Govt finalises draft National Policy for local vaccine manufacturing
Under the proposed policy, vaccine manufacturers will be provided a special financial incentive package for a period of 10 years to encourage investment in the sector
ISLAMABAD (Mudassar Ali Rana) – The federal government has prepared a draft National Policy aimed at promoting local manufacturing of vaccines by offering a comprehensive financial and regulatory incentive package, official documents revealed.
Under the proposed policy, vaccine manufacturers will be provided a special financial incentive package for a period of 10 years to encourage investment in the sector. It includes tax incentives, protection for investors and both financial and regulatory incentives for companies investing in vaccine manufacturing.
According to the draft, investors in the vaccine industry will be given relief on taxes as well as concessions on input costs. Manufacturing companies will be eligible for corporate tax relief while machinery and equipment imported for vaccine production will be exempt from customs duty and sales tax.
It also proposes investment allowances and government level compensation in case of losses. Expenditures related to vaccine production, clinical trials and workforce training will also qualify for concessions.
The documents show that Pakistan currently imports vaccines worth approximately $340 million annually. This import bill could rise sharply to $1.2 billion between 2030 and 2035 if local production is not developed. The policy notes that around 700,000 children are born in the country every year and vaccination against diseases such as hepatitis, malaria and dengue is essential for newborns. The government has declared local vaccine manufacturing a matter of national health security. To ensure sustainability the government will purchase quality verified locally manufactured vaccines for a period of up to 10 years. The prices of locally produced vaccines will be kept lower than imported alternatives.
For addressing financing gaps the policy proposes the establishment of a National Vaccine and Biology Fund. Financing may be obtained from international institutions such as the Asian Development Bank, World Bank, Islamic Development Bank, as well as from local sources.
The draft policy also states that local credibility and compliance with international standards will be mandatory for vaccine exports. Talks will be held with the International Monetary Fund and the Federal Board of Revenue to secure approval for tax exemptions.
Sources said the policy has entered its final stages and is likely to be introduced by the government in the near future.
