steady figure of $451.527 million for the entirety of FY26.

The Afghanistan Factor: A Vital Market Lost

The root of the pharmaceutical industry’s distress lies just across the western border. Data sourced from the Pakistan Pharma Portal (managed by Trade Development Authority of Pakistan – TDAP, using PRAL records) highlights the sheer weight of the Afghan market. In FY25 alone, Pakistan exported $155.68 million worth of medicines to Afghanistan. This single market accounted for a staggering 34.1 percent of Pakistan’s total pharmaceutical exports of $457.456 million that year.

However, Afghanistan’s recent sweeping overhaul of its domestic medicine market—aimed at driving up local manufacturing standards and encouraging domestic production—has severely restricted foreign trade. While the policy changes were intended to reform Afghanistan’s internal healthcare landscape, the swift and drastic execution has led to widespread commercial friction and halted traditional trade pipelines.

Impact on Businesses and Patients

Former Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Tauqeer ul Haq emphasized that the sudden suspension and restrictions on trade with Afghanistan have triggered crippling financial losses for local pharmaceutical manufacturers as well as a significant dent in the national exchequer.

Beyond corporate losses, Haq warned that the crisis is taking a heavy human toll. Afghan patients are increasingly suffering as they are forced to seek out alternative, significantly more expensive imported medicines due to the shortage of affordable Pakistani brands.

Official Stance and Unresolved Solutions

The PPMA has repeatedly raised the alarm with federal authorities, urging immediate diplomatic and economic intervention. According to Haq, Federal Planning Minister Ahsan Iqbal previously acknowledged the gravity of the situation and assured stakeholders that the government would engage with relevant Afghan and domestic authorities to establish mechanisms to revive medicine exports. However, industry leaders lament that there has been little tangible follow-up or actionable policy momentum since those initial assurances, leaving manufacturers grappling with mounting losses.

Source Link

Asia News Network – Afghan trade halt hits Pakistan’s pharma exports