Huge Potential for Pharmaceutical Exports
The US administration has declared certain medicines from Bangladesh and 20 other countries fully exempt from tariffs. The United States is one of the world’s largest importers of pharmaceuticals, importing more than $210 billion worth of medicines annually. Bangladesh is among a small number of countries from which the US imports a significant volume of medicines.
Although Bangladesh’s pharmaceutical export volume is not comparable to that of the readymade garment (RMG) industry, the sector has enormous trade potential. Around 85 percent of Bangladesh’s export earnings come from the RMG sector, while nearly 90 percent of its garment export market depends on the European Union and US markets. In contrast, Bangladesh’s pharmaceutical exports are spread across more than 100 countries.
Bangladesh’s pharmaceutical exports have doubled over the past six to seven years, but they have yet to reach even half a billion dollars. In the 2024-25 fiscal year, Bangladesh exported pharmaceuticals worth $213 million. Although the amount is relatively small, exporting medicines to 166 countries is highly significant and indicates strong potential.
The United States imports around 10-11 percent of its garments from Bangladesh, amounting to $8.2 billion in 2025. Similarly, if Bangladesh could secure 10 percent of the US pharmaceutical import market, its pharmaceutical exports to the country could reach $21 billion. If Bangladesh can make effective use of its experience and potential in exporting medicines to 166 countries, the pharmaceutical industry could become the country’s leading export-oriented commercial sector.
Pharmaceuticals are a highly diversified industry in the global market. The United States and the European Union are both major importers and exporters of medicines. Among the leading exporters to the US market are Ireland, Switzerland, Germany, China, India and Vietnam. Notably, China, India and Vietnam are also major competitors of Bangladesh in garment exports to the US.
For decades, Bangladesh has competed successfully with India to maintain a strong position in the US and European garment markets. However, while Bangladesh has managed to expand pharmaceutical exports to many countries, the export value remains low. India exports around $15 billion worth of pharmaceuticals to the US market, while Bangladesh has yet to reach even $1 billion in total pharmaceutical exports.
However, every long journey begins with a single step. Duty-free access to the US market, combined with the ability to supply even a small share of pharmaceutical demand across 166 countries, could create a major opportunity for Bangladesh’s pharmaceutical industry to become a leading export sector.
The fact that Bangladesh’s pharmaceutical exports have already reached markets across the world is encouraging. To realise this potential, steps must be taken to improve the quality of medicines and ensure a reliable supply of raw materials. Major pharmaceutical exporters such as Beximco, Square, Incepta and Renata need to increase investment in improving product quality, researching generic medicines, and expanding the production and supply of pharmaceutical raw materials.
Bangladesh’s dependence on a few products and only two or three major markets for its export trade is highly risky. The current situation in the Middle East has once again demonstrated this vulnerability. Economists and market analysts have long stressed the need to diversify the country’s exports. An economy that relies heavily on garment exports to only two major markets remains exposed to significant risks. The broad global market for pharmaceuticals therefore offers an opportunity for Bangladesh to diversify its export base.
Beyond traditional export products, information technology products and services are also becoming increasingly important to the economy. Bangladesh’s new leadership is paying considerable attention to this sector. Policymakers and experts accompanying the prime minister during his visit to the United States for the UN General Assembly participated in the “Bangladesh-Silicon Valley Technology Dialogue” at Stanford University in California, sending a new signal about the country’s ambitions in technology.
Through technological exchanges and investment in talent between Bangladeshi investors and Silicon Valley investors and technology experts, Bangladesh could open new opportunities in the IT sector. In particular, the country should explore opportunities for cooperation with Silicon Valley to develop intellectual property in artificial intelligence.
Bangladesh exports a large number of low-skilled workers to major global markets. If even half of them could be trained as skilled, highly qualified workers and their expertise could be utilised in industries at home and abroad, the country could have moved much closer to its trillion-dollar economic goal much earlier.
Traditional export products such as jute, leather and tea, along with garments, pharmaceuticals and shipbuilding, have strengthened Bangladesh’s export trade and economy. The country now needs new action plans to make better use of the potential of the pharmaceutical and IT sectors. Alongside ensuring stability and security at home, Bangladesh should take planned measures to prevent the outflow of talent and capital and channel these resources into national development.
