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The government of Pakistan is moving to strengthen the country’s healthcare system by promoting domestic vaccine manufacturing. Officials confirmed that a draft national policy is in its final stages, proposing a 10-year financial package and tax incentives aimed at attracting private investment and reducing the country’s reliance on imported vaccines.
Currently, Pakistan imports vaccines worth around $340 million annually. Analysts warn that this figure could rise to $1.2 billion by 2030-2035 if local production is not expanded. The policy seeks to address this challenge by providing long-term financial certainty and regulatory support to local manufacturers.
Incentives for Manufacturers
The policy frames vaccine production as a national health security priority, reflecting Pakistan’s high population growth and public health needs. Around 700,000 children are born every year, making routine vaccination against diseases like hepatitis, dengue, and malaria essential.
Key incentives in the draft policy include:
- Corporate tax relief for vaccine manufacturers
- Exemptions from customs duty and sales tax on machinery and equipment
- Reduced input costs to make local production commercially viable
- Investment allowances and protection mechanisms in case of financial losses
- Concessions on vaccine development, clinical trials, and workforce training expenses
To ensure sustainable demand, the government plans to purchase locally manufactured vaccines for up to 10 years, guaranteeing market certainty. Prices of locally produced vaccines are expected to remain lower than imported alternatives, easing fiscal pressures while improving public access.
Financing and Institutional Support
The policy also proposes establishing a National Vaccine and Biology Fund to bridge financing gaps. Funding may come from multilateral institutions such as the Asian Development Bank, World Bank, and Islamic Development Bank, alongside domestic sources. Discussions are reportedly underway with the International Monetary Fund and Federal Board of Revenue to secure approval for tax and fiscal incentives under the policy framework.
Officials say the policy is nearing final approval, and its formal introduction could mark a significant milestone for Pakistan’s healthcare resilience and long-term vaccine security.
