India seeks detailed report on pharma exports to Pakistan ahead of a likely ban on all bilateral trade

The Pharmaceuticals Export Promotion Council of India (Pharmexcil), which is under the commerce ministry, has been asked to provide the details in the backdrop of India exploring the possibility of a complete trading halt with Pakistan following the terror attacks in Pahalgam last week. India has already shut down the Attari check post, a key land route through which most trade takes place between the two nations.

“Pharmexcil has only received a communication from the Department of Pharmaceuticals regarding the quantum of pharmaceutical exports to Pakistan for the past two financial years. Pharmexcil has provided the data to the DoP. It is assumed that the government may take some decision,” the person said, requesting anonymity.

“The government of India is taking multi-pronged actions against Pakistan. Seeking details of pharmaceutical exports to Pakistan may be one of the things to know how much India is exporting and how much India can stop. But Pakistan has already announced that they have stopped all trade with India, so that may be the reason,” said a former government official who did not wish to be identified.

While India’s direct trade with Pakistan is negligible – $1.2 billion in FY24 – some essential items such as drugs and pharmaceuticals are traded through different routes.

Pakistan ranked 38th on India’s list of pharma export destinations in FY24. India exported drugs worth about $208 million to Pakistan till March this year. India’s pharmaceuticals exports to Pakistan fell 7.7% to $176.54 million in FY24, according to data on the Pharmexcil website, accounting for 0.6% of the country’s total pharma exports.

High dependency  

“India exports APIs (active pharmaceutical ingredients), drug formulations, biologicals, bulk drugs and intermediates, vaccines, surgical, Ayush and herbals. We have a significant number of vaccines going to Pakistan because of the huge demand and vaccination requirements, which India largely supplies through UN agencies,” an official said, adding that there are other essential commodities that are far more important than pharmaceutical items.

According to the official, Pharmexcil has not got any official notification on the embargo for pharma exports to Pakistan, but it should come any time soon. Pharmexcil can restrict exports to Pakistan only after getting a direction from the commerce ministry.

“And even if there is a blanket ban on exports to Pakistan, the customs department is the final gateway to block consignments because they know the port of destination,” the official said.

Pakistan’s pharmaceutical sector is highly dependent on inputs from India. The Drug Regulatory Authority of Pakistan has put contingency plans in place following the suspension of trade ties with India and is seeking alternative sources from China, Russia, and European countries, Geo News said in a report on its website on 26 April.

Pakistan imports 30%-40% of its pharmaceutical raw material from India. It also imports finished products such as anti-cancer therapies, biological products, vaccines, and sera, especially anti-rabies vaccines and anti-snake venom, from India, the report cited a senior official of Pakistan’s ministry of national health services as saying.

“Our pharmaceutical exports to Pakistan have always been very small,” Uday Bhaskar, former director-general of Pharmexcil, said earlier. “So, there is no significant pharma trade between India and Pakistan and negligible impact.”

Terrorists killed 26 people and injured more than 20 individuals at a popular tourist destination near Pahalgam in Jammu and Kashmir on 22 April. The incident was condemned worldwide with the US, Russia and Israel extending support to India in combatting terrorism.

Queries sent to the department of pharmaceuticals and the Pharmexcil spokesperson remained unanswered.