Tariffs on India, deregulation boost industry; Citi Pharma eyes American expansion
Pakistan’s pharmaceutical exports surged 34% to an all-time high of $457 million in fiscal year 2025, and analysts say U.S. tariffs on Indian competitors could open the door for even stronger growth ahead.
The milestone, up from $341 million in FY24 and $328 million in FY23, comes as Washington imposes 50% tariffs on Indian imports from August 2025, potentially shifting market share toward Pakistani producers. A recent U.S.-Pakistan agreement set American tariffs on Pakistani goods at 19pc%, far below the level faced by India, creating what industry experts call a $1.4 billion export opportunity.
Citi Pharma’s FDA breakthrough
Citi Pharma Limited (PSX: CPHL), Pakistan’s largest producer of Active Pharmaceutical Ingredients (APIs), secured U.S. FDA approval in September 2024 for nutraceutical products ranging from fertility and weight management to skin care and joint pain relief. This only Pakistani company that has the permission to exports to U.S hopes to get multi-million-dollar exports orders, a company’s executive said. When asked about the profit margin, he said it could be up to 30%.
Notably, recently, the Bill & Melinda Gates Foundation pledged $2.5 billion by 2030 to advance 40+ women’s health innovations, focusing on underserved areas, particularly in low- and middle-income countries, marking its largest-ever such investment.
“The FDA’s approval not only opens the U.S. market but enhances our global standing. The recent tariff decision will also help boost our exports,” he said, noting potential for fresh partnerships and investments. Citi Pharma’s product line spans tablets, capsules, syrups, gels, injections, and infusions for domestic and export markets.
Deregulation fuels expansion
A Topline Securities report credits the export surge to the deregulation of non-essential drug prices, freeing resources for innovation and overseas expansion. The brokerage forecasts further growth this year, with U.S. buyers possibly pivoting from higher-cost Indian suppliers.
In July, Citi Pharma also struck a deal with India’s Murli Krishna Pharma Private Ltd to supply APIs to Pakistan, underscoring its widening global network.
