Abstract
This study explores Pakistan-India trade in commodities and services within the health sector. We investigate existing trading patterns (by calculating a trade intensity index) along with the potential for trade between Pakistan and India (through a trade complementarity index) in three commodities: medical equipment, pharmaceutical products, and surgical instruments.
Using import-export data, we found that between 2003 and 2011, Pak-India trade intensity (in relation to Pakistan’s total trade) was extremely low. Once we identified the drivers of trade in the three commodities, we found that Pakistan imports from the world commodities that are India’s leading exports to the world, with the converse holding true for Pakistan, at least for surgical and pharmaceutical goods. There is, thus, high potential for trade in the three commodities, especially at the intra-industry level. Gains would be much higher if trade in these sectors was liberalized on the Pakistani side by removing key Indian exports from Pakistan’s negative list and if Pakistani exports were allowed easier access to the Indian market.
This chapter also examines trade in health services, particularly research and collaboration in medicine and pharmaceuticals, movement of medical personnel and patients, and student exchange or training programs. Our qualitative analysis indicates that there is evidence of medical tourism particularly from Pakistan to India, but this is largely driven by individual efforts. There is no bilateral institutional mechanism through which collaborative research in medicine and pharmaceuticals can be undertaken.
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Notes
- 1.
See “Medical Tourism Statistics and Facts” at http://www.patientsbeyondborders.com/medical-tourism-statistics-facts
- 2.
Pakistan Economic Forum II- Regional Trade Report 2013. Available at www.pbc.org.pk/assets/pdf/regional_report.pdf
- 3.
A brief report on pharmaceutical industry in India. March 2013. Corporate Catalyst India. Available at http://www.cci.in/pdfs/surveys-reports/Pharmaceutical-Industry-in-India.pdf
- 4.
Ibid.
- 5.
India Pharma Industry. Available at http://www.pharmaceutical-drug-manufacturers.com/pharma-industry-statistics/
- 6.
Indian Pharma Industry – An overview. April 13, 2012. Available at http://www.indiabiznews.com/?q=node/2873
- 7.
Pharma industry’s fears: Free trade may bring inferior drugs from India. October 7, 2012, The Express Tribune. Available at http://tribune.com.pk/story/448099/pharma-industrys-fears-free-trade-may-bring-inferior-drugs-from-india/
- 8.
Available at http://ppapak.org.pk/drugz.php
- 9.
India Pharma 2020: Propelling access and acceptance, realizing true potential Available at http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/India_Pharma_2020.pdf
- 10.
Indian Pharmaceutical Industry-Future Trends. Available at http://www.pharmaceutical-drug-manufacturers.com/articles/indian-pharmaceutical-industry.html
- 11.
National pharmaceutical pricing policy 2012, Government of India. Available at http://nppaindia.nic.in/index1.html
- 12.
New price control regime to cut drugs cost by up to 80 %. FirstPost. Available at http://www.firstpost.com/business/new-price-control-regime-to-cut-drugs-cost-by-up-to-80-790801.html
- 13.
India Pharmaceutical Industry Profile 2011. Organization of pharmaceutical producers of India. Available at http://www.indiaoppi.com/IndiaOTCpharmaProfile2011.pdf
- 14.
India Pharmaceutical Industry Profile 2011. Organization of pharmaceutical producers of India. Available at http://www.indiaoppi.com/IndiaOTCpharmaProfile2011.pdf
- 15.
Indian Pharma Industry – An overview. April 13, 2012. Available at http://www.indiabiznews.com/?q=node/2873
- 16.
Pharmaceutical Industry Profile 2011. Organization of pharmaceutical producers of India. Available at http://www.indiaoppi.com/IndiaOTCpharmaProfile2011.pdf
- 17.
India Pharmaceutical Industry Profile 2011. Organization of pharmaceutical producers of India. Available at http://www.indiaoppi.com/IndiaOTCpharmaProfile2011.pdf
- 18.
Ibid.
- 19.
Ibid.
- 20.
This category (901839) subsumes ten subcategories including dextrose and saline infusion-giving sets, suction, catheters, cannulae, surgical needles, endotracheal tubes, and medical balloons.
- 21.
In this product category [3004], at the 6-digit level, there were two common subcategories: 300490 (Unani, Ayurvedic, homeopathic, and other oriental medicines, as well as eyedrops, cough syrups, paracetamol, sulfa drugs, medicinal ointments, and aspirin) and 300420 (other antibiotics, containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives).
- 22.
Trade in Health Services in Pakistan: A country case study http://www.who.int/trade/en/4.9_Z_Mirza_GATS_and_Pakistan_NOT_presented.pdf
- 23.
“STOP! Before it GATS too late” http://healthcare.financialexpress.com/200701/market19.shtml
- 24.
“Domestic Preparedness of India in Trade in Services” www.cuts-citee.org/ppt/STNC-1.pp
- 25.
“Medical Visas Mark Growth of Indian Medical Tourism” See http://www.who.int/bulletin/volumes/85/3/07-010307/en/
- 26.
- 27.
- 28.
- 29.
- 30.
Untapped market: Can Pakistan become a hub for medical tourism? http://tribune.com.pk/story/365757/untapped-market-can-pakistan-become-a-hub-for-medical-tourism/
- 31.
Pakistan appoints task force on medical tourism. http://www.eturbonews.com/13941/pakistan-appoints-task-force-medical-tourism
- 32.
Roundtable at FPCCI on promotion of medical tourism http://www.dailytimes.com.pk/default.asp?page=2013%5C03%5C24%5Cstory_24-3-2013_pg5_11
- 33.
- 34.
- 35.
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Majid, H., Mukhtar, N. (2015). Pakistan-India Trade: An Analysis of the Health Sector. In: Taneja, N., Pohit, S. (eds) India-Pakistan Trade. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1949-1_10
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