Bangladesh’s API sector eyes $2b in exports with policy support
Bangladesh’s Active Pharmaceutical Ingredients (API) sector could achieve $2 billion in export earnings within five years while slashing import dependence, industry leaders projected at a roundtable discussion on Saturday, July 19.
The event, titled Taking the API Sector of Bangladesh Forward: The Need for a Task Force to Support the Interim Government and Implement the Recommendations of the Health Sector Reform Commission, was hosted by the Bangladesh API and Intermediaries Manufacturers Association (BAIMA) at Karwan Bazar, Dhaka.
BAIMA President Saifur Rahman highlighted the sector’s potential, noting that API exports reached $18 million in 2018 but declined due to the COVID-19 pandemic and regulatory hurdles. “If India can export $30 billion in APIs, Bangladesh can easily reach $2 billion with five years of uninterrupted policy support,” Saifur said.
He called for tax exemptions, VAT refunds, and a low-cost refinance policy akin to that provided to the garment industry to enhance competitiveness.
Saifur expressed gratitude for recent government support, saying, “Since 2016, the government has recognised the importance of APIs, and the interim government has started providing facilities.”
He urged the formation of a dedicated task force or advisory committee to address sector-specific challenges and implement recommendations from the Health Sector Reform Commission.
ABM Jamaluddin, BAIMA executive member and Managing Director of Gonoshasthaya Pharma, emphasised the economic benefits of domestic API production.
“We import $1.5 to $2 billion worth of APIs annually. With government cooperation, we could produce 50% of this locally, boosting employment and saving foreign exchange,” he said.
Sheikh Nizam Uddin, another BAIMA member, added, “Expanding this sector would create jobs for university graduates, tapping into a growing talent pool.”
Rashed Rabbi, president of the Health Reporters Forum, underscored the sector’s potential, stating, “With robust policy support, we can significantly reduce import reliance, making medicines more affordable and strengthening our economy.”
BAIMA’s demands include streamlined policy implementation, financial incentives, tax benefits, and the creation of a task force to resolve API sector challenges. These measures aim to address bottlenecks such as high production costs and limited access to capital, which have hindered growth. The proposed task force would bring together stakeholders to ensure timely adoption of health sector reforms, fostering a competitive and sustainable API industry.
The API sector’s growth could transform Bangladesh’s pharmaceutical landscape, which is already a global player in generic drug exports. By producing raw materials locally, the country could reduce its $1.5–2 billion import bill, conserve foreign exchange, and create thousands of jobs. The interim government’s recent tax exemptions on raw materials, such as cotton for textiles, signal a broader commitment to supporting export-driven industries, raising hopes for similar support for APIs.
As Bangladesh aims to diversify its economy, the API sector stands at a critical juncture. With targeted policies and sustained government backing, industry leaders believe it can become a cornerstone of economic resilience, delivering both export revenue and domestic self-sufficiency.