Healthcare Pakistan

An Expert's View about Healthcare in Pakistan

Posted on: 4 Oct 2010

Healthcare sector in Pakistan offers a good opportunity for British companies. The sector is under developed and attempts are being made to develop and modernise the sector.

[Healthcare] ? [Pakistan] Sector Report Healthcare Pakistan Produced by: Saima Anjarwala, Trade & Investment Officer, Pakistan Last revised 22 January 10 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2009 by UK Trade & Investment. Crown Copyright © [Healthcare] ? [Pakistan] Table of Contents OVERVIEW 3 OPPORTUNITIES 3 CHARACTERISTICS OF MARKET 6 KEY METHODS OF DOING BUSINESS 7 MORE DETAILED SECTOR REPORTS 8 EVENTS 8 CONTACT LISTS 9 Page 2 of 9 [Healthcare] ? [Pakistan] OVERVIEW Healthcare sector in Pakistan offers a good opportunity for British companies. The sector is under developed and attempts are being made to develop and modernise the sector. Pakistan does not have local manufacturing expertise in any product apart from surgical goods and exports all essential products like medical devices, equipment and machinery. Furthermore, there is a great need for trained and skilled personnel with a top of the line research facilities. There are many foreign companies that have established their own manufacturing or have agents selling their products. Healthcare is an important sector in Pakistan. Pakistan is the 6th most populous country with a population of 170 million. The population is expected to reach 194 million by the year 2020 with the current growth rate of 2%. Pakistan?s ranking is 142 in the human development index (HDI). According to the latest Ministry of Health Pakistan statistics, there were 13,937 health institutions in the country including 965 hospitals (with a total of 105,005 hospital beds i.e. ratio to population per bed is 1,515), 4,916 dispensaries, 4,872 Basic Health Units (mostly in rural areas), 1,138 Mother and Child Care Centers, 595 rural health centers and 371 TB centers. OPPORTUNITIES The strategy of health sector reform is to achieve accessible quality health care for all. The policy document identifies ten key areas: 1. Reducing widespread prevalence of communicable diseases; 2. Addressing inadequacies in primary/secondary health care services; 3. Removing professional/managerial deficiencies in the district health system; 4. Promoting greater gender equity; 5. Bridging basic nutrition gaps in the target-population; 6. Correcting urban bias in health sector; 7. Introducing required regulation in private medical sector; 8. Creating Mass Awareness in Public Health; 9. Effecting Improvements in the Drug Sector; and 10. Capacity-building for Health Policy Monitoring. Prevention is better than the cure. Pakistan is spending 18 percent of its health budget on Preventive Measures and Health Facilities. Public sector expenditures in Preventive Measures and Health Facilities sub-sector are progressive at provincial and regional level, except in overall rural Pakistan. It means the public sector spending on Preventive Measures and Health Facilities are more evenly distributed as compared to the income distribution. Expenditure on Preventive Measures and Health Facilities are highly subsidised by the federal government in Pakistan through its vertical programmes. These federally funded (in collaboration with the development partners) vertical programmes include: ? Lady Health Worker Programme ? Malaria Control Programme ? Tuberculosis and HIV/AIDS Control Programme ? National Maternal and Child Health Programme ? the Expanded Programme on Immunisation ? Cancer Treatment Programme ? Food and Nutrition Programme, and; ? the Prime Minister Programme for Preventive and Control of Hepatitis A & B. Page 3 of 9 [Healthcare] ? [Pakistan] Government spending in the above sub-sector is more effective and progressive as these facilities are free for all and there is no household out-of-pocket expenses involved. The poor can not afford the high costs of private hospitals, that is why they tend to consult government Hospitals and Clinics where the costs are much lower compared to private health care centres. On the other hand, the high-income groups prefer to get their medical treatment from private health care centres where they enjoy better quality of health care facilities. Academics According to the Economic Survey of Pakistan there were 85 physicians for every 100,000 persons in Pakistan, or in other words, one doctor for 1,475 people. In contrast to most countries, we a have a dearth of nurses and there are only 65,387 nurses all over the nation who are supplemented with a strong force of 96,000 Lady Health Workers (primary heath care providers). All over Pakistan, academic institutions in Healthcare sector are 64 Teaching hospitals with 68 Medical Colleges and only 14 nursing schools. According to the WHO international standards, the ratio of doctors to nurses should be 1:3; however this is reversed in the case of Pakistan, i.e. ratio of doctors to nurses is 3:1 in Pakistan. There is a huge opportunity for Medical colleges and Nursing schools to offer distance learning programmes and degrees to the Public and Private, as well as establishment or collaboration of Private Teaching Hospitals. Government has granted Sindh Provincial government Rs. 200 million and 9000 acres of land to build Education Park in Sindh near Malir. Four teaching hospitals have already been allocated land and construction has also started. This presence a unique opportunity for British institutes in the area to market their expertise such as academics collaboration/investment, medical equipment and devices, etc. There is also a growing need for Capacity Building - Planning, Co-ordination, Promotion and Development of Science and Technology; monitoring and evaluation of R & D projects; utilisation of manpower for scientific and technological research. Pharmaceutical Pakistan meets around 70% of its domestic demand of medicines from local production and the rest through imports. The pharmaceutical market size is Rs. 111 Billion (US $ 1.35 Billion) approximately. The market for pharmaceuticals in Pakistan has been expanding at a rate of around 19% over the last few years. There are 450 Pharmaceutical companies out of which 25 are MNCs that enjoy 47% of the market share. Pakistan?s large population, expanding economy including health services, individual rise in purchasing power, general awareness regarding use of new molecules of drugs, etc. provides an ideal environment for investment in this field. The increasing export of Pharmaceuticals from Pakistan is speaking for the quality that is being maintained for manufacturing of Pharmaceuticals. The export market is expanding to almost all the continents of the world covering almost 40 major countries. Presently the Pharmaceutical industry in Pakistan is producing all the major pharmaceutical dosage forms. Similarly, there are some special products e.g. Page 4 of 9 [Healthcare] ? [Pakistan] immunological, anti-cancer drugs, certain anti-diabetics, antidotes and products manufactured from biotechnology, which are still being imported, in the finished form. These specific areas provide excellent opportunities for investment. Only few bulk pharmaceutical raw materials are being manufactured locally and most of the Pharmaceutical raw materials are being imported in large quantities from different counters of the world. Prices of many pharmaceutical products are much higher in Pakistan as compared to India. The core reason behind this is that most of the basic pharmaceutical raw materials are imported. The Pharmaceutical manufacture and trade in Pakistan is regulated through the Drug Act 1976, and the rules framed there under. This is a fairly comprehensive law. Pakistan was the first amongst the developing countries in the world to have introduced Good Manufacturing Practices as a mandatory requirement. The Central Licensing and Registration Board grant registrations. The professionally competent drug inspectorates and laboratory services support the Quality Control system at the federal and provincial level. Medical Devices The medical device sector is a growing segment in Pakistan. Pakistan's medical device market was valued at an estimated US$135 million in 2007. Pakistan does not have any expertise of manufacturing medical devices other than surgical instruments. Pakistan mainly imports from Germany, USA, Japan, China, and Korea or from the Far East. Demand for high technology devices is met by imports. With the increasing medical devices market in UK, Pakistan presents a promising market which is at the moment been taken over by other foreign countries. UK is leading on supplying Scientific, research and analytical instruments to Pakistan. Some of the best sales prospects for medical device market include cancer diagnostic, medical imaging, ultrasonic scanning, and plastic surgery equipment, as well as polymerise chain reaction technologies. Market sources indicated a promising sector is the market for cancer diagnostic equipment. Surgical Instruments Surgical instruments make up the bulk of a limited domestic manufacturing sector, located in the Punjab region at Sialkot. Equipment is of a high standard, the majority destined for export. The industry manufactures about 100 Million instruments annually including Surgical, Dental, Veterinary, Pedicure and Manicure Items, Tailoring Scissors, Barber Saloon Scissors and Beauty Saloon instruments. Limited opportunities exist in this segment, as Pakistan?s surgical instrument industry is sizeably developed. In addition to extra supply to foreign markets, it also caters to the local market. The world market for Surgical Instruments is over US $ 30 billion and Pakistan shares US $ 173 Million in this market. Both Disposable and Reusable instruments are manufactured and exported. Sialkot is the hub of the surgical disposable market in Pakistan. Items produced locally include stainless steel surgical scissors, forceps, cannula, syringes in all Sizes, I.V set, Blood Transfusion Set, E.T.T tube, urine bag, thermometer, round strip, stomach tubes, catheter in all sizes and Polythene gloves. Page 5 of 9 [Healthcare] ? [Pakistan] The local manufacturers of Surgical Disposable cater to the local market and export to the USA, Germany and UK. This is due to improving manufacturing expertise and lower cost of production. Local demand for textile based disposable like bandage and gauze?s, etc. has also been met by the local industry. Local industry experts indicated the imports in the surgical disposable are confined to items that require high tech manufacturing. According to the industry opportunity for UK organisation that can support and provide assistance in getting international certificates for their product and manufacturing units exist. Bio medical Instruments and Diagnostic Equipment In recent years, thousands of new medical centers have been set up all over the country. Reputable medical professionals run the majority of these private centers/clinics. Public sector hospitals procure medical equipment through tenders whereas private hospitals obtain these through distributors and suppliers who can ensure quality, technical services, and backup supplies. Foreign manufacturers benefit by appointing agents in Pakistan?s major cities to market their superior quality products. The increasing involvement of the private sector in health facilities is a positive development for foreign suppliers of used medical equipment to consider marketing their products in Pakistan. Used/recondition equipment is often preferred, as the private sector is price-driven. Most of the large hospitals/organisation prefer to buy new machinery/equipment. Whereas the high value machinery is concerned the preference is for used items e.g. magnetic resonance imaging system, computerised tomography scanners. Pakistan does not have any manufacturing capacity for Bio medical and sophisticated diagnostic instruments/equipment. This segment thus offers sizeable opportunities for foreign suppliers. Both private and public healthcare sector, mainly bank on foreign manufacturers and the market mainly depends on importable instruments. Government owned hospitals are not price conscious they would prefer to buy quality instruments from European, Japanese or American suppliers. Private hospitals opt for less expensive instruments and import from Far Eastern countries such as Hong Kong, China, Korea, Taiwan etc. UKTI publishes international business opportunities gathered by our network of British Embassies, High Commissions and Consulates worldwide. These opportunities appear in the Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting up a profile you can be alerted by email when relevant new opportunities are published. New or updated alert profiles can be set in My Account on the website. CHARACTERISTICS OF MARKET Population of Pakistan is spread over four provinces (Punjab, Sindh, North West Frontier Province and Baluchistan) and four federally administered areas. These are further divided into 126 districts, which have 8575 union councils and 50568 villages. The main health problems are preventable communicable diseases, severe malnutrition and high incident of birth resulting in a high proportion of infant and maternal mortality. There are also clear differentials in health conditions by rural and urban areas and socio-economic groups. Gastro-enteritis, respiratory infections, congenital abnormalities, typhoid fever, Page 6 of 9 [Healthcare] ? [Pakistan] Malaria, Tuberculosis and wide variety of childhood diseases such as diarrhoea, measles and tetanus etc. still continue to pose potential threat to the health of millions of people in the country. Unsanitary condition, polluted water and illiteracy among rural mothers, urban slum and high fertility, small budgetary allocation and inadequate administrative structures have been identified as the main hurdles in the progress of health conditions. Pakistan is disease burden country where 12% of the people in the age groups of 25 years and above is suffering from diabetes and about 10% from Impaired Glucose Tolerance (IGT). Diabetes is nearly as common in the affluent urban population as in the less privileged rural inhabitants. Obesity and particularly central obesity is an important risk factor for diabetes especially in women. The relative risk of being diabetic for subjects with a positive family history of diabetes was increased three times in both sexes, but the association between positive family history of diabetes and presence of IGT was not significant. National Action Plan for the prevention and control of Diabetes in Pakistan in collaboration with Ministry of Health is formulated Hypertension is a very common public health problem in Pakistan. Circulatory Diseases are No.1 cause of death worldwide. Hypertension is a major contributory factor to this mortality. According to a data published in 1997 revealed that 18% of the Pakistani Population has raised blood pressure levels. There are an estimated 12 Million hypertensives in Pakistan. 1% of the population of Pakistan suffer from schizophrenia. Depressive disorders affect the health of seven out of ten persons and attribute to 60% of all suicides. Epilepsy accounts for 1% of the population in the cities and 2% of the population living in the villages, most of them untreated. Pakistan also has its due share of Alzheimer?s disease, substance abuse and mental retardation. With these sort of figures mental health in Pakistan needs urgent attention. Pakistan is spending 2 percent of its GDP on health care services. The World Health Organisation (WHO) in its recent report on macroeconomics has recommended that US$ 34 per-capita is the required package for essential health care services. Pakistan is currently spending Rs 254 (approximately US$ 4.2) per-capita which is quite low when compared to the per-capita WHO recommendation; per capita expenditure is almost 12 percent of WHO recommended level in Pakistan. Government of Pakistan with international partner organisation is running many programmes, which have been mentioned above, to improve the healthcare infrastructure. KEY METHODS OF DOING BUSINESS The best way to operate in the Pakistan market is through a local agent who could represent UK Company in the country. However, companies wishing to establish an office should consider doing so in partnership with a suitable local company. The most common arrangement is the exclusive agency agreement, under which the supplier agrees to neither appoint another dealer/distributor, nor to negotiate sales through any other party. In return, the agent is barred from handling similar items produced by other companies. Under this arrangement, the agent receives commissions on all sales of the product regardless of the channels through which the order is placed. Other background information on doing business in Pakistan can be found on UKTI?s website. Simply go to the Pakistan country page where you will find information on: Page 7 of 9 [Healthcare] ? [Pakistan] ? Economic background and geography ? Customs & regulations ? Selling & communications ? Contacts & setting up ? Visiting and social hints and tips MORE DETAILED SECTOR REPORTS Research is critical when considering new markets. UKTI provides market research services which can help UK companies doing business overseas including: ? Overseas Market Introduction Service (OMIS). Bespoke research into potential markets, contacts and support during your visits overseas. ? Export Marketing Research Scheme. Advice on market research and help to contact subsidised market research administered by the British Chambers of Commerce on behalf of UKTI. Contact your local International Trade Advisor if you are interested in accessing these services, or for general advice in developing your export strategy. When considering doing business in Pakistan, it is essential to obtain legal, financial and taxation advice. For further details, please contact: Saima Anjarwala UK Trade & Investment British Deputy High Commission Shahrah-e-Iran, Clifton, Karachi, Pakistan Telephone: 0092 21 35827000 Fax: 0092 21 35827005 Email: Website: EVENTS 6-10 March 2010 Health Asia and Pharma Asia at Karachi Expo Centre and UK Trade & Investment?s Tradeshow Access Programme (TAP) can help eligible UK businesses take part in overseas exhibitions. Attendance at TAP events offers significant benefits: ? possibilities for business opportunities both at the show and in the future ? a chance to assess new markets and develop useful contacts ? grants are available if you meet the criteria ? UKTI staff overseas will be available to assist delegates Find out if you are eligible to apply to attend this event, and more about the support UKTI can offer, on the UKTI Market Entry web page. Details of TAP events can be found in the Events portlet on the [country] page. Other Market Visit Support may be available via your local International Trade Advisor. Page 8 of 9 [Healthcare] ? [Pakistan] CONTACT LISTS ? Government of Pakistan ? Ministry of Health ? Pakistan Pharmaceutical Manufacturer Association ? Drugs Control Organisation ? Pakistan Anti TB Association ? Pakistan Medical And Dental Council ? Pakistan Dental Association ? National Council for Homeopathy Ministry of Health Government of Pakistan UKTI?s International Trade Advisers can provide you with essential and impartial advice on all aspects of international trade. Every UK region also has dedicated sector specialists who can provide advice tailored to your industry. You can trace your nearest advisor by entering your postcode into the Local Office Database on the homepage of our website. For new and inexperienced exporters, our Passport to Export process will take you through the mechanics of exporting. An International Trade Adviser will provide professional advice on a range of services, including financial subsidies, export documentation, contacts in overseas markets, overseas visits, translating marketing material, e-commerce, subsidised export training and market research. Page 9 of 9
Posted: 04 October 2010