Local active pharmaceutical ingredient (API) producers have sought a low-cost refinancing facility, aiming to avail affordable capital for the sector.
They have also requested the authorities concerned to expedite the implementation of the API policy 2018 in order to provide the promised incentives.
The Bangladesh API and Intermediaries Manufacturers Association (BAIMA) recently wrote to the finance ministry in this regard. The finance adviser has asked the finance secretary to look into it and take required steps.
A ministry official said they were scrutinising the matter to take the next course of action.
Bangladesh currently imports 90 per cent of its APIs, resulting in an annual outflow of foreign currency exceeding $1 billion. Developing a robust local API industry can significantly reduce this dependency on imports, thus conserving valuable foreign exchange reserves, according to BAIMA.
Manufacturers believe producing APIs domestically will protect the local pharmaceutical sector from global supply chain disruptions and price volatility, ensuring a stable and affordable supply of raw materials to meet the healthcare needs of the growing population.
Beyond serving as an import substitute, the API sector also has immense potential to become a vibrant export industry. Countries like China and India have demonstrated how a well-supported API industry can drive billions of dollars in export revenue, BAIMA said.
It claimed with targeted investments and policy support, Bangladesh could capitalise on this opportunity, generating significant export revenues and strengthening the country’s position in the global pharmaceutical value chain.
An API producer said supporting the sector would help reduce unemployment, particularly among the educated youth, and drive socioeconomic development by creating sustainable, knowledge-based jobs.
He also said the World Trade Organisation’s TRIPS Agreement had provided Bangladesh with crucial flexibilities as a least developed country (LDC), allowing it to manufacture generic medicines without stringent patent restrictions.
However, the BAIMA letter noted that this opportunity was temporary as the flexibilities were set to expire upon Bangladesh’s graduation from the LDC status. It said developing a strong API sector was essential to prepare for the post-TRIPS era.
Without a robust domestic API industry, Bangladesh would face increased costs of patented medicines, undermining the affordability of healthcare for its citizens, the letter further said.
In the letter, BAIMA President SM Saifur Rhaman said China and India had built globally-competitive API industries through strategic policy interventions, financial support, and research and development incentives.
“The API sector has the potential to transform Bangladesh’s economy by saving currency, generating export revenue, and creating jobs. However, this potential cannot be realised without proactive government support.”