POLICY FOR TECHNOLOGY UP-GRADATION

IN SURGICAL INSTRUMENTS AND

PHARMACEUTICAL SECTORS

TRADE RELATED TECHNICAL ASSISTANCE PROGRAMME

THE PROGRAMME IS FUNDED BY THE EUROPEAN UNION

IS THE FOCAL POINT FOR THE THE PROGRAMME IS UNIDO IN ASSOCIATION ITC

Photos: Thinkstock.com

Address: Trade Related Technical Assistance (TRTA II) Programme, Programme Management Office (PMO), 7th Floor, Serena Business Complex, Khayaban-e-Suharwardy, Sector G-5/1, Islamabad, Pakistan

Telephone: +92 51 8354 810

Fax: +92 51 2600 124

E-mail: info@trtapakistan.org

Internet: http://trtapakistan.org

For enquiries and further details about Component 1 contact: Mohammad Owais Khan, Programme Officer (Trade Policy),

International Trade Centre (ITC), EU funded TRTA II programme, Islamabad, phone: +92-51-8354822, Email:

mokhan@intracen.org

mailto:info@trtapakistan.orghttp://trtapakistan.org/mailto:mokhan@intracen.orgmailto:mokhan@intracen.org

Acknowledgments

This study was carried out as part of the Trade Policy Capacity Building Component,

implemented by the International Trade Centre (ITC), of the European Union Trade Related

Technical Assistance (TRTA II) Programme, which aims at strengthening the capacity of Pakistan to

participate in international trade.

Athar Osama, Founding Partner, Pakistan Innovation Foundation, wrote this study. He is

entirely responsible for the views expressed in this book. Alan Porter, Professor Emeritus of the

School of Public Policy, and of Industrial & Systems Engineering, was the peer reviewer of this study.

The study was conducted under the direct guidance of Mohammad Owais Khan, Programme Officer,

Trade Policy, ITC, TRTA II, Islamabad, together with Andrew Huelin, Consultant, Trade Facilitation

and Policy for Business, ITC. Jean-Sbastien Roure, Senior Officer, Trade Facilitation and Policy for

Business, ITC, was the overall supervisor.

Victoria Simon, consultant, Trade Facilitation and Policy for Business, supervised and

managed the production of the final version. Isabelle Jouve, Associate Programme Adviser, Trade

Facilitation and Policy for Business, ITC, designed the cover page and desktop publishing. Beyond,

consultancy firm, carried out the formal editing.

Finally, we thank PITAD for their overall support as well as active involvement in the public

private consultative process, which informed the findings of this study.

Contents

1. Executive Summary ............................................................................................................................... 1

2. Objectives of the Study and Research Brief .......................................................................................... 9

3. Note on Research Methodology and Stakeholder Consultations ....................................................... 10

4. The Surgical Instruments Industry ....................................................................................................... 12

4.1 Global Surgical Instruments Industry ............................................................................................ 12

4.2 Pakistans Surgical Instruments Industry ....................................................................................... 14

4.2.1. Historical Context ............................................................................................................ 14

4.2.2. Industry Size and Structure ............................................................................................. 15

4.2.3. Exports ............................................................................................................................. 17

4.2.4. Economic Impact ............................................................................................................. 19

4.2.5. Product Value Chain ........................................................................................................ 20

4.2.6. Quality and Standards ..................................................................................................... 21

4.2.7. Production and Technology ............................................................................................. 22

Surgical Instruments Industry in Comparable Countries .............................................................. 26 4.3.

4.3.1. Differences in Production Technology ............................................................................ 26

4.3.2. Comparison with Reference Countries ........................................................................... 27

New Techno-Market Pathways..................................................................................................... 29 4.4.

4.4.1. Technology Adoption and Upgradation .......................................................................... 29

4.4.2. Alternative Futures and Scenarios .................................................................................. 30

Key Issues and Challenges ............................................................................................................ 35 4.5.

4.5.1. Cost of Doing Business .................................................................................................... 35

4.5.2. Labour Shortages ............................................................................................................. 36

4.5.3. Quality and Perception .................................................................................................... 37

4.5.4. Public Policy ..................................................................................................................... 38

4.5.5. Other Issues ..................................................................................................................... 39

Specific Recommendations ........................................................................................................... 39 4.6.

4.6.1. Recommendations for the Industry (The Association and Companies) .......................... 39

4.6.2. Recommendations for Government ................................................................................ 44

4.6.3. Recommendations for International Organizations ........................................................ 47

Policy Recommendations Summary Matrix ............................................................................. 49 4.7.

5. The Pharmaceutical Industry ............................................................................................................... 56

5.1 The Global Pharmaceutical Industry ......................................................................................... 56

Leading Players (Countries) in Pharmaceuticals ....................................................................... 56

Pakistans Pharmaceutical Industry .............................................................................................. 56 5.2.

5.2.1. Historical Context ............................................................................................................ 57

5.2.2. Industry Size and Structure ............................................................................................. 57

5.2.3. Exports ............................................................................................................................. 59

5.2.4. Economic Impact ............................................................................................................. 62

5.2.5. Products and Technology ................................................................................................ 62

5.2.6. Quality and Certifications ................................................................................................ 73

5.2.7. Scientific Research and Development ............................................................................. 75

The Global Picture ..................................................................................................................... 75

Science-base for Pharmaceutical R&D in Pakistan .................................................................... 78

Pharmaceutical Industries in Comparable Countries ................................................................... 78 5.3.

5.3.1. Production Machinery ..................................................................................................... 81

5.3.2. Testing and Certification ................................................................................................. 81

New Techno-Market Pathways..................................................................................................... 82 5.4.

5.4.1. Technology Adoption and Upgradation .......................................................................... 82

5.4.2. Alternate Futures and Scenarios ..................................................................................... 84

Key Issues and Challenges ............................................................................................................ 89 5.5.

5.5.1. Pricing Policy .................................................................................................................... 89

5.5.2. Regulatory Quality and Efficiency ................................................................................... 89

5.5.3. Export Development.......................................