Pakistan, China sign 10 pharma MoUs include Rs10bn investment

May 13, 2026 (MLN): Pakistan’s pharmaceutical sector moved toward local production of critical drug ingredients and vaccines after Pakistani and Chinese companies signed 10 Memorandums of Understanding (MoUs) in Islamabad covering Active Pharmaceutical Ingredient (API) manufacturing, technology transfer, vaccine collaboration, and pharmaceutical investment.

The agreements include a Rs10bn investment partnership between Unichem Pharmaceuticals Pakistan and China’s Xinxu Group for local manufacturing of pharmaceutical raw materials, including Omeprazole API, around 95% of which has historically been imported into Pakistan.

The project is expected to reduce import dependence, conserve foreign exchange reserves, improve medicine supply security, and strengthen domestic pharmaceutical manufacturing capacity.

The MoUs also include agreements related to poultry vaccine manufacturing and broader pharmaceutical technology transfer, marking a major expansion of Pakistan-China cooperation in the healthcare and pharmaceutical sectors.

Federal Minister for National Health Services Syed Mustafa Kamal, addressing the ceremony, said Pakistan exports medicines to 51 countries but remains heavily dependent on imported pharmaceutical raw materials, according to the press release.  

He said local API production would help improve medicine affordability and long-term supply resilience.

He said two flagship agreements signed during the conference carried strategic importance, particularly in pharmaceutical raw material production, technology transfer, and poultry vaccine manufacturing.

The minister noted that Pakistan currently imports poultry vaccines worth approximately $4.5m annually, while dependence on imported vaccines remains a strategic vulnerability for the country’s healthcare sector.

He added that Pakistan currently provides free vaccines for 13 diseases to children, but global immunization support arrangements are expected to change by 2030, after which Pakistan may need to finance vaccine procurement independently at an estimated annual cost of $1.2bn.

According to the minister, the government is therefore working to establish local vaccine manufacturing capacity before 2030 to reduce reliance on external supply chains and strengthen healthcare preparedness.

Referring to the COVID-19 pandemic, Syed Mustafa Kamal said vaccines played a critical role in reducing mortality and future vaccine development, including potential cancer vaccines, could significantly transform healthcare outcomes.

He further said that Pakistan has approved a comprehensive National Vaccine Policy for the first time, while the National Institute of Health (NIH) is being further activated to support vaccine development and manufacturing.

The minister said Pakistan is also pursuing WHO Level 3 certification within the coming months, which could expand pharmaceutical export access from the current 51 countries to more than 150 international markets.

Highlighting broader healthcare pressures, he said Pakistan’s population is increasing by around 6.2m people annually, placing additional strain on health, education, infrastructure, and employment systems.

He said Pakistan is currently the world’s fifth most populous country and rapid population growth has emerged as a major national challenge.

The minister also highlighted maternal healthcare concerns, stating that around 11,000 mothers die annually due to pregnancy and childbirth-related complications, calling for preventive healthcare reforms and stronger healthcare systems.

Parliamentary Secretary for Commerce Dr. Zulfiqar Ali Bhatti said the initiative reflects efforts to strengthen industrial growth through strategic partnerships and foreign investment.

He said a review of Pakistan’s pharmaceutical trade structure showed that dependence on imported medicines and pharmaceutical raw materials was increasing pressure on the country’s foreign exchange reserves and import bill.

According to Dr. Bhatti, the objective of the agreements is to promote local pharmaceutical manufacturing, facilitate technology transfer, attract investment, and strengthen Pakistan’s pharmaceutical ecosystem to support both healthcare security and economic growth.

The ceremony was held at the Mövenpick Hotel Islamabad in collaboration with the Ministry of National Health Services, Regulations and Coordination, the Drug Regulatory Authority of Pakistan (DRAP), One Station China Desk (OSCD), and the office of the Parliamentary Secretary for Commerce.

Among the key agreements, Lucky Core Group also signed an MoU with Chinese pharmaceutical partners to expand industrial cooperation between the two countries.

The agreements were formally signed by Hamid, CEO of Unichem Pharmaceuticals Pakistan; Hou, CEO of Xinxu Group; Gong Yun (Alia), Head of Healthcare Department from the Chinese side; and Saboor representing Lucky Core Group, while Federal Minister Syed Mustafa Kamal and Parliamentary Secretary Dr. Zulfiqar Ali Bhatti witnessed the signing ceremony.

Senior representatives from One Station China Desk, Chinese pharmaceutical companies, and Pakistani pharmaceutical industry stakeholders also participated in the event and discussed investment opportunities, local manufacturing, and technology transfer prospects in Pakistan’s pharmaceutical sector.

Officials at the event said the agreements are intended to increase local pharmaceutical manufacturing, reduce dependence on imported APIs, attract foreign direct investment, and strengthen Pakistan’s healthcare supply chain resilience.

Pakistan’s pharmaceutical industry has historically relied heavily on imported raw materials, particularly from China, leaving the sector exposed to currency depreciation, supply disruptions, and rising import costs.

The latest agreements represent one of the largest recent China-backed pharmaceutical investment and technology transfer initiatives aimed at improving Pakistan’s healthcare self-reliance and export potential.

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