Pharmaceutical sector leaders at a seminar in Dhaka yesterday pointed to a number of problems the industry now faces.

Besides demanding rules relaxation to facilitate overseas investment, they stressed tapping Bangladesh's potential of being a supplier of generic drug.

Held at Dhaka Sheraton Hotel, the seminar on Pharma Vision 2015 was also addressed by a number of ministers, including the finance minister.

AbdulMuktadir, general secretary of Bangladesh Association of Pharmaceutical Industries (Bapi), said although Bangladesh sells pharmaceutical products to 80 countries, the country’s export earning from the sector has been dismal due to the current foreign exchange regulation.

"The regulation does not allow us to invest outside the country. Besides, we need to take permission for overseas expenses from Bangladesh Bank through authorised dealer, which is too time-consuming," he pointed out.

Local production accounts for 97 percent of the national consumption, while the rest 3 percent is imported.

About 194 local companies, currently in operation, also dominate the market share, as those occupy 90 percent of the USS 800 million market size, while multinational companies contribute 7 percent and the rest 3 percent comes from import. The sector grows 16.8 percent annually.

Because of high quality, a number of local companies have been able to register their products in many countries, but total export revenue was only $47 million in 2009 in the global export market of over $800 billion, said Muktadir.

He stressed tapping Bangladesh's potential of being a supplier of generic drug. In this connection, he pointed to the fact that India is becoming the only source of generic formulation in the global generic market of about $100 billion. "All countries are looking for an alternative source, so Bangladesh has immense opportunity in the sector," he said.

On his suggestion for raising capacity of the National Drug Control Laboratory, Health Minister AFM Ruhal Haque said the government expects such upgrade to make it a WHO-standard by mid-2011.

The demand to make the Active Pharmaceutical Ingredient park fully operational within 2012 was also raised at the seminar.

Nazmul Hassan MR Bapi's adviser, suggested the government remove barriers to help the highly potential sector expand further and tap export opportunities in the global market, rather than making any incentives.

Assuring the sector of allowing overseas investment, Finance Minister AMA Muhith also asked the authorities concerned to be strict while issuing licences to drug makers to avert any trend of making spurious medicines.

Dr Modasser Ali, health adviser to the prime minister, said the government will take steps to solve the problems the local pharmaceuticals sector.

Industries Minister Dilip Barua expressed his hope that API Park in Munshiganj, to be inaugurated by early next year, would bring new opportunities for the sector.

Mashiur Rahman, adviser to the prime minister on economic affairs, the barriers standing in the way of local pharmaceuticals industry need to be looked at.

The health minister said the sector should be given assistance in registering products with foreign markets, promoting their products and sending sample to tap opportunities.