API Advancement: Industry Leaders Call for Taskforce to Boost Domestic Production

To accelerate the development of the Active Pharmaceutical Ingredient (API) industry and implement the recommendations of the Health Sector Reform Commission, industry leaders have called for the formation of a dedicated taskforce. According to stakeholders, if Bangladesh receives the same level of policy and financial support as neighboring countries, it could reduce import dependency and create significant employment opportunities. They argue that with tax benefits and proper policy support, the country could export $2 billion worth of locally produced APIs within the next five years—while also conserving foreign currency by reducing imports.

These demands and projections were voiced during a roundtable discussion titled “Advancing Bangladesh's API Sector: The Need for a Taskforce to Implement the Support of the Caretaker Government and Health Sector Reform Commission,” held on Saturday, July 19, in Karwan Bazar, Dhaka.

Organized by the Bangladesh API and Intermediaries Manufacturers Association (BAIMA), the discussion featured a keynote presentation by BAIMA President S M Saifur Rahman. Presenting a paper on the challenges and potential of the raw material industry in pharmaceuticals, he stated that currently, 10 to 15 local companies produce around 70 types of APIs, whereas the national demand requires nearly 1,000. “With proper policy support and financial incentives, most of these APIs can be produced domestically. We could even reach $2 billion in exports within five years,” he said.

He further emphasized the need for a taskforce to implement the recommendations of the Health Sector Reform Commission, citing the example of similar initiatives in the jute industry. “We have received assurances from the Ministry of Health regarding this,” he added.

Referring to neighboring countries, Saifur Rahman noted, “Every year, India provides approximately ₹21,940 crore in assistance to API entrepreneurs, while China has developed the sector with its own funding. Bangladesh also needs similar policy support. The API industry is crucial to national security.”

He also highlighted that in 2018, Bangladesh exported $18 million worth of APIs, but exports declined due to the COVID-19 pandemic and various complexities. “If India can export $30 billion, we should easily be able to export $2 billion. But for that, we need consistent support for the next five years. VAT and tax refunds must be ensured for exporters through the NBR. We also urge for a ‘low-cost refinance’ facility similar to the garments sector.”

BAIMA executive member and Managing Director of Gonoshasthaya Pharma, A B M Jamal Uddin, said, “Due to lack of government support, technology adoption, and skilled workforce, a strong API industry hasn’t yet developed in Bangladesh. Every year we import $1.5 to $2 billion worth of API products, half of which could be produced locally if the government is sincere.” He also urged for increased import duties on API products to support local manufacturing.

BAIMA member and Managing Director of Sodical Chemicals, Nizam Uddin Ahmed, said, “If we can scale up this sector, a massive number of jobs will be created. Many graduates from universities will have the opportunity to join this field.”

Rashed Rabbi, President of the Bangladesh Health Reporters Forum, emphasized, “This sector has enormous potential. With policy support, import dependence can be reduced. Pharmaceutical companies have already invested privately in this sector. If 50 percent of the national demand for raw materials is met domestically, the pharmaceutical industry’s import dependency will significantly decline.”