Bangladesh’s Pharmaceutical Industry Held Back by Policy Gaps

Bangladesh’s pharmaceutical industry is one of the country’s most advanced technology-based sectors. It meets around 98 percent of domestic demand and exports medicines to about 160 countries, earning valuable foreign currency. Despite global economic challenges, the sector earned around Tk 30 billion from exports in the last fiscal year. Bangladeshi medicines are now available not only in Asia but also in Europe, North America and Africa. Industry leaders, however, say the sector’s full potential is being held back by the lack of long-term and supportive policies.

Experts say Bangladesh has made significant progress in producing medicines for complex diseases, including cancer, kidney, liver and lung conditions. Many life-saving medicines are now produced locally at affordable prices, reducing dependence on foreign treatment and increasing public confidence in the healthcare system. The pharmaceutical industry has become one of Bangladesh’s leading export sectors outside garments. Industry representatives believe that if it received policy support similar to the garment sector, it could have grown much faster.

Need for Policy Support

Industry stakeholders say the sector has not received export incentives or other policy support from the government, despite creating employment for a large number of people. They say the size of Bangladesh’s pharmaceutical market has remained around $3 billion for the past six years. Industry leaders also point to the lack of regular price adjustments for medicines over the past decade.

There are also concerns over proposals to make doctors prescribe medicines only by generic names. Industry representatives argue that such a move could shift decisions on specific brands from doctors to retailers.
Experts Call for Infrastructure and Research Support Distinguished Fellow of the Centre for Policy Dialogue (CPD), Professor Dr. Mustafizur Rahman, said greater support is needed for gas supply, industrial services, central effluent treatment plants (CETP), and research and development.

He said, “If we can provide these facilities, companies that have taken plots in the API Industrial Park will be able to start production. If we can produce even part of our own raw materials through the API Industrial Park, our competitiveness will increase.” He also advised preparing for intellectual property and patent-related challenges after Bangladesh graduates from the Least Developed Country (LDC) category.

Professor Dr. Syed Abdul Hamid of Dhaka University’s Health Economics Unit said industries face difficulties importing raw materials due to port-related problems. He noted that competing countries, especially India, offer far more support to their pharmaceutical industries.

Export Performance and Market Opportunities

According to Bangladesh Bank data, pharmaceutical exports reached $240 million in the 2025-26 fiscal year, close to a quarter of a billion dollars. Asia remains the largest market for Bangladeshi medicines. Exports to Sri Lanka totaled $30.6 million, while exports to Myanmar reached about $30.7 million. Together, the two countries accounted for around one-fourth of Bangladesh’s pharmaceutical export earnings. Bangladeshi medicines are also exported to Europe, North America and Africa. Industry leaders believe exports could increase further if domestic production challenges are reduced.

Growth in Vaccines and Specialized Medicines

Bangladesh now produces medicines for cancer, kidney, liver and other complex diseases. The country has also expanded vaccine production, including vaccines for rabies, hepatitis B, typhoid, tetanus, measles-rubella, influenza and meningitis. Experts say this progress has been made possible through the combined efforts of pharmacists, chemists, biochemists, biotechnologists, doctors and engineers.

The availability of affordable medicines has also improved. For example, Pegfilgrastim, an essential supportive medicine for cancer treatment, once cost more than Tk 40,000 but is now available for around Tk 4,000. Many chemotherapy medicines are also being produced locally.

Challenges Remain

Industry experts say counterfeit and low-quality medicines remain a major concern. Such products can harm public health and damage Bangladesh’s reputation in international markets. The sector also faces challenges related to raw material dependence, gas and electricity shortages, rising production costs and lengthy registration processes in export markets.

KSM Mostafizur Rahman, Managing Director of One Pharma Limited, said, “There are two major challenges in pharmaceutical exports. First, meeting the requirements of importing countries. Second, obtaining registration approval, which can take from one year to as long as three years.” Bangladesh Pharmaceutical Industries Association Secretary General Dr. Md. Zakir Hossain said, “We are not getting reliable gas, electricity or security support, despite making major investments and paying bank interest every month.” He added that the sector continues to struggle because of insufficient policy support, despite its strong potential.

US Tariff Changes and Future Opportunities

Industry leaders say recent changes in US tariff policy may create future opportunities for Bangladesh, although immediate benefits are expected to be limited. Under Section 232 of the US Trade Expansion Act, certain licensed medicines and pharmaceutical ingredients from eligible countries, including Bangladesh, have been exempted from tariffs. The products include orphan drugs, nuclear medicines, plasma-based therapies, fertility treatments, cell therapies, gene therapies and antibody-drug conjugates.

However, industry leaders say Bangladesh currently lacks the capacity to manufacture many of these highly specialized products. Beximco Pharmaceuticals Executive Director Shaukat Haider said, “Bangladesh is unlikely to gain significant benefits because we do not produce these highly complex or advanced medicines.”
He said producing such medicines would require major investments in technology, research and development, manufacturing facilities and regulatory compliance.

Haider also noted that entering the US pharmaceutical market remains difficult due to strong competition from producers in countries such as India, South Korea and Japan. Industry leaders say Bangladesh’s pharmaceutical sector has strong long-term potential, but realizing that potential will require better policy support, investment in research, improved infrastructure and greater self-reliance in raw materials.