ISLAMABAD, September 28, 2026: China’s growing influence in global pharmaceutical innovation is creating new opportunities for Pakistan to expand local medicine manufacturing, acquire advanced technologies and strengthen research partnerships, as the country seeks to reduce its dependence on imported pharmaceutical raw materials.
The potential for Pakistan-China pharmaceutical cooperation has increased as Chinese-developed medicines attract international investment and licensing agreements. For Pakistan, the developments could support domestic production of active pharmaceutical ingredients (APIs), vaccines and biotechnology products while helping local companies build stronger research and manufacturing capabilities.
According to official Chinese data, innovative-drug licensing agreements reached approximately $110 billion in the first half of 2026 through 81 transactions. The value represented nearly 80 percent of the total recorded during 2025.
The agreements covered 10 therapeutic areas, including cancer, metabolic disorders, immune-related conditions and neurological diseases, with buyers from around 20 countries and regions.
China’s National Medical Products Administration said the country accounted for approximately 30 percent of new drugs under development worldwide.
Clinical trials in China exceeded 5,000 for the first time in 2025, including 2,997 trials involving new drugs, representing 57.5 percent of the total.
China also approved 76 innovative medicines in 2025, compared with 48 in 2024. More than 150 overseas licensing agreements involving Chinese-developed drugs were concluded during the year, with their potential value exceeding $130 billion.
Pakistan-China pharmaceutical agreements reach $629.5 million
The expansion of China’s pharmaceutical industry comes as Pakistan and China increase cooperation in medicine manufacturing, biotechnology and healthcare technology.
According to Pakistan’s Ministry of National Health Services, a Pakistan-China pharmaceutical conference held in Islamabad in July 2026 resulted in 22 commercial agreements worth $629.5 million.
The conference also produced 84 memoranda of understanding with an estimated value of approximately $800 million.
The commercial agreements covered active pharmaceutical ingredient manufacturing, local vaccine production, clinical trials, generic medicines, injectable products and medical-device manufacturing.
The event brought together 240 Chinese delegates representing 140 companies and 430 Pakistani participants from 210 local firms.
Earlier, in May 2026, Pakistani and Chinese companies signed another 10 memoranda of understanding covering pharmaceutical investment, technology transfer, API manufacturing and vaccine collaboration.
These agreements provide a basis for expanding industrial cooperation, although their contribution to domestic manufacturing will depend on subsequent implementation.
Pakistan imports 95% of pharmaceutical raw materials
Reducing reliance on imported pharmaceutical inputs remains a significant challenge for Pakistan’s medicine manufacturing industry.
According to the Ministry of National Health Services, Pakistan produces nearly 85 percent of its pharmaceutical products domestically but imports approximately 95 percent of the raw materials used in their manufacture.
The figures highlight the difference between local production of finished medicines and domestic manufacturing of the ingredients required to produce them.
Greater cooperation with Chinese companies in active pharmaceutical ingredients, biotechnology and vaccine production could help Pakistani manufacturers increase local value addition and develop more advanced production capabilities.
Technology transfer would also provide opportunities for domestic companies and research institutions to acquire technical knowledge, adapt manufacturing processes and strengthen specialised expertise.
Expert calls for stronger university-industry research partnerships
Dr Muhammad Saalim, Assistant Professor at the Capital University of Science & Technology (CUST), Islamabad, and an R&D Consultant at biotechnology research organisation PsiMega2 (Pvt.) Ltd., said China’s experience demonstrated the importance of cooperation between universities and industry.
Speaking to Wealth Pakistan, Saalim said close links between academic research and commercial development had contributed to China’s ability to address technological challenges.
“From my experience of studying and working in China, I believe a major strength is the close collaboration between academia and industry, allowing China to address both current and future challenges,” he said.
He identified technology transfer, capacity building and joint research as particularly promising areas for cooperation between Pakistan and China.
“Rather than simply importing finished technologies, Pakistan could learn from China’s approach of acquiring, localising, adapting and further developing technologies,” Saalim said.
He cited China’s high-speed rail development as an example of how imported technologies can be absorbed, adapted and developed into domestic capabilities.
According to Saalim, a similar approach in pharmaceutical and life-sciences industries could help Pakistan strengthen its research institutions, manufacturing expertise and technological capacity.
Developing these capabilities would require closer collaboration between universities, pharmaceutical companies and research organisations, alongside improved clinical research infrastructure.
Pharmaceutical exports rise as industry seeks new markets
The opportunities for cooperation come as Pakistan’s pharmaceutical industry works to expand its presence in international markets.
According to the Finance Division, Pakistan’s pharmaceutical exports recorded a 34 percent year-on-year increase in 2025.
The industry has also proposed establishing a dedicated PharmEx Pakistan platform to support export growth, international certification and market diversification.
Stronger manufacturing capabilities and greater access to advanced pharmaceutical technologies could support these efforts by helping local producers move into more specialised areas of production.
However, the potential benefits of cooperation extend beyond establishing manufacturing facilities or importing newly developed medicines.
Saalim emphasised the importance of building Pakistan’s ability to absorb and further develop transferred technologies, allowing domestic institutions and companies to strengthen their own innovation capabilities.
China’s expanding pharmaceutical research and manufacturing sector, together with recent bilateral agreements, provides Pakistan with opportunities to pursue joint research, technology transfer and higher-value local production as cooperation between the two countries develops.