What's Happening?
Bangladesh's pharmaceutical industry is set to benefit from expanded duty-free access to a range of raw materials under the proposed budget for the fiscal year 2026-27. The budget, presented by Finance Minister Amir Khosru Mahmud Chowdhury, includes duty concessions
for 77 raw materials used in medicine production. This move aims to stabilize the supply of active pharmaceutical ingredients (APIs), enhance production efficiency, and reduce reliance on imported finished products. The budget also proposes zero import duty and VAT on nine new raw materials for cancer drug manufacturing and 17 other pharmaceutical raw materials. Industry leaders, such as Zahangir Alam of Square Pharmaceuticals, have welcomed these measures, highlighting their potential to improve cost management and support export growth. However, challenges remain, including regulatory requirements and market-entry costs for exporters.
Why It's Important?
The expansion of duty-free access to raw materials is crucial for Bangladesh's pharmaceutical sector, which has seen significant growth in recent years. By reducing procurement uncertainties and production costs, the industry can enhance its competitiveness both locally and internationally. This is particularly important as the demand for a wider range of medicines increases, driven by the expansion of Bangladesh's healthcare sector. The duty concessions are expected to improve the availability of medicines for chronic illnesses, such as cancer and kidney diseases, benefiting patients. Additionally, the measures could help Bangladeshi manufacturers compete more effectively in global markets, potentially boosting the country's pharmaceutical exports. However, the industry still faces challenges, including the need for long-term investment and additional policy support to expand its global footprint.
