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Why Multinational Pharmaceutical Companies Have Gone from Pakistan

Review Article | DOI: https://doi.org/10.31579/2835-8325/172

Why Multinational Pharmaceutical Companies Have Gone from Pakistan

  • Rehan Haider *

Riggs Pharmaceuticals, Department of Pharmacy University of Karachi Pakistan.

*Corresponding Author: Rehan Haider, Riggs Pharmaceuticals, Department of Pharmacy University of Karachi Pakistan.

Citation: Rehan Haider, (2025), Why Multinational Pharmaceutical Companies Have Gone from Pakistan, Clinical Research and Clinical Reports, 8(2); DOI:10.31579/2835-8325/172

Copyright: © 2025, Rehan Haider. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Received: 13 June 2025 | Accepted: 03 July 2025 | Published: 15 July 2025

Keywords: multinational pharmaceutical companies (mncs); pakistan, regulatory challenges, healthcare

Abstract

The creeping exit of international drug companies (MNCs) from Pakistan has nurtured important concerns concerning the approach to creative medicines and healthcare features. This paper surveys the reasons behind this flow, including supervisory challenges, economic inconsistency, display action, and tactics issues. It likewise examines the results concerning this leaving and desires to retain and entice international loans in the drug area. Addressing these challenges is critical to guaranteeing the chance of first-rate cures and fostering a strong healthcare plan in Pakistan.

Introduction

The drug location in Pakistan performs an energetic responsibility in making sure techniques to vital treatment plans and reconstructing healthcare recommendations. Multinational drug guests (MNCs) traditionally furnished by introducing 49a2d564f1275e1c4e633abc331547db healings and asserting global function benchmarks [1]. But, a solid decline of their closeness has turned out to be obvious over historical instances many years. This paper surveys the motives behind their go-out and allure pointers for Pakistan’s healthcare association whilst providing litigable corrects to reverse this fashion.

Key factors for MNCs' exit

1. Regulatory challenges

One of the basic problems forceful MNCs out of Pakistan is the irregular regulatory environment. The Drug Regulatory Authority Contemporary Pakistan (DRAP) has been reviewed for incompetence in drug enrollment and authorization methods, beginning delays with the advent of trendy cures [2]. Moreover, estimating necessities frequently forsake to suggest show realities, leaving little range for international institutions to carry out lucratively. These administrative hurdles restrain funding within the drug subdivision.

2. Economic instability

The US’s monetary imbalance, from continuous currency depreciation and intense swelling, has significantly jolted the worth of modern MNCs operating in Pakistan. For instance, the devaluation of latest the Pakistani rupee against the us dollar increases the value of cutting-edge herbal assets, making it difficult for institutions to claim formidable valuing [3]. Moreover, inflationary pressures and the unstable macroeconomic environment scare endless properties by outside bodies.

3. Market Dynamics

The supremacy of modern-day neighborhood pharmaceutical visitors has too gambled an obligation inside the leaving modern MNCs. Nearby companies right away control over 70% of trendy inventory trade, leveraging lower operational fees and administration guides to provide competitive charges [4]. In assessment, correct price controls restrict the power of present-day MNCs to revel in moves whilst adhering to worldwide individual flags. As a result, international companies locate themselves pinched in exhausted retail that modern-day favors household adversaries.

4. Infrastructure and delivery Chain issues

Pakistan’s incompetent foundation poses essential challenges to MNCs. Frequent ability outages, wasteful logistics, and delays imply natural assets disillusioned result schedules and growth purposeful fees [5]. Those supply chain incompetence Exacerbate the difficulties of operating in a display that already offers restricted appropriateness.

5. Policy and Taxation Issues

Another detracting determinant is the lack of inducements for external investors. Pakistan’s difficult tariff order and frequent changes in tactics further prevent MNCs from claiming their operations. For example, unexpected increases in significance assignments on drug devices have managed to cause escalations, undermining the implausible story animation of many MNCs [6].

Consequences of MNCs' Exit

The leaving of MNCs has weighty suggestions for Pakistan’s healthcare plan. One notable consequence is the lowered chance of creative analyses for never-ending and infrequent diseases, in the way that malignancy and autoimmune disorders [4]. Additionally, the omission of MNCs has led to a rise in counterfeit and inferior cures, endangering community health [1]. This style too limits the excuse for local healthcare specialists to cooperate with all-encompassing specialists, hampering the progress of healing research in the country.

Suggestions for Reforms

To address these challenges, the following corrects are recommended:

  • Streamline Regulatory Processes: The management must clarify and accelerate drug approvals to humiliate delays that dispirit investment [2].
  • Stabilize Pricing Policies: Transparent and agreeing fixing systems concede the possibility come together to support MNCs with a certain operating atmosphere.
  • Offer Incentives: Tax festivals and grants fascinate foreign drug associations and strengthen the ruling class to extend their movements in Pakistan [3].
  • Strengthen Intellectual Property Protections: Ensuring robust protected property created by original thought standards will safeguard changes and promote assurance between foreign financiers

Conclusion

The exit of international pharmaceutical associations from Pakistan indicates systemic issues, containing supervisory inefficiencies and business-related imbalances. These challenges have created a mean atmosphere for foreign contribution, leaving the country dependent on domestic performers. To guarantee access to prime cures and improve healthcare effects, Pakistan must select urgently corrects proposed to stabilize its drug sector. Without these changes, the healthcare arrangement risks further degeneration, ultimately jolting community health and global drug alliances

References

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