Staff Reporter:
Bangladesh’s pharmaceutical industry is now capable of meeting nearly the entire demand of the local market. However, the core raw materials for medicine production – Active Pharmaceutical Ingredients (APIs) – are still largely imported from abroad. This dependency increases pressure on foreign currency reserves and makes local production vulnerable to global market instability.
In light of this reality, experts have urged for policy support and the removal of barriers to enhance local production of pharmaceutical raw materials. They have also proposed the formation of a permanent taskforce to advance the development of the API industry. These views were expressed on Wednesday at a discussion titled “Policy and Implementation Strategy for the Development of the API Industry,” held at the auditorium of the Super Specialized Hospital of Bangabandhu Sheikh Mujib Medical University (BSMMU). The event was organized by the Alliance for Health Reforms, Bangladesh (AHRB).
The session was moderated by Professor Dr. Syed Akram Hossain, Chairman of the Clinical Oncology Department at BSMMU. The keynote paper was presented by Dr. Syed Abdul Hamid, Professor at the Institute of Health Economics and Convener of AHRB.
Dr. Hamid said that increasing local production of raw materials would make the medicine supply chain more stable, reduce production costs, and keep prices within the reach of ordinary people.
He proposed that to encourage investment in the API sector, initiatives could be taken through the Ministry of Finance and Bangladesh Bank to introduce refinancing facilities, low-interest loans, and credit guarantee schemes.
Dr. Hamid further stated that Bangladesh could provide up to 20% incentive for this sector, similar to India and China. He also recommended introducing research grants to promote innovation and compliance grants to ensure international standards are met.
According to the experts, after Bangladesh graduates from the Least Developed Country (LDC) category, competition in the pharmaceutical sector will intensify. To remain competitive, there is no alternative to domestic API production.
They said that with a long-term plan based on public-private partnership, Bangladesh could achieve self-sufficiency in raw material production within a short time.
Dr. Md. Zakir Hossain, Secretary General of the Bangladesh Association of Pharmaceutical Industries (BAPI), said that to advance the API industry, realistic policy support is essential – forming committees alone will not help.
He noted, “In the last one and a half months, the government has formed several committees, but there is no representation from BAPI or the API industry. To move this sector forward, stakeholder opinions are indispensable.”
Dr. Zakir Hossain further said, “At present, our API raw materials come from China and India. But we cannot import raw materials at a price that allows us to compete with them. Without policy-level support from the government, this industry will never become sustainable.
He complained, “We have already paid for the land in the API Park, but we are getting no return from that investment. Although plots were allocated in 2018, we are being told that electricity connections will come only in 2025. While the government has collected money for land and interest, infrastructural facilities remain uncertain.”
The BAPI Secretary General added, “There is no representation of stakeholders in the API Industry Park. How can those who sit on the committees understand our real challenges? Administrative complexities must be resolved – otherwise, there will be unnecessary delays in plot handovers, plot exchanges, or obtaining approvals for controlled substances.”
Saifur Rahman, President of the Bangladesh API and Intermediaries Manufacturers Association (BAIMA), said that since Bangladesh must compete with India and China, it is crucial to understand their strategies for API industry expansion. “India has formed a permanent taskforce to strengthen its API sector. Similarly, we must form a permanent taskforce in Bangladesh with all relevant stakeholders,” he said.
Muhammad Halimuzzaman, Treasurer of BAPI, said, “Encouraged by the government, we took a loan of Tk 490 crore and established a factory at the API Park two years ago. Now, we are paying Tk 2 million in interest every day. Yet, the government is now saying there will be no gas supply. Under such conditions, no one else will be foolish enough to invest in the API Park.”
Dr. Ahmed Ehsanur Rahman, scientist at icddr,b and member of the Health Sector Reform Commission, said, “I know 90% of the problems facing the API industry. These issues have been discussed for more than a decade, but no solution has been achieved. Before anything else, the government and companies must establish a clear and unified vision for the API sector.”
