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Indian pharma upholds Union govt’s blanket ban on trade with Pakistan in response to national security concerns
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Nandita Vijayasimha, Bengaluru
May 07 , 2025
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The Indian pharmaceutical industry has largely supported the Union government's comprehensive trade ban on Pakistan, observing it as a crucial response to national security concern. The companies have expressed cautious support to the government's decision. While the ban impacts exports of active pharmaceutical ingredients (APIs) and finished formulations to Pakistan, industry chiefs accept the importance of national security and tackle cross-border terrorism.
Pakistan strongly depends on India for affordable and high-quality pharmaceuticals and APIs. The anticipated 400% to 1000% price hike in drugs could render essential medicines unaffordable for large segments of the population. Public health could suffer due to shortages and lack of affordability of medicines, for diseases like diabetes, hypertension and cancer.
It is reported, “The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has acknowledged the government's stance, emphasizing the need for strategic responses to ensure the safety and security of the country. The council is in discussions with the government to explore alternative markets and mitigate the impact on the pharmaceutical sector.”
“The halt of trade with Pakistan covering direct exports, transit goods, and third-country exports marks a significant economic shift with major consequences affecting the pharma sector critically. Sudden trade ban results in price volatility, supply shortages,” according to a report.
Noting the seriousness of the issue between India and Pakistan with the Pahalgam fallout, Harish K Jain, president, Federation of Pharmaceutical Entrepreneurs (FOPE) and director, Embiotic Labs, said, “Even if business is huge, in the national interest it is worth the sacrifice. If our brothers and sisters are being killed by enemies, lessons need to be taught. We are fully supportive with the decisions of our Government of India. No normalcy can prevail in trade till terrorism is wiped out.”
Currently, India exports more of APIs going by the production plants for formulations in Pakistan. Therefore, Pakistan does not import that much of formulation. Nevertheless, India as the ‘Pharmacy of the World’ for generics, our quality and range of medications are available in Pakistan through distributors from other countries of the Middle East, added Jain.
To boost and sustain local formulation manufacture, Pakistan looks at not just India for APIs but imported from China also. Therefore, China API exports gain during this unforeseen turmoil. Much of the formulation supplies are sourced from Bangladesh, stated the FOPE president.
Manoj Palrecha, president, Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA) and managing director, Lake Chemicals said, India’s exports to Pakistan in terms of value of exports to the world is ranked at 35 and that is insignificant. Yes, no doubt, it might be a loss to many of the companies who all are exposed to that market but that is always the case in the event of any geopolitical related issue. We as a nation must welcome any of the Government of India’s decisions.
Jatish Sheth, secretary general, Confederation of Indian Pharmaceutical Industry (CIPI), co-chairman-nominated, KDPMA and director Srushti Pharma noted that most of the pharma exports to Pakistan are from India via another country. That arrangement is in place since a long time. No doubt, the broader economic ramifications is that this is resulting in a regional trade setback. It undermines the potential of regional economic integration in South Asia through SAARC or SAFTA frameworks.
All said, Jatish pointed out, “Cross border terrorism has to end at any cost and any country which supports terrorism has to be taught a lesson. We as citizens of India must sacrifice to support the Government of India's decisions.”
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