Call for direct supervision of CA to implement API policy

Staff Reporter :

The Alliance for Health Reforms Bangladesh (AHRB) has called for the swift implementation of the Active Pharmaceutical Ingredient (API) Policy to strategically transform Bangladesh’s pharmaceutical industry and strengthen national health security.
In an open letter sent to the Chief Adviser on Sunday, the organisation requested that the policy be treated as a “top national priority.” The letter was signed by AHRB Convener Professor Dr Syed Abdul Hamid of the Institute of Health Economics at the University of Dhaka, and Professor Dr Syed Md Akram Hossain, Member of the Health Sector Reform Commission and Chairman of the Clinical Oncology Department at Bangladesh Medical University.
The letter states that although nearly all types of medicines can now be manufactured locally, a large share of APIs are still import-dependent. Any instability in the international market puts the production system and national health security at risk. This weakness became evident during the Covid-19 pandemic.
Citing observations from the Health Reform Commission, the letter stresses the need to rapidly build domestic capacity in API, vaccine, IVD, and medical equipment production.
For this, it is necessary to encourage investment in research and development (R&D), offer incentives, and gradually restrict imports once local production capacity is achieved.
The letter describes the implementation of the National Drug Policy of 1982 as a “historic success.” Political commitment, strict supervision, and strong leadership at that time brought transformative changes to the pharmaceutical sector. This example demonstrates that strong leadership at the highest level is essential for implementing major policies.
Experts warn that unless the country transitions to a knowledge-based industry, Bangladesh’s tax-to-GDP ratio will remain below 7 percent. The pharmaceutical sector has the potential to play a major role in this transformation. While 5 percent of India’s total exports come from the pharmaceutical industry, in Bangladesh the figure is still only 0.5 percent. Citing Nobel laureate economist Joel Mokyr-“Knowledge is the main driver of the modern economy”-the letter underscores the urgency of transforming this sector into a sustainable, knowledge-based industry.
The letter outlines five urgent steps for effective implementation of the API policy: Removal of administrative and infrastructural barriers, Launch of an attractive Production-Linked Incentive (PLI) scheme, Consistent government grants for R&D, Strengthening academia-industry collaboration, Formation of an empowered permanent task force with a fixed timeline for implementation.
The letter cautions that the policy will not advance spontaneously within the bureaucratic system; therefore, clear directives and close monitoring from the highest level of government are essential.
If the Chief Adviser and Finance Adviser Ensure Direct Oversight-
The API policy will not remain stuck on paper, Import dependence will decrease, saving foreign exchange, Exports will rise, strengthening Bangladesh’s position in the global market within a decade, Skilled employment will increase, and the tax-to-GDP ratio will improve.
The letter concludes by stating that this is not merely an administrative decision-it is a strategic national commitment linked to Bangladesh’s future competitiveness, capacity, and public health security.