Surgical industry of Pakistan dates, back to 19th century when some British doctors got their surgical instruments repaired from the skilled workers of Sialkot and thus it laid foundation to the Sialkot Surgical Industry
The world trade in medical and surgical industry is huge which goes up to 30 billion dollar. Although Pakistan fetches a very small share in the world trade, still the local industry possesses specialized skills and workers expertise which carry a century old experience in producing these sophisticated items. Pakistani products are sold in highly developed market of Germany, France, USA, Belgium etc which are also bracketed as high income markets.
This is a sector where Pakistan enjoys specialized skills. Products are exporting into high income markets of USA, Germany & France. Total world market is estimated at 30 billion USD. During 2010-2011 Pakistan exported Surgical & Medical instruments worth USD 260.60 million. This shows an increase of 13.7% over 2009-2010 export figures of 229.20 million.
The world trade in medical and surgical industry is huge which goes up to 30 Billion dollars. Although Pakistan fetches a very small share in the world trade, still the local industry possesses specialized skills and workers expertise which carry a century old experience in producing these sophisticated items. Pakistani products are sold in highly developed market of Germany, France, USA, Belgium etc. which are also bracketed as high income markets.
The average export price of Sialkot made surgical items is between dollar 1.5 to 5 (for disposable products) which is higher than the Chinese export price of USD 0.35 per item. Pakistan has no competitor in Ophthalmic handheld instruments.
The city of Sialkot is very well known particularly in Europe for its Surgical industry. There are around 2300 companies engaged in this industry which produce on average 150 million pieces per year with an estimated value of around Rs. 22 billion. Almost 95% production is export oriented. Pakistan basically produces basic disposable instruments.
The shift of emphasis in the global leading manufacturers is on high value added products. Practically Sialkot has no competitor on basic component and most of the production from Germany has shifted to Pakistan. The result is that Pakistan produces semi-finished goods which are repackaged in Germany, Europe & USA and then sold internationally at higher prices. The very low quantity is consumed locally due to low demand by public health entities and private sector hospitals. Infact, this Sialkot based industry has limited contacts with the local end users, they normally operate through bulk buyers/traders. Out of 2300 major companies 30 units are large integrated units. These bigger companies are technically advanced with lot of mechanization in their production processes. They have also diversified products into medical mechanized devices. Second category is of medium type of firms which are around 150 in numbers and they handle exports of above 100 million. The small units are 2000 in numbers and they handle export of up to 80 million.
The details of surgical instrument which are being exported is as under
- Instruments and appliances used in medical or veterinary sciences
- Instruments and appliances, used in dental sciences
- Needles, catheters, cannulas
- Syringes, with or without needles
- Oxygen therapy, artificial respiration/ therapeutic respiration
- Dentists, barbers or similar chairs and parts thereof
- Medical, surgical, dental or veterinary furniture and parts
- Dental drill engines, whether or not combined on a single base equipment
- Ophthalmic drill engines, and appliances
- Breathe appliances & gas masks, protective masks
- Tubular metal needles and needles for sutures
- Mechano-therapy application; massage app; psychological aptitude test apparatus
The first Investment Policy by Board of Investment (BOI) was given in 1997 which opened services, social, infrastructure and agriculture sectors for foreign and local investors. It was a major step forward for integration of Pakistan’s economy into international markets as prior to this policy; foreign investment was restricted to manufacturing sector only. The 1997 Policy laid a solid foundation for the gains in FDI inflows experienced over the subsequent decade.
Foreign Direct Investment in Pakistan increased by 2761.10 USD Million in 2016. Foreign Direct Investment in Pakistan averaged 2651.26 USD Million from 2010 until 2016, reaching an all time high of 3184.30 USD Million in 2010 and a record low of 2099.10 USD Million in 2012.
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