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India–Pakistan Trade: A Case Study of the Pharmaceutical Sector

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India-Pakistan Trade Normalisation

Abstract

This paper attempts to evaluate the possible gains and losses arising from the gradual opening up of pharmaceutical trade between India and Pakistan. We explain the comparative advantages of both countries at a disaggregated level, followed by a qualitative analysis of various perceptions and experiences of Pakistan’s pharmaceutical manufacturers with respect to trade with India. We find that a gradual opening up of pharmaceutical trade with India may allow Pakistan to enhance the quality of locally produced medicines through raw material, intermediate inputs, knowledge, and skills transfer from India. Pakistan, in the medium to long run, may also be able to diversify its pharmaceutical export base, reduce cost of production and achieve higher competitiveness through the development of value chain linkages with India. Such linkages are important to cater to the projected rise in demand for pharmaceuticals in Pakistan, Afghanistan and abroad.

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Notes

  1. 1.

    The statistics here pertain to Chap. 30, i.e. pharmaceutical products, only.

  2. 2.

    All these products are listed at the 8-digit level.

  3. 3.

    Leading consumer groups from Islamabad and Karachi participated in our focus group discussion.

  4. 4.

    The organisation does not even have a website.

Abbreviations

APIs:

Active pharmaceutical ingredients

BoI:

Board of investment

DRAP:

Drug regulatory authority of Pakistan

FDGs:

Focus group discussions

FDI:

Foreign direct investment

GDP:

Gross domestic product

GoP:

Government of Pakistan

HS Classification:

Harmonised system of classification

IBM:

Institute of Business Management

INR:

Indian rupee

ITC:

International trade centre

MFN:

Most favoured nation

MNCs:

Multi-national companies

MoC:

Ministry of Commerce, Pakistan

n.e.s:

Not elsewhere specified

NHSRC:

National Health Services Regulation and Coordination Division

OICCI:

Overseas Investors Chamber of Commerce and Industry

PKR:

Pakistani rupee

PPA:

Pakistan Pharmacist Association

PPMA:

Pakistan Pharmaceutical Manufacturers Association

QC:

Quality control

R&D:

Research and development

RCA:

Revealed comparative advantage

SMEDA:

Small and Medium Enterprise Development Authority

TDAP:

Trade Development Authority of Pakistan

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Authors and Affiliations

  1. SDPI, Islamabad, Pakistan

    Vaqar Ahmed & Samavia Batool

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  1. Vaqar Ahmed
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  2. Samavia Batool
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Correspondence to Vaqar Ahmed .

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Editors and Affiliations

  1. Indian Council for Research on International Economic Relations, New Delhi, Delhi, India

    Nisha Taneja

  2. Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India

    Isha Dayal

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Ahmed, V., Batool, S. (2017). India–Pakistan Trade: A Case Study of the Pharmaceutical Sector. In: Taneja, N., Dayal, I. (eds) India-Pakistan Trade Normalisation. Springer, Singapore. https://doi.org/10.1007/978-981-10-2215-9_7

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  • DOI: https://doi.org/10.1007/978-981-10-2215-9_7

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