Dr. Lokiyat Ullah
Medicine is a life-saving essential commodity. Bangladesh is now almost self-sufficient in pharmaceutical production. Currently, about 98% of the country’s demand for medicine is met by local production. Only a small number of specialized medicines are imported. A

significant portion of these medicines are now being produced by domestic pharmaceutical companies, gradually reducing dependence on
foreign imports. In fact, after meeting domestic needs, surplus medicines are now being exported abroad. As a result, local pharmaceutical companies are enhancing their capacities to thrive in a competitive global market. Consequently, Bangladesh’s pharmaceutical industry
has established a strong position globally while fulfilling domestic demand. Among developing nations, Bangladesh stands out as the only country capable of competing with global pharmaceutical giants. This has played a vital role in boosting exports. The
country now produces medicines of international standards, with annual exports increasing consistently. Thanks to their high quality and affordability, Bangladeshi medicines enjoy strong demand overseas. This success is undoubtedly a significant milestone, the foundation
of which was laid in the 1980s. Back then, Bangladesh’s pharmaceutical industry was largely dominated by foreign companies. Local firms could not compete, and nearly 80% of medicines were imported, while only 20% came from domestic manufacturers.
To develop the pharmaceutical sector, the government established the Directorate of Drug Administration under the Ministry of Health and Family Welfare in 1974. In 1982, the Drug Control Ordinance was introduced, giving utmost importance to the growth of the local
industry. This step proved revolutionary. It included pricing regulations for all types of essential medicines including antibiotics and injections. Simultaneously, over 1,500 imported medicines were banned, and national drug policy was amended to stipulate that if a medicine could be locally produced, it should not be imported. Additionally, 150 medicines were listed as essential. As these policies were implemented, the dominance of foreign companies began to diminish,and Bangladesh started progressing toward pharmaceutical self-sufficiency. Thanks to various government initiatives and policies, both exports and the domestic market have expanded significantly. At least 50 companies are now involved in large-scale export activities, with Bangladeshi medicines reaching 43 countries in Asia, 26 in South America, 6 in North America, 39 in Africa, 38 in Europe, and 5 in Australia. According to the Directorate General of Drug Administration, in the last 10 years, medicines worth approximately BDT 32,336 crore have been exported from Bangladesh. Currently,
there are 295 allopathic pharmaceutical manufacturing companies in the country, producing medicines and raw materials worth BDT 46,985 crore. In addition, 284 Unani, 205 Ayurvedic, 71 Homeopathic, and 31 Herbal medicine producers contribute about BDT 1,000
crore in production. The national drug policy of the early 1980s freed the domestic industry from the monopolistic
grip of foreign companies, allowing local businesses to grow. After fulfilling local demand, Bangladesh began exporting medicines in 1985. Considering the importance of this sector, the 1982 Drug Ordinance and National Drug Policy were reviewed and revised in 2005 and
again in 2016. In 2010, the Directorate was upgraded to a full-fledged department, now the sole licensing and regulatory authority for pharmaceuticals in the country. Regulation is governed by the Drug Act 1940, Drug Rules 1945, Bengal Drug Rules 1946, and various
government directives.Currently, the country’s pharmaceutical market is valued at BDT 30,059 crore, growing at an
annual rate of 2.04%, according to the IQVIA Q4 2023 report. Domestic pharmaceutical companies meet 98% of local demand and export to at least 157 countries. Although exports were already increasing, the COVID-19 pandemic significantly boosted global demand for
Bangladeshi medicines like remdesivir and favipiravir. Governments of various countries sent requisitions for these drugs, and remdesivir, in particular, was exported in large quantities. The Directorate approved the urgent production and export of such medicines
during the crisis. Due to rapid production, high quality, and affordability, Bangladesh earned global acclaim. The pharmaceutical sector now ranks just behind the ready-made garments industry in terms of economic contribution. It is a high-potential sector, producing various vaccines, meeting local demand, and supplying international-standard medicines globally. This success has been
made possible through the tireless efforts of skilled entrepreneurs, pharmacists, chemists,biotechnologists, doctors, and engineers, as well as continued government support.Before the 1980s, exporting medicines to countries like the US, Europe, and Latin America
was unimaginable. Today, Bangladeshi medicines are sold in those regions. This is a remarkable achievement for the industry. However, according to stakeholders, about 90% of the raw materials used in medicines are still imported, costing a significant amount of foreign
exchange. Reducing this dependency is essential. While the country is self-sufficient in finished products, the same must be achieved for raw materials. Otherwise, the industry may face serious risks. Sufficient investment in research, discovery of new molecules, bioactive
components, and analog compounds is also crucial. Countries like India and China are far ahead in such research, while Bangladesh lags behind.Recognizing this, the government has initiated the development of an API (Active Pharmaceutical Ingredients) park on 216 acres in Gazaria, Munshiganj. Once operational, this park will help meet domestic demand for raw materials and reduce import dependency.
Additionally, Bangladesh will graduate from a Least Developed Country (LDC) to a developing country by 2026. Consequently, it will lose certain benefits under the TRIPS waiver that previously allowed it to produce patented medicines without paying royalties.
Post-2026, Bangladesh’s companies will have to pay for patents, potentially increasing drug prices beyond public affordability and leading to shortages.

Bangladesh remains the only LDC with the capacity to produce any medicine. Under the WTO TRIPS agreement, Bangladesh can produce and export patented medicines without restriction until 2034. However, post-2026, this waiver may no longer apply. The government
must continue negotiations with the WTO to retain these privileges until 2034, even after LDC graduation. According to the Bangladesh Association of Pharmaceutical Industries, drug prices in Bangladesh are still 30% lower than in international markets. But rising dollar
rates and inflation have increased production costs by 30–45%. Maintaining product quality while keeping prices unchanged is becoming difficult. The pharmaceutical sector is a rapidly growing private industry that significantly contributes to the GDP and foreign exchange earnings. It also creates massive employment opportunities, playing a key role in reducing unemployment. Therefore, it is crucial that the governmentensures necessary support and expedites the operationalization of the API park. This would enable the industry to meet domestic needs while earning substantial foreign exchange through exports.
The writer is a   managing director, BioPharma Ltd.Vice President, Asian-African Chamber of Commerce  Industries. Recipient of the Global Philanthropy Award from the British Parliament