Islamabad 15 August: Pakistan’s pharma sectors are setting their sights on the US market expansion after a sharp jump in sector exports and a shifting US tariff landscape that leaves many medicines duty-free at the border.
Industry data show pharmaceutical exports surged 34% in FY25 to about $457 million, the fastest growth in two decades and a clear break from the modest gains of recent years. The performance follows pricing deregulation and capacity upgrades, according to multiple reports citing Pakistan Bureau of Statistics figures.
At the same time, most finished medicaments under HTS Chapter 30 enter the US at a “Free” (0%) MFN duty, which insulates many pharma lines from the broader, newly introduced reciprocal tariff regime. That carve-out—confirmed in the current US Harmonized Tariff Schedule—creates a comparative opening for Pakistani suppliers able to meet FDA and cGMP requirements.
READ MORE: Pakistan Pharma Exports Hit Record $457M in FY25
For now, Pakistan’s direct footprint in the US market remains small—US imports of Pakistani pharmaceutical products totaled roughly $0.6 million in 2024—but exporters say the combination of rapid local growth and zero base US tariffs makes the world’s largest pharma market newly attractive for generics, OTCs and select specialty products.
Trade officials add that recent US tariff actions have largely spared pharmaceuticals even as other categories have seen hikes, reinforcing the “duty-free” channel for compliant drug shipments. Pakistani firms are therefore prioritizing US-facing investments—bioequivalence studies, ANDA filings, serialization, and quality audits—to convert tariff access into orders.
Pakistan pharmaceutical exports — quick stats
| Period | Exports (US$ mn) | YoY change |
|---|---|---|
| FY23 | 328.21 | — |
| FY24 | 341.02 | +3.9% |
| FY25 | 457.00 | +34% |
Sources: Pakistan Bureau of Statistics data as reported by The Nation/APPP (FY23–FY24) and Profit/Business Recorder (FY25). Figures mix fiscal-year reporting; minor revisions possible.
US market snapshot
- US tariff on most finished medicaments (HTS 3004): 0% (MFN), per current HTS.
- US imports from Pakistan (HS 30) in 2024: ~$0.61 mn (very low base).
What it means
- Low-tariff gateway: With medicines typically duty-free, price competitiveness will hinge on scale, compliance and supply reliability—not customs duties.
- Regulatory is decisive: Winning in the US will depend on ANDA approvals, FDA-audited facilities and consistent GMP—areas several Pakistani firms are now investing in.
- Upside from a small base: The sector’s FY25 jump provides momentum, but converting the US opportunity requires pipeline, quality certifications and distribution partners.
