The pharmaceutical sector in Pakistan has achieved record profits of Rs. 42.2 billion in 2025, marking a 78 percent year-on-year increase, according to Topline Research.
According to the details, net sales rose 14 percent to Rs. 365.7 billion, driven by deregulation-led price growth, with fourth quarter sales alone reaching Rs. 102.1 billion.
Gross margins strengthened to 41 percent in 2025 compared with 35 percent in 2024, while fourth quarter margins further improved to 44 percent.
Lower active pharmaceutical ingredient costs supported profitability, with 53 percent of APIs showing a median price decline of 11 percent during January to October.
AGP Limited, Highnoon Laboratories Limited, and The Searle Company Limited reported the highest gross margins among listed companies, highlighting sector-wide operational efficiency improvements.
Finance costs fell 49 percent to Rs. 4.2 billion in 2025, reflecting reduced debt levels and lower interest rates across the sector.
The sector’s effective tax rate remained broadly stable at 39.9 percent, ensuring consistent fiscal contributions despite significant earnings growth during the year.
Shareholder returns strengthened, with total dividends rising to Rs. 21.1 billion in 2025, compared with Rs. 12 billion distributed a year earlier.
GlaxoSmithKline Pakistan Limited, Abbott Laboratories Pakistan Limited, and Haleon Pakistan Limited were the largest dividend contributors, reflecting strong cash generation and distribution capacity.
Topline Research expects profitability to remain strong as companies expand product portfolios and focus on higher margin segments, though API price volatility remains a risk.
