Medicine exports remain strong amid challenges

Farrukh Khosru and Reza Mahmud :

Despite instability in Myanmar, Bangladesh continues to export medicines to the neighboring country both directly and alternative routes. Exporters have reported that Myanmar is currently under US sanctions, and the country is also facing a foreign currency crisis.

As a result, in May 2023, the Myanmar government imposed a near-complete halt on imports, including pharmaceuticals, for six months.

Although restrictions have since been gradually eased, there has been a prolonged delay in allowing limited imports through Chinese currency. Nevertheless, Bangladesh continues to export medicines to the country through limited and alternative way.

According to the Directorate General of Drug Administration (DGDA), local pharmaceutical companies meet 98 per cent of Bangladesh’s domestic demand and export medicines to at least 157 countries worldwide.

At least 50 Bangladeshi pharmaceutical companies are engaged in significant export activities. Bangladesh exports medicines to 43 countries in Asia, 26 countries in South America, six countries in North America, 39 countries in Africa, 38 countries in Europe, and five countries in Australia.

Export Promotion Bureau (EPB) reveals that over 50 per cent of total pharmaceutical exports go to five countries: Myanmar, Sri Lanka, the United States, the Philippines, and Afghanistan. EPB statistics show that in the 2021-22 fiscal year, the value of Bangladesh’s pharmaceutical exports to the global market amounted to $188.7 million. In the 2022-23 fiscal year, the country exported medicines worth $175.4 million.

However, in the first 11 months of the 2023-24 fiscal year (July-May), Bangladesh was able to surpass the previous year’s exports, with the export value reaching $184.2 million. Of this, $18.1 million worth of medicines were exported to Myanmar. In comparison, the previous fiscal year saw exports to Myanmar valued at $25.8 million.

One of the largest pharmaceutical exporters to Myanmar is Square Pharmaceuticals Limited. Their international trade representatives have stated that despite the continued export of medicines to Myanmar, the import approval process has been drawn out, and import volumes have been restricted. Nonetheless, a certain volume of medicine exports continues. Myanmar’s pharmaceutical import associations have also repeatedly raised the issue with their government.

When contacted, S.M. Shafiuzzaman, Secretary General of the Bangladesh Association of Pharmaceutical Industry, told The New Nation, “Bangladesh is exporting medicines to around 120 countries worldwide. As the pharmaceutical industry relies on importing raw materials, we need adequate policy support from the government to boost exports in this sector.”

He noted that volatility in the dollar market and labor unrest are major threats to further boosting pharmaceutical exports.

Professor Dr. M. Muzaherul Huq, former Adviser to the World Health Organization (WHO), told The New Nation, “Pharmaceutical exports are in a very good state in our country, and the government should provide extensive support to this industry to further boost it.”

He explained that increasing medicine exports would not only improve product quality but also benefit the health sector, as more people would have access to better medicines. Additionally, export earnings would increase.
Dr. Lokiat Ullah, Managing Director of BIOPHARMA Ltd, told The New Nation, “We are engaged in exporting pharmaceutical products to many countries, including several neighboring ones.”

He added, “There is huge potential to further boost medicine exports globally, but this requires more government policy support.”

EPB data shows that Sri Lanka imported $21.9 million worth of medicines in the 2022-23 fiscal year, and in the first 11 months of the last fiscal year, it imported $21.3 million worth of pharmaceuticals.

The United States imported $15.2 million worth of medicines in the 2022-23 fiscal year, with exports to the country exceeding $21.9 million in the first 11 months of the last fiscal year. Notably, the growth in pharmaceutical exports to the U.S. has played a significant role in the overall growth of Bangladesh’s pharmaceutical exports.

In the Philippines, $15 million worth of medicines were exported in the 2022-23 fiscal year, increasing to $16.2 million in the first 11 months of the last fiscal year. In Afghanistan, $10.6 million worth of medicines were exported in the 2022-23 fiscal year, but this figure dropped to $8.9 million in the following fiscal year’s first 11 months.