Pharma Industry puts on hold further expansion and development work

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Pharma Industry puts on hold further
expansion and development work

KARACHI: In view of the prevailing uncertainty and unfavorable business environment the pharmaceutical trade and industry has also put on hold any further expansion and development. Plans to set up new drug manufacturing plants, modernization of the existing units have been stopped due to high interest rate and devaluation of the Pakistani currency. Enquiries revealed that the believe that in view of the increase in interest rate from 6.5% to 13.5% during the last year and almost 35% devaluation of the Pakistani currency has made it extremely difficult for them to make any further investment for the time being. Hence all the further expansion plans are being withheld for the time being.

This is said to be the direct result of the agreement made by the Government of Pakistan with the International Monetary Fund (IMF) and handing over the finance and economic management, planning to the IMF staff that deserve all the credit for the current state of affairs. The business community on the whole is not at all happy and they did air their grievances in their meeting with the Army Chief recently. According to another report there has been severe cut in purchase of drugs and medicines by the public sector healthcare facilities as well, drastically affecting the sales and it is feared that if the situation does not improve in the next two three months, pharmaceutical industry like other business concerns will also start laying off the workers, thus increasing the unemployment. With decreased sales and slump in overall business activity, the revenue collection by the Government is also likely to be affected seriously and it may find it extremely difficult to meet its revenue targets which will bring further pressure. At present the situation looks very bleak. It is high time that the economic managers of the Government give it a serious thought and initiate measures for the revival of the economy before it is too late.