Bangladesh’s Pharmaceutical Exports Nearly Double in Five Years, Reach 162 Countries

Bangladesh’s pharmaceutical industry has made significant progress over the past several decades, meeting nearly 98% of domestic medicine demand through local production while expanding its presence in international markets. Bangladeshi medicines are now exported to more than 150 countries, and export earnings have nearly doubled over the past five years.

Industry stakeholders say the growing international presence of Bangladeshi pharmaceutical products marks an important milestone. Rising production capacity, a broader product range and access to new markets have created further opportunities for export growth.

According to the Directorate General of Drug Administration (DGDA), Bangladesh currently exports medicines to 162 countries. Pharmaceutical companies earned Tk 17.74 billion from exports in fiscal year 2021-22. Export earnings subsequently increased each year, reaching Tk 32.50 billion in FY2025-26.

Industry entrepreneurs expect pharmaceutical exports to reach $1 billion by 2030.

Top 10 pharmaceutical exporters

According to DGDA data, 323 units are registered to manufacture allopathic medicines in Bangladesh, of which 251 are operational. More than 500 additional units produce Unani, Ayurvedic, homeopathic and other traditional medicines.

In FY2025-26, Square Pharmaceuticals led allopathic medicine exports, generating Tk 4.04 billion in export earnings. ACI?

The second-largest exporter was Acme Laboratories, with exports worth Tk 4.02 billion. Nipro JMI ranked third with Tk 3.72 billion, followed by Incepta Pharmaceuticals at Tk 3.18 billion and Renata at Tk 2.58 billion.

The next five companies in the ranking were Aristopharma, SKF Pharmaceuticals, Beacon Pharmaceuticals, Healthcare Pharmaceuticals and General Pharmaceuticals.

Growth potential and persistent challenges

Industry stakeholders say demand for Bangladeshi medicines is growing internationally, with exports reaching highly regulated markets such as the United States, the United Kingdom, the European Union and Australia.

To sustain this progress, however, the industry needs to expand its product portfolio, strengthen research and innovation, and develop the capacity to manufacture complex and high-value medicines. Reducing dependence on imported active pharmaceutical ingredients (APIs), establishing internationally recognised testing laboratories and addressing the cost and complexity of overseas drug registration are also essential.

Pharmaceutical technology experts and health economists say Bangladesh has benefited from special intellectual property provisions under the World Trade Organization framework, which have enabled local manufacturers to produce generic versions of medicines patented abroad.

For long-term competitiveness, however, the country needs to rely less on these advantages and invest more in its own technology, API manufacturing and innovation capabilities.

A study by the Centre for Policy Dialogue (CPD) identified dependence on imported raw materials and limited investment in research and development as key weaknesses in the industry. The potential loss of certain intellectual property-related advantages following Bangladesh's graduation from the least developed country (LDC) category also poses a challenge.

Professor Syed Sabbir Haider of the Department of Pharmaceutical Technology at the University of Dhaka told Ajker Patrika that market-oriented research, product development and internationally accredited testing facilities were necessary to boost exports.

“Currently, domestic companies have to rely on foreign facilities for bioequivalence testing. Establishing internationally compliant laboratories in Bangladesh would reduce costs and strengthen export capacity,” he said.

Haider also stressed the importance of ensuring that export incentives are used effectively.

Industry leaders call for greater investment and policy support

Pharmaceutical entrepreneurs say rising international competition makes investment in product quality, research, development and manufacturing technology increasingly important. They believe innovation and market expansion could significantly increase export earnings.

Two important terms in international pharmaceutical trade are PIC/S and RoW.

The Pharmaceutical Inspection Co-operation Scheme (PIC/S) facilitates cooperation among regulatory authorities on pharmaceutical manufacturing standards and inspections. Its participating authorities include the US Food and Drug Administration (FDA), Australia's Therapeutic Goods Administration (TGA) and Singapore's Health Sciences Authority (HSA).

RoW, or the rest of the world, refers to markets outside certain major pharmaceutical destinations and includes various countries in Asia and Africa.

Industry representatives say experience in European markets could help Bangladeshi manufacturers enter markets such as Singapore, Australia and South Africa, where some regulatory requirements are comparable. Access to the US market, however, remains particularly challenging. Brazil and other large South American markets also offer opportunities for expansion.

A substantial share of Bangladesh's pharmaceutical exports currently goes to RoW markets. In recent years, some Bangladeshi medicines have also entered European and Australian markets.

Expanding exports to these destinations requires compliance with international standards, completion of product registration and fulfilment of the relevant national regulatory requirements.

Muhammad Halimuzzaman, secretary-general of the Bangladesh Association of Pharmaceutical Industries (BAPI) and deputy managing director of Healthcare Pharmaceuticals, said export earnings must exceed the costs associated with imported raw materials.

“We want Bangladesh's pharmaceutical industry to build a market in the global economy even larger than that of the ready-made garment industry,” he said.

He noted that registering companies and medicines in foreign markets involves substantial expenditure, including product-specific fees and inspection costs.

The government could provide subsidies to help companies meet these expenses and offer loans on favourable terms for product development, he added.

Abdul Muktaidir, president of BAPI and chairman of Incepta Pharmaceuticals, said Bangladesh had laid the groundwork for establishing a stronger position in international markets.

“The foundation for establishing a presence in the global market has been laid. If export barriers can be removed, the market can expand further. Policy support from the government is needed,” he said.

Muktaidir also called for the removal of policy barriers and a reasonable alignment between manufacturing costs and selling prices to strengthen producers' capabilities.

Drug regulator seeks faster approvals and WHO recognition

Expanding pharmaceutical exports requires manufacturers to maintain quality standards and meet the regulatory requirements of destination countries.

Alamgir Hossain, director general of the DGDA, said the agency was working to expedite regulatory procedures, including registration and approvals, to facilitate exports.

He added that Bangladesh was pursuing the World Health Organization's Maturity Level 3 (ML3) recognition to expand opportunities for vaccine exports.

Achieving ML3 requires a country to demonstrate that its national regulatory system can effectively oversee vaccine approval, manufacturing-site inspections, quality assessment and post-market safety monitoring, among other functions.

“Achieving ML3 could increase international confidence and help expand opportunities for vaccine exports. We are working to ensure pharmaceutical manufacturing quality in line with WHO standards,” Hossain said.

Imported raw materials remain a major vulnerability

Bangladesh began exporting medicines in 1985. Its domestic pharmaceutical market is now worth approximately Tk 370 billion, and local manufacturers meet nearly all domestic demand.

However, around 85% of the industry's raw materials are still imported, leaving manufacturers exposed to international supply disruptions and price fluctuations.

Gonoshasthaya Pharmaceuticals began domestic raw material production in 1988. Although local manufacturing has made some progress since then, dependence on imported ingredients remains substantial.

Plans to establish an industrial park for pharmaceutical raw materials have also yet to become operational on the expected scale.

As Bangladesh seeks to expand pharmaceutical exports and move into more sophisticated international markets, strengthening domestic API production, increasing investment in research and development, and improving regulatory infrastructure will remain critical to the industry's long-term competitiveness.