Private health sector struggles with licensing delays
Staff Reporter :
Bangladesh’s private healthcare industry is grappling with a series of structural obstacles, including complex licensing procedures, high reliance on imported medical devices, and slow progress in domestic active pharmaceutical ingredient (API) production. Stakeholders say that addressing these weaknesses is essential as the country prepares for LDC graduation.
Business leaders came up with these remarks on Tuesday at an FBCCI discussion titled “Private Sector Participation in Bangladesh’s Health Sector: Opportunities and Challenges” called for stronger public-private partnerships, rationalising drug prices, boosting API production, and streamlining the licensing regime.
JMI Group Chairman Abdur Razzaq noted that while Bangladesh can manufacture almost 99% of its medicines, domestic production of medical devices is stuck at just 5-10% due to the absence of proper policy support.
“We never formulated a dedicated policy for medical devices. Without policy backing, the pharmaceutical industry would not have grown the way it has,” he said. Razzaq added that production costs have surged because the dollar rate jumped from Tk87 to Tk123 and raw material prices rose by 40%.
Major General Mostafizur Rahman, CEO of the Bangladesh Association of Pharmaceutical Industries, warned that rising costs and the absence of timely price revisions are forcing companies to shut down.
“No new prices have been approved in the last 18 months. When companies apply, they face legal hurdles,” he said, adding that 13-14 companies have already closed.
He pointed out that heavy import dependence and approval requirements involving up to 47 agencies are delaying API production and undermining the sector’s competitiveness.
Rahman also said that despite substantial investment, the API Park cannot function fully due to shortages of gas and electricity.
“There is a shortage of trained manpower, and academia-industry collaboration is almost nonexistent,” he added, noting that revised university curricula have been pending with the UGC for more than a year.
Speakers stressed that licensing delays have severely disrupted operations. Narcotics licences take 15 days to over a month, companies must dedicate staff solely to follow up on paperwork, and environmental clearance requires more than 20 types of documents-causing long delays. Many firms therefore operate without complete licences, weakening regulatory oversight.
BRAC Senior Director Dr Md Akramul Islam said urgent reform of the licensing system is essential, especially to expand private sector involvement in services for low-income communities.
Directorate General of Drug Administration (DGDA) Director Ashraf Hossain said it typically takes a pharmaceutical firm around five years to break even, emphasising the need for proper feasibility studies before entering the industry.
“We do not keep files pending. Many claim there are counterfeit medicines, but few provide credible evidence,” he said.
In a keynote presentation, University of Dhaka Health Economics Professor Dr Sayed Abdul Hamid said the country’s medical equipment market has grown to Tk15,000 crore, yet local manufacturers remain disadvantaged.
He noted that 80% of raw materials are imported, and in some cases tariffs on inputs are higher than those on finished products-such as a 250% tariff on burette infusion set components compared to 10% on the finished item. He said the influx of low-cost, substandard devices due to weak enforcement further harms the industry.
Hamid recommended VAT exemptions for 10-15 years, tariff rationalisation, restricting imports of items already produced locally, and stronger regulatory action against unauthentic products. He said that despite the pharmaceutical market reaching $4 billion, the sector is vulnerable because of its reliance on imported APIs.
“We adopted an API policy only in 2018. Countries like China and India offered strong support to develop their API sector-we must do the same,” he said.
BIDA Director General (Research and Policy) Gazi AKM Fazlul Haque said that BIDA is now developing a policy for medical equipment, with a draft to be submitted to the Ministry of Health. He added that pharmaceutical firms must prioritise expanding API production, registering new products, and investing in research to prepare for LDC graduation.
Health Secretary Saidur Rahman acknowledged that complicated licensing rules have left many facilities outside regulatory monitoring.
“We will work to shift renewal to a three-year cycle, but quality standards will not be compromised,” he said.
He outlined major gaps in diagnostic services, urban primary healthcare, workforce capacity, and emergency care, noting that PPP models could help address these deficiencies.
Universal Medical College Chairman Priti Chakraborty warned that high treatment costs continue to drive families into poverty, stressing that expanding health insurance is essential for financial protection.