I&M Exclusive: Discussion with Mr. Haroon Qassim, Managing Director, Pharmevo (Pvt.) Limited

With a rich academic background, Mr. Haroon Qassim has an in-depth knowledge of Pakistan Pharmaceutical Industry, having served as Chairman of PPMA.  Mr. Haroon Qassim is a modern corporate executive who runs his company at the standard and level of a multi-national corporation.  Beyond corporate business success, he is dedicated to Corporate Social Responsibility.  The books, brochures, messages, and calendars of PharmEvo are renowned for PharmEvo’s dedication to national development.  Mr. Haroon Qassim puts national human resource development and education at the center of Pakistan’s national development and enhancing the image of Pakistan and Father of Nation Quaid-e-Azam Mohammad Ali Jinnah.  For this reason, he has taken immense interest in the activities of Memon Professional Forum, Memon Medical Institute, and HeartFile, among other organizations.he has been a speaker on national issues in particularly related to pharmaceutical industry from various platforms. He was in the pivotal role in organizing an international seminar on the subject “Pakistan Pharma Summit” during his tenure as chairman of PPMA.

In this interview with I&M, he talks about the need for the government to formulate and positive and balanced policy for the growth of the pharma industry of Pakistan.

“The basic requirements for surviving and excelling  in this competitive world as survival calls not only for ‘fittest’ but also for finest” - Mr. Haroon Qassim

Pricing Policy: 

The government has to take a decision in consultation with the stakeholders. Price increase is inevitable. There is no option left for us as raw material prices are not declining in global markets.  Energy, food, salaries, everything has gone way up, so why not drug prices? There is no justification for not increasing prices.  In Pakistan, there is a political element in the consideration of medicine prices, which impacts the pharma industry badly. This dismal outlook  greatly hampers any investment or improvement in the industry.  

There should be a market-based pricing.  The government should not prescribe  prices in the industry.  They should talk about quality not prices. I don’t understand why a  government should interfere in pricing. If they want to control the industry, then they should also consider entering production and manufacturing.  Government should not expect the private sector to manufacture and subsidize the healthcare cost.

Withdrawal of Multinational Companies:

If the business environment does not improve, the pullout will increase because multinationals are here to make a profit. Simply put, if things go otherwise ,they will rather prefer to leave.

Pharma Industry in Pakistan and Region:

The regional industry is burgeoning because  governments have supported them. For example,  In India, they have a limited number of products (essential life drugs) under price control.  We can learn from them.  They have regulations for molecules not for drug pricing.  Moreover, they do not control prices for all molecules.

Drugs from Pakistan have been exported to countries like Sri Lanka, Philippines, Vietnam, etc. & none of these have price controls as prices are market-based . We also make our pricing for these countries as per market competition, but unfortunately, we have to refer to government pricing to sell in our own country.

Competition in Export Markets:

We are very competitive against India and China in our regional markets.   Pakistan’s top level companies are exporting to Far East countries and their products are good and competitive. 

Over the past five years, Pakistan’s pharma industry export  has stalled  because industry is badly distracted  by issues they should not be caught up in the first place. Subject of export is begging for the attention of regulators and government.  There are no incentives for investment in Pakistan, so national companies are not making investments for export production.  To compound the problem, even Far East countries are becoming more stringent in regulations and in future we may have a tough time there. In the face of these challenges, the government must respond & take initiatives for growth in bilateral trade.

Cooperation of TDAP and BOI:

TDAP supports pharma industry in exports, but they have their own limits because they also depend on funding from the federal government. They have other industries to look after as well, like textiles. They do listen to us, but their hands are tied as they don’t have extra funds for the pharma industry.

As far as BOI is concerned, I think their work will be difficult unless the government creates better business conditions for the pharma industry.  Our government should encourage the pharma industry, but the problem is that the government is going in one direction and industry is going in another direction.  There is a huge trust deficit and  no long-term vision. Government should play its role responsibly and effectively.  The industry must also adapt to  international regulations to survive and to compete on global standards. 

Subjects of Agreement and Disagreement with Pharma Bureau:

We don’t have a disagreement on price issue with multinationals.  On the subject of patents, we want things to be fair. 

Human resource Development:

Unfortunately,  human resource cannot be quantified in the balance sheet.  At PharmEvo, we work on human resource development. Our education policy & sponsoring our employees for higher education can provide an idea on how serious we are in human capital development. In our corporate philosophy of human development, we emphasize on four things: Competence, Commitment, Consistency and Compassion, the basic requirements for surviving and excelling  in this competitive world as survival calls not only for ‘fittest’ but also for finest. We also never ever permitted politics to pervade in our corporate fabric. People join us and  progress as per their skills and performances & we can gladly say that Alhamdullilah, we have a very dynamic team.   Thus HR development holds the key to national progress.

Counterfeit and Spurious Drugs:

With due respect (to the media), this matter is sensationalized by the media.  Government  ministers give statements at the parliamentary level that attract international media & in turn affects the industry’s export and sales.  It should not be over-sensationalized as this menace is not created by registered pharmaceutical companies in Pakistan. Criminal people do this and it is the duty of government to pursue and prosecute the criminals.  That is the way to play a constructive role, not through price controls.