Export Ban to Pakistan Won't Impact Himachal's Pharma Sector

The Centre's latest move to impose a ban on the export of pharmaceuticals to Pakistan, after the April 22 terror attack in Pahalgam, which killed 26 people, will have negligible or no effect on Himachal Pradesh's pharmaceutical industry, say industry professionals. Pharmaceutical trade with Pakistan has always been marginal, especially from the state's major Baddi-Barotiwala-Nalagarh (BBN) Industrial Area, which is globally accepted as Asia's pharmacy hub, boasting more than 350 units.

Despite the BBN cluster's preponderance in pharmaceutical production, Pakistan has never ranked as a primary export market. Industry sources explain that Pakistan normally imports certain anti-cancer medications and active pharmaceutical ingredients (APIs) from Gujarat- and Indore-based manufacturers. Manufacturers based in Himachal have, however, mostly avoided cultivating trade relationships with the neighbouring country. One major deterrent has been the exchange rate difference—at the time of prohibition, one US dollar was worth about 281.25 Pakistani rupees, rendering Indian exports too costly for Pakistani consumers.

President of the Himachal Drug Manufacturers Association Dr Rajesh Gupta said the ban would have "nil impact" on the pharmaceutical industry in the state as there has been no trade with Pakistan till date. Though the Department of Pharmaceuticals is collecting detailed export data for the last two years, local industry bodies have asked manufacturers to stay on their guard to central government notices and steer clear of any inadvertent shipments to Pakistan, if any exception applies.