Pakistan Urged to Localize Medical Device Manufacturing as Industry Demands Tax Relief

Federal Health Minister Syed Mustafa Kamal

urged stakeholders to break Pakistan’s

dependence on imported medical technologies

Health Reporter

Karachi: In a bid to reduce Pakistan’s reliance on imported medical devices, the Federal Health Ministry and the Drug Regulatory Authority of Pakistan (DRAP) on Friday called on pharmaceutical firms and importers to invest in local manufacturing—starting with basic devices and progressing to advanced technologies. Industry leaders, however, demanded sweeping tax relief and business-friendly policies to kickstart domestic production. The call came during the ‘Breaking Barriers’ session of the Pakistan Med Movement at Salim Habib University.

Health Minister: Imported Devices Are Not Sustainable

Federal Health Minister Syed Mustafa Kamal stressed the urgent need for self-reliance in healthcare. “We can’t continue to depend on imported devices forever. The solution lies in encouraging local production, and the government will extend complete regulatory support,” he said. Kamal warned that unless Pakistan tackles its unchecked population growth, even enhanced medical infrastructure would be insufficient. “Our hospitals have collapsed. Primary healthcare is in shambles. We are producing more people, then making them sick, and finally talking about building hospitals,” he remarked.

Unsafe Water Linked to Disease Explosion

Kamal noted that 68 percent of diseases in Pakistan stem from unsafe drinking water. “Sewage water is mixing with drinking water and someone is consuming it. Just like electricity systems, we must also install water treatment plants,” he said. He added that Pakistan now ranks among the highest in the world for Hepatitis C and diabetes due to the lack of a preventive healthcare approach. “We are investing billions in curative systems but ignoring prevention. Prevention is the only way out,” he stressed.

DRAP: Start Small, Build Gradually

DRAP CEO Dr. Obaidullah Malik acknowledged that the medical device sector in Pakistan is still nascent but holds significant potential. “You can’t manufacture MRI machines overnight. Start small, grow gradually, and work together,” he advised. He highlighted the disconnect between academia, regulators, and industry, urging all parties to collaborate. “Invisible barriers exist between stakeholders. Everyone thinks they are right. We must begin to understand each other’s challenges,” he said.

Industry Seeks Tax Relief and Incentives

Former HDAP Chairman and CEO of Hospicare, Masood Ahmed, appreciated DRAP’s efforts in fast-tracking device registration but said the current 18 percent sales tax on medical devices is a major deterrent. “This must be reduced to one percent—just like pharmaceuticals—if we want to promote local manufacturing,” he stated. He further called on the government to address structural and fiscal barriers that continue to hinder growth. “We are ready to invest, but the government must support us with tax relief, reduced costs, and a business-friendly environment.”

HDAP Pushes for Policy Reforms

Syed Omer Ahmed, HDAP Chairman and moderator of the session titled “Quality Device Manufacturing in Pakistan: Challenges and Opportunities,” emphasized that 98 percent of medical devices are currently imported. “In a country like Pakistan, where availability is a major concern, essential medical devices must be produced locally to ensure consistent supply,” he said. He added that HDAP members are willing to shift from import to production, but need easier registration processes and inclusion in the 8th Schedule to benefit from a reduced sales tax rate of one percent.

Local Manufacturing Seen as Key to Healthcare Resilience

Experts at the forum agreed that promoting local production of medical devices—supported by regulatory reforms and public-private collaboration—can transform Pakistan’s healthcare system. The event was jointly organized by DRAP, the Healthcare Devices Association of Pakistan (HDAP), Saman & Shifa Foundation, and the Special Investment Facilitation Council (SIFC).