The pharmaceutical industry in Pakistan has grown over the past few decades since independence in 1947.

Currently, the pharmaceutical industry is a thriving sector in Pakistan's economy, with a production volume of $3.2 billion with an annual growth of 10-12%, while its exports currently stand at $ 293 million (in 2018) and is carried out in more than 50 countries around the world.

In Pakistan, there are more than 759 pharmaceutical manufacturing facilities, including 27 units operated by multinational corporations present in the country. The industry is dominated by majorplayers with top 100 firms accounting for ~97% of market share. Despite limited growth potential, small firms continue to operate on account of profitable export opportunities in neighboring countries like Afghanistan and provision of contract manufacturing to other companies.

Pharmaceutical companies are geographically spread all over Pakistan. Pharmaceutical production units in provinces tend to concentrate in major cities like Karachi, Lahore and Peshawar. Although the numbers reflect that majority of firms are in the province of Punjab, but in terms of production, capacity utilization, volume and size of business, Karachi leads the way as far as pharmaceutical firms are concerned.

The national pharma industry has shown a progressive growth over the years, particularly over the last one decade. The industry has invested substantially to upgrade itself in the last few years and today the majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. Currently the industry has the capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech, Oncology and Value Added Generic compounds.

The Pakistan pharmaceutical Industry meets around 90% of the country's demand of finished dosage forms and 4% of active ingredients.

The pharmaceutical industry in Pakistan has the potential to increase its exports to such an extent that it can become the largest export industry in the country, potentially even surpassing the textile industry.